SBI Annuity Deposit Scheme

State Bank of India (SBI) offers an Annuity Deposit Scheme to enable the customer to pay a one-time lump sum amount and to receive the same in Equated Monthly Instalments (EMIs). This scheme is a type of fixed deposit (FD) or term deposit scheme. Under this scheme, the account holder can have a fixed monthly amount against the one time deposit comprising a part of the principal amount as well as interest on the reducing principal amount, calculated at quarterly rests and discounted to the monthly value. In this article, we look at the SBI Annuity Deposit Scheme in detail. To know about SBI Simplified Small Business Loan

Eligibility Criteria

All Indian resident individuals, including minors, can open the SBI annuity scheme. NRE and NRO customers cannot avail this facility under the annuity FD scheme.

Minimum Deposit Amount

The minimum deposit amount under the scheme must not be less than Rs. 25,000 in any case. This minimum deposit amount is based on a minimum monthly annuity of Rs. 1000 for the relevant period. i.e. for 3 years, the minimum deposit amount will be Rs. 36,000. There is no limit set for the maximum deposit amount under the scheme. Also, nomination facility is available.

Maximum Deposit Amount

In case of online annuity account, the maximum deposit amount for annuity FD scheme through Internet Banking shall be the same as applicable for Fund Transfer within own account.

Maturity Amount in Annuity Deposit

In Annuity deposit Scheme, as part of the principle and interest on reducing principal is paid in instalments over a period of time; therefore at the maturity date, the maturity amount remains Zero.

Tenure

The annuity scheme by SBI is available for 3 years, 5 years, 7 years or 10 years.

Rate of Interest

SBI annuity FD account offers to return at par with other SBI term deposits depending on the investors' chosen tenure. One-basis point is one-hundredth of a percentage point.

S.No.	Tenors	Revised Interest rate per annum for Public	Revised for Senior Citizens
1.	3 years to less than 5 years	6.8%	7.3%
2.	5 years and up to 10 years	6.85%	7.35%

Interest payment on annuity scheme will accrue or become due on the anniversary date of the period following the month of deposit. In case, such a date does not exist for the following month, payment will be given out on the 1st day of the next month.

Premature Payment Terms and Conditions

Premature payment under such a scheme is allowed only in the event of the death of the depositor. To prematurely withdraw the said deposit without seeking the concurrence of the legal heirs of the deceased joint deposit holder/s, the Bank is entitled to honour the same.

Loan facility

Under special cases or circumstances, the scheme grants overdraft or loan of a maximum of 75% of the annuity balance amount. And after such a loan is disbursed, scheduled annuity payments will be deposited in the loan account of the concerned.

Interest Subject to TDS

Interest payable is subjected to TDS for Annuity deposit. The amount of interest calculation is rounded off to the below rupee value, due to this there can be a change in the last annuity instalment.