SBI Annuity Scheme: In today’s era, every person wants to increase his monthly income. For this some people resort to change jobs and some take investment. If you want to invest to increase your income, then we are giving you information about some such schemes which are the best option for fixed income. By investing in SBI Annuity Scheme, you can earn good money every month.
Understand SBI’s Annuity Scheme
One can invest in this scheme of SBI for a period of 36, 60, 84 or 120 months. In this, the interest rate on investment will be the same as for the term deposit of the chosen tenure. Suppose if you deposit funds for five years, then you will get interest at the same rate of interest applicable to fixed deposit for five years. Any citizen of India can take advantage of this scheme.
You can invest from any branch
You can invest in Annuity Scheme from all branches of SBI. Its initial or minimum amount is 25 thousand rupees. SBI employees and ex-employees will get 1% more interest. Whereas senior citizens will be given 0.5 percent more interest. The interest rates of term deposit will also be applicable on this scheme.
Best plan to get lump sum amount
Annuity will be paid on the due date from the month following the deposit. This payment will be made in savings account or current account after deducting TDS. This is a better plan to get good returns on lump sum amount. Not only this, in special circumstances an overdraft / loan amount up to 75% of the balance amount of the annuity can be availed. Savings account gives better returns in Annuity Scheme.
What to do to increase monthly income
If an investor wants a monthly income of 10 thousand rupees every month, then for that the investor will have to deposit 5 lakh 7 thousand 965 rupees and 93 paise. On the deposited amount, you will get a return of 7 percent interest rate, due to which the investor will earn about 10 thousand rupees every month.
More trust in RD than annuity scheme
Generally middle class people lack lump sum amount. In such a situation, most people secure their future by investing in a recurring deposit. In RD, the amount is collected through small savings and then returned to the investor by charging interest on it. Because of this, Recurring Deposit is much preferred among common people as compared to Annuity Scheme.
