All you need to know
There is good news for the clients of the State Bank of India (SBI). The State Bank of India (SBI) offers a special deposit system to its clients. Through this SBI program, you can start earning monthly income after a certain time. In the SBI Annuity Deposit Scheme, clients deposit a lump sum with the bank and receive monthly installments. SBI Annuity Deposit Scheme is transferable between SBI branches.
According to the official SBI website, the depositor must pay a single lump sum and receive the same amount in Equivalent Monthly Installments (EMI), comprising a portion of the principal amount as well as interest on the declining principal amount, compounded quarterly at rest and discounted at the monthly value.
Here’s everything you need to know about the SBI Annuity Deposit Scheme.
According to the SBI website, the characteristics are:
– Allow the customer to deposit a single lump sum and receive reimbursement in a monthly payment including part of the principal amount plus interest.
– Deposit period: 36/60/84 or 120 months
– Available in all branches
– Deposit amount based on a minimum monthly pension of Rs 1000 / – for the period concerned
– Under no circumstances should the minimum deposit amount be less than Rs. 25,000 / –
– Maximum deposit amount: no upper limit
– Interest rate applicable to term deposits for the public and the elderly
– Payment of the annuity on the anniversary date of the month following the month of deposit.
– If this date does not exist (29, 30 & 31), it will be paid on the 1st day of the following month.
– Nomination is available in favor of individuals only
– Overdrafts / loans up to 75% of the annuity balance may be granted in special cases.
– After OD / loan disbursement, another annuity payment will be deposited to the loan account only.
– A universal passbook is issued instead of the term deposit
– Transferability allowed between branches
Learn more about the SBI pension plan:
You can invest in the SBI annuity plan for a period of 36, 60, 84 or 120 months. In this, the interest rate on the investment will be the same as for the term deposit of the chosen period.
If you want to earn a monthly income of Rs 10,000, you will need to make a deposit of Rs 5,07964. On the amount you deposited, you will get an interest rate return of 7 percent, which amounts to Rs. 10,000 every month.
A minimum amount of Rs 1,000 can be deposited into the SBI annuity plan each month. There is no maximum investment limit in this plan. In annuity payment, interest begins on the amount deposited by the client after a specified period.