Under Annuity Deposit Scheme, the rate at which interest is accrued on term deposits is also found in it.
SBI Annuity Deposit Scheme: If you are thinking about depositing lump sum money somewhere, then you can consider the Annuity Deposit Scheme of SBI. Under this scheme of SBI, the depositor has to deposit one time lump sum, after which he gets this amount as EMI (monthly installment) at a specified time. The depositor is paid interest along with the principal. This interest is calculated at the compound interest rate every quarter on the amount left in the account. At this time when there is an atmosphere of uncertainty, in such a situation, it is a better plan because it gets interest at a higher rate than a savings account. Under the scheme, the rate at which interest is accrued on term deposits is also found in it. Any Indian citizen can become a part of this scheme and can be a part of the scheme either singly or jointly.
Features of Annuity Deposit Scheme
- Under the scheme, the customer has to pay a lump sum once and after that the principal and interest are received as monthly installment.
- Deposit period – 36 months, 60 months, 54 months or 120 months.
- Available at all branches of SBI.
- Minimum deposit amount – 25 thousand rupees.
- Minimum Annuity – 1 thousand rupees.
- Interest rates of term deposits also apply to this scheme. SBI staff and SBI pensioners will get 1% more interest.
- 0.5 percent more interest to senior citizens.
- Annuity will be paid from the due date the next month of the deposit and if the date (29, 30 and 31) does not come in any month, the annuity will be received on one of the next month.
- Annuity payment will be made after deducting TDS and credited to the linked budget account or current account.
- Nomination facility is available.
- Under special circumstances overdraft / loan of up to 75% of the balance amount of annuity can be availed. After taking loan / overdraft, the annuity payment will be credited to the loan account.
- Universal passbook will be issued.
- Can transfer from one branch to another.
- Premature closure is allowed in the event of the depositor’s death. Apart from this, prepayment of deposits up to Rs 15 lakh is also allowed.
- According to the term deposit, the scheme attracts pre-mature penalty.