Generally, you get annual interest on FDs of banks. But how will it be if the bank gives you money every month on your deposit? Yes, in lieu of the money taken from you, now the bank will give you EMI. Apart from common depositors, this scheme is also very suitable for senior citizens. It would be very convenient for them if they get a fixed amount every month. SBI’s Annuity Deposit Scheme is one such scheme, in which you get a fixed amount every month on your deposited money in the bank. It includes a part of the principal amount and interest on the remaining principal amount.
Who gets the benefit of annuity scheme
Any Indian citizen can take advantage of this scheme. A minor can also be involved in this. Single or joint account can be opened under annuity scheme. Those falling under NRE or NRO category cannot participate in it.
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At least 25 thousand will have to be deposited in this scheme in a lump sum. There is no maximum deposit limit. Deposit tenure is 3, 5, 7 or 10 years. However, the amount will be deposited in the account only after deducting TDS.
what will be the interest rate
The interest rate on SBI’s Annuity Annuity Deposit Scheme is the same as its FD rates. Currently, the interest rate on FDs in SBI ranges from 2.90 per cent per annum to 5.40 per cent per annum for various maturity periods. Senior citizens of 60 years of age or more get half percent more interest. SBI staff and bank pensioners get one percent more interest. According to the bank’s website, the payment of interest in the Annuity Deposit Scheme will start from the same date of the next month on the day the account is opened.
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