By depositing a lump sum amount through SBI’s Annuity Deposit Scheme, you can generate monthly income for yourself. In this you can start investing with 25 thousand rupees.
Many people have lost their jobs due to the Corona period, while the financial institutions of many people have decreased. In such a situation, taking care of the house has become a big challenge. To avoid this problem, annuity deposit scheme of State Bank of India (SBI) can prove to be helpful. In this, customers can make regular income every month for themselves by depositing a lump sum amount in the bank. The benefit of this scheme can be availed from any SBI branch.
According to the official website of SBI, a fixed amount is provided to the account holder in Equated Monthly Installments (EMIs). EMI covers a part of the principal plus interest on the diminishing principal amount, compounded at quarterly intervals and discounted on the monthly value.
who can invest
The applicant for investment in this scheme of SBI can be anyone from a minor to an adult. Joint or single account can be opened in this. Any person falling under the category of NRE and NRO cannot use this facility. SBI Annuity Deposit Scheme requires a minimum deposit of Rs 25,000, while there is no maximum limit.
Other features of the plan
Maturity options of 3 years, 5 years, 7 years and 10 years are available under SBI Annuity Deposit Scheme. The rate of interest is the same as applicable to the fixed deposits / fixed deposits of the tenure chosen by the depositor. Suppose you deposit the fund for five years, then you will get the interest as per the interest rate applicable on the five year fixed deposit. Currently, SBI offers 5.40% interest rate on deposits maturing in five to 10 years. For FDs maturing in less than three to five years, SBI offers an interest rate of 5.30%.
interest rate for senior citizens
Like FDs, senior citizens will get 50 basis points (bps) more than the rate applicable in SBI Annuity Scheme. The rate of interest payable to SBI Staff and SBI Pensioners will be 1% more than the applicable rate.
Also read: If you have an account in Bank of India, then do this work before September 30, otherwise you will not be able to do transactions
Alert to ICICI Bank customers! Keep these things in mind while using mobile banking, otherwise the bank account may become empty