Any person including a minor can initiate an SBI Annuity Deposit Plan. This holding can be both single or joint.
New Delhi: In the SBI Deposit Annuity Plan, the depositor has to deposit a lump sum amount. Instead they get money in installments. This includes the principal plus the interest on it.
Who can take SBI Annuity Deposit Plan?
Any person, including a minor, can start an SBI Annuity Deposit Plan. This holding can be both single or joint. Can not open an account in SBI annuity deposit scheme falling under NRE or NGO category.
What is the benefit of the scheme?
The SBI Annuity Scheme enables the depositor to pay a lump sum amount. After this, they get their money with interest in monthly installments. This interest is charged on the decreasing principal amount.
How much deposit needs to be made?
For SBI annuity deposit, one has to deposit at least Rs 36,000. It gets a monthly annuity of Rs 1,000 for 3 years. However, there is no maximum limit.
How long can I deposit?
One can invest in SBI Annuity Deposit Scheme for 3 years, 5 years, 7 years and 10 years.
How much does the interest get?
In SBI Annuity Deposit Scheme, interest as much as SBI Fixed Deposit is available. Let’s say that you deposit money for five years. In that case, you will get the return as much as the interest applicable on the five-year fixed deposit. Currently, SBI pays 5.40 percent interest on fixed deposits maturing in five to 10 years. This is 5.30% on FDs maturing in less than three to five years.
how can you open an annuity deposit account of SEBI’s Risk-O-Meter is very helpful in investing ?
To open an annuity deposit account, you can debit to a savings, current or OP account. The account chosen to be debited should not be dormant or locked.
What is the benefit for senior citizens?
Like FDs, senior citizens get more than half per cent interest in SBI annuity scheme. The rate applicable for SBI staff and SBI pensioners is 1% higher than the applicable rate.
How does tax apply?
TDS is deducted on payment of interest.
What is the facility of nomination?
SBI offers the facility of nomination with the scheme. In certain cases, overdraft or loan facility up to 75% of the balance amount is available. Once the loan is disbursed, the payment of annuity only goes to the loan account.
