| TENURE | REGULAR RATES | SENIOR CITIZEN |
| 7 days to 45 days | 3.50% | 4.00% |
| 46 days to 179 days | 5.50% | 6.00% |
| 180 days to 210 days | 6.25% | 6.75% |
| 211 days to less than 1 year | 6.50% | 7.00% |
| 1 year to less than 2 year | 6.80% | 7.30% |
| 2 years to less than 3 years | 7.00% | 7.50% |
| 3 years to less than 5 years | 6.75% | 7.25% |
| 5 years and up to 10 years | 6.50% | 7.50% |
| 400 days (Amrit Kalash) | 7.10% | 7.60% |
| 444 days (Amrit Vrishti) | 7.25% | 7.75% |
SBI Annuity Deposit Scheme
The SBI Annuity Deposit Scheme is a financial product offered by the State Bank of India (SBI) designed to provide investors with a steady stream of monthly income. By depositing a lump sum amount, investors receive fixed monthly payments over a specified period. This scheme is particularly appealing to individuals seeking a reliable income source, especially during retirement.
Returns as high
as 7.1%*
Includes life cover
Completely Tax free+
as 7.1%*
Includes life cover
Completely Tax free+
Maximum returns Offered by
Guaranteed
Highest
7.1%*
Guaranteed Plan
(by insurance companies)
(10 Years)
6.5%**
Fixed Deposits
(by SBI bank)
(5-10 Years)
7.1%***
Public Provident Fund
(other popular options)
(15 Years)
Get Guaranteed returns up to 7.1%*
Fully Tax-Free* (unlike FD), Life Cover Included
- Home
- FD Interest Rates
- SBI FD Interest Rates
- SBI Annuity Deposit Scheme
SBI FD Interest Rates
What is the SBI Annuity Deposit Scheme?
The SBI Annuity Deposit Scheme allows customers to deposit a one-time lump sum with the bank in exchange for monthly annuity payments. These payments consist of both principal and interest on the diminishing balance. The scheme is structured as follows:
-
Deposit Amount: A minimum deposit of â‚ą25,000 is required.
-
Tenure Options: Customers can choose from tenures of 3, 5, 7, or 10 years.
-
Monthly Payments: Payments are made monthly, combining principal and interest.
Comparison Between
Guaranteed Return Plans
Returns Before Tax
7.5% (TAX-FREE)
Returns After Tax
7.5%
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Still Better than FD’s and Debt Mutual Fund
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
*For annual premium upto ₹5 Lacs
SBI Annuity Deposit Interest Rates ~ w.e.f. 15 June 2024
The interest rates for the SBI Annuity Deposit Scheme are competitive and vary based on the tenure selected. Here’s a summary of the interest rates applicable from June 15, 2024:
| Tenure | Interest Rate for Public (p.a.) | Interest Rate for Senior Citizens (p.a.) |
| 3 years to < 5 years | 6.75% | 7.25% |
| 5 years to ≤ 10 years | 6.50% | 7.50% |
These rates ensure that investors can earn attractive returns on their deposits while receiving monthly payouts.
Eligibility Criteria for SBI Annuity Deposit Scheme
To qualify for the SBI Annuity Deposit Scheme, applicants must meet the following criteria:
-
Residency: Open to all Indian residents, including minors.
-
Account Type: Can be held as a single or joint account.
-
Exclusions: Non-Resident Indians (NRE) and Non-Resident Ordinary (NRO) account holders are not eligible.
FD interest rates India have fallen consistently over the last 12 years.
Features of the SBI Annuity Deposit Scheme
The SBI Annuity Deposit Scheme comes with several notable features:
-
Flexible Tenure: Choose from tenures of 3, 5, 7, or 10 years.
-
Minimum Monthly Annuity: The deposit amount is based on a minimum monthly annuity of â‚ą1,000 for the selected tenure.
-
Maximum Deposit Amount: There is no upper limit on the total deposit amount.
-
Interest Rates: Interest rates are aligned with those applicable to regular term deposits for both the public and senior citizens.
-
Premature Payment Options: Premature withdrawals are allowed for deposits up to â‚ą15,00,000, subject to penalties similar to those for term deposits. In case of the depositor's death, premature payment is permitted without any limit.
-
One-Time Lump Sum Deposit: Customers can deposit a one-time amount and receive monthly annuity payments that include both principal and interest.
-
Interest Compounding: Interest is calculated quarterly but paid out monthly.
-
Annuity Payment Schedule: Monthly payments are made on the anniversary date of the month following the deposit. If this date does not exist (e.g., 29th, 30th, or 31st), payments will be made on the 1st of the next month.
-
Overdraft/ Loan Facility: Up to 75% of the annuity balance can be borrowed under certain conditions.
-
Nomination Facility: Allows investors to nominate beneficiaries for their deposits.
-
Tax Deducted at Source (TDS): Interest earned is subject to TDS.
How to Apply for the SBI Annuity Deposit Scheme?
Applying for the SBI Annuity Deposit Scheme is straightforward:
-
Visit an SBI Branch: Go to your nearest SBI branch.
-
Fill Out Application Form: Complete the application form for the annuity deposit scheme.
-
Submit Required Documents: Provide necessary identification and address proof.
-
Deposit Funds: Make your initial deposit of at least â‚ą25,000.
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Benefits of Investing in the SBI Annuity Deposit Scheme
Investing in this scheme offers several advantages:
-
Guaranteed Monthly Income: Provides a consistent income stream, ideal for retirees or those needing regular cash flow.
-
Safe Investment Option: Backed by SBI, it offers security compared to other investment avenues.
-
Flexible Investment Amounts: No cap on maximum deposits allows for larger investments as per individual financial goals.
-
Loan Accessibility: The ability to borrow against the annuity balance enhances liquidity.
-
Universal Passbook Issuance: A universal passbook is provided in lieu of the term deposit.
-
Branch Availability: The scheme is available at all SBI branches across India.
-
Transferability Among Branches: The scheme allows for easy transfer of accounts between different SBI branches.
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Conclusion
The SBI Annuity Deposit Scheme is an excellent option for individuals seeking a secure and reliable source of monthly income through their investments. With competitive interest rates, flexible tenures, and additional benefits like loan facilities and premature payment options, it caters well to various financial needs. Whether planning for retirement or looking for a safe investment avenue, this scheme provides a structured approach to managing finances effectively while ensuring peace of mind through regular payouts.
FAQs
-
What is the SBI annuity deposit scheme?
The SBI Annuity Deposit Scheme is a financial product offered by the State Bank of India that allows customers to make a one-time deposit and receive fixed monthly payments over a specified period. These payments consist of both principal and interest calculated on the reduced balance. The scheme is available for tenures of 3, 5, 7, or 10 years. -
What is the annuity return rate in SBI?
The interest rates for the SBI Annuity Deposit Scheme vary based on the tenure. As of June 15, 2024, the rates are as follows: for tenures of 3 to less than 5 years, the rate is 6.80% for the public and 7.30% for senior citizens; for tenures of 5 years and up to 10 years, the rates are 6.85% for the public and 7.35% for senior citizens. -
Which is better, annuity or FD?
Choosing between an annuity and a fixed deposit (FD) depends on individual financial goals. An annuity provides regular monthly income, making it suitable for those needing consistent cash flow, while an FD typically offers a lump sum at maturity with interest paid at intervals. If regular income is a priority, an annuity may be better; if capital growth is desired, an FD might be preferable. -
Is the SBI annuity good?
The SBI Annuity Deposit Scheme can be a good option for individuals seeking stable monthly income, especially retirees. It offers competitive interest rates, flexible tenures, and no upper limit on deposits, making it an attractive choice for those looking to secure their financial future. -
Is the SBI annuity deposit taxable?
Yes, the interest earned on the SBI Annuity Deposit Scheme is subject to Tax Deducted at Source (TDS). This means that tax will be deducted from the interest before it is credited to your account. Investors should consider this when calculating their net returns from the scheme.
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per
applicable tax slabs post 31st march 2023
#Discount offered by insurance company
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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