SBI Annuity Deposit Scheme: Interest Rates, Other Features Explained Here
SBI (State Bank of India) offers several savings schemes under its personal banking portfolio. It offers annuity deposit scheme, which is a type of fixed deposit (FD) or term deposit. SBI's scheme enables the depositor to pay a one-time lump sum amount and receive the same in equated monthly instalments (EMIs). It comprises a part of the principal amount as well as interest on the reducing principal amount. The amount is compounded at quarterly rests and discounted to the monthly value, according to the bank's official website - sbi.co.in.
Key things to know about SBI's annuity deposit scheme:
1. Customers needs to deposit a minimum amount of Rs. 25,000. However, there is no maximum limit of deposit amount for SBI's annuity scheme.
2. The rate of interest is same as applicable to the fixed deposit account of the term opted by the depositor. Here are the following FD interest rates for deposits below Rs. 2 crore from February 22, 2018:
| Tenors | For general public | For senior citizens |
|---|---|---|
| 3 years to less than 5 years | 6.80% | 7.30% |
| 5 years and up to 10 years | 6.85% | 7.35% |
| (Source: sbi.co.in) | ||
3. A term of 36 months, 60 months, 84 months or 120 months (3 years, 5 years, 7 years or 10 years) is available under SBI's scheme.
4. Under annuity deposit scheme, the facility of premature payment is available. However, it is permitted only in case of death of the depositor, said SBI, the country's largest bank.
5. Customers can also avail the overdraft facility. A loan up to 75 per cent of the balance amount of annuity can be granted in special cases, according to SBI. After disbursal of loan, further annuity payment is deposited in loan account only. A nomination facility is also available with this scheme.
