NEW DELHI: The State Bank of India (SBI) provides annuity deposit scheme with a fixed amount every month after making a one-time lump sum payment. Any individuals, including minors, can opt for the plan and mode of holding could be singly or jointly.
“To enable the depositor to pay one-time lump sum amount and to receive the same in equated monthly instalments (EMIs), comprising a part of the principal amount as well as interest on the reducing principal amount, compounded at quarterly rests and discounted to the monthly value,” SBI mentioned on its website.
Here are the key things to know about SBI’s annuity deposit scheme:
* The scheme can be invested in for a period of 3 years, 5 years, 7 years and 10 years.
* The rate of interest as applicable to SBI annuity scheme is the same as SBI fixed deposits (FDs).
* The scheme can be availed at all SBI branches (except specialised credit intensive branches) across the country.
* The minimum deposit is based on a minimum monthly annuity Rs 1,000 for the relevant period. However, there’s no maximum deposit limit.
* The interest rate payable to SBI staff and SBI pensioners will be 1% above the applicable rate.
* For senior citizens (60 years and above) will be paid 0.50% higher the applicable rate.
* The interest payable will be subject to TDS for SBI annuity deposit scheme.
* The interest amount is calculated by rounding off the lowest rupee value.
* Overdraft or loan up to 75% of the balance amount of annuity can be granted on special cases, SBI said. After disbursal of loan, further annuity payment is deposited in loan account only, it added.
* Nomination facility is also available with the SBI scheme.
* A universal passbook is issued and the scheme can be transffered among SBI branches.