SBI Annuity Deposit Scheme

Hello and welcome to this blog on the SBI Annuity Deposit Scheme. If you're looking for a safe and secure way to invest your money and receive regular income, then this scheme could be the perfect option for you. Here, we will be discussing in detail what the SBI Annuity Deposit Scheme is, how it works, its benefits, and how you can invest in it.

What is the SBI Annuity Deposit Scheme?

The SBI Annuity Deposit Scheme is a fixed deposit scheme offered by the State Bank of India, where you can deposit a lump sum amount and receive a fixed amount of money as a regular income. This income is paid out monthly, quarterly, half-yearly, or yearly, depending on your preference.

How does it work?

To start with the SBI Annuity Deposit Scheme, you need to make a minimum deposit of Rs. 25,000, and the maximum amount that you can deposit is Rs. 5 crore. The deposit tenure can range from 36 to 120 months. The interest rate offered on the deposit is calculated on a quarterly basis and ranges from 5.40% to 6.20% depending on the tenure.

Let's take an example to understand how the SBI Annuity Deposit Scheme works. Suppose you invest Rs. 10 lakh for a period of 10 years at an interest rate of 6%. Then, the monthly annuity that you will receive will be Rs. 10,885. This means that you will receive a total of Rs. 13,06,200 in 10 years, which is the principal amount plus the interest earned.

Benefits of the SBI Annuity Deposit Scheme:

One of the key benefits of this scheme is that it provides a fixed and regular income to the investor, which can be used for meeting regular expenses, or to build a retirement corpus. Moreover, the interest rate offered by SBI on this scheme is relatively higher than other traditional fixed deposit schemes, which can help you earn more on your investment.

Another benefit of the SBI Annuity Deposit Scheme is that it offers flexibility in terms of the payout frequency. You can choose to receive the annuity on a monthly, quarterly, half-yearly, or yearly basis, depending on your requirement.

The SBI Annuity Deposit Scheme also comes with the safety and security of the State Bank of India, which is the largest bank in India. Your investment is safe and secure with SBI, and you can be assured of timely and hassle-free payments.

Taxation on SBI Annuity Deposit Scheme:

The interest earned on the SBI Annuity Deposit Scheme is taxable as per your tax bracket. However, you can claim tax benefits under Section 80C of the Income Tax Act, 1961, if you opt for a deposit tenure of 5 years or more.

How to invest in the SBI Annuity Deposit Scheme?

To invest in the SBI Annuity Deposit Scheme, you can visit your nearest SBI branch or log on to the SBI online portal. You need to fill in the application form and provide the required documents, such as your identity proof, address proof, and PAN card.

It is important to note that premature withdrawal of the SBI Annuity Deposit Scheme is allowed, but it comes with a penalty of 1% on the applicable rate of interest.

Conclusion:

To sum up, the SBI Annuity Deposit Scheme is an excellent investment option for those looking for a fixed and regular income. It offers a higher interest rate than other traditional fixed deposit schemes and comes with the safety and security.