You can invest in the Annuity Deposit Scheme of the country’s largest bank State Bank of India (SBI).
SBI Annuity Deposit Scheme: If you are thinking of investing in the coming days, then you can invest in such a scheme, in which you will get a fixed amount every month. You can invest in the Annuity Deposit Scheme of the country’s largest bank State Bank of India (SBI). In this scheme, you have to deposit money in a lump sum amount and you will get fixed EMI for the month. Let’s know about it.
What is SBI’s Annuity Deposit Scheme?
According to the information available on the bank’s website, in SBI’s annuity deposit scheme, the depositor has to pay a lump sum amount and get the money in Equited Monthly Installments (EMIs). This includes the principal amount as well as the interest on it. Interest is calculated on quarterly basis.
Features of the scheme
- Under this scheme, the subscriber has to deposit a lump sum amount and will get that amount back in the form of monthly annuity installment. This will include interest along with the principal amount.
- The deposit tenure option is 36, 60, 84 or 120 months.
- This scheme is available at all branches of SBI.
- The amount of deposit is based on a minimum monthly annuity of Rs.1,000 for the respective tenure.
- Premature payment is allowed on deposits up to Rs 15 lakh. Penalty may be charged. It is applicable as per term deposit. In the event of death of the depositor, premature payment can be made without any limit.
- There is no limit on the maximum deposit amount.
- The interest rate will be the same as that of term deposits available for individuals and senior citizens.
- Annuity is paid on the same date of the month following the month of deposit.
- If that date does not exist in that month (29, 30 and 31), it will be paid on the first day of the following month.
- Nomination facility is available for individual individuals only.
- In special cases, an overdraft or loan up to 75 per cent of the annuity balance can be availed.
- After getting the loan, further annuity will be paid only in the loan account.
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