SBI Annuity Deposit scheme is a month-to-month revenue investment but with a twist. In the SBI Annuity Deposit, the investor gets a common month-to-month revenue but absolutely nothing is paid to the investor on maturity. This is for the reason that the lump sum quantity deposited by the investor is repaid more than a period in equated month-to-month instalment which comprises portion of the principal quantity and interest on the lowering principal quantity. As portion of the principle and interest on lowering principal is paid in installments more than a period of time therefore at the maturity date, there is no maturity quantity remaining to be paid.
In a fixed deposit, you can get month-to-month, quarterly interest payouts though the principal quantity invested is received back by the investor at the finish of maturity. In SBI annuity deposit scheme, on investing a lump sum quantity, it is repaid to the investor more than the tenure chosen along with interest, in equated month-to-month installments. Annuity generally signifies pension or a common revenue for a specific period or for a lifetime.
The minimum deposit quantity for the Annuity deposit is based on the minimum month-to-month annuity Rs 1000 for the relevant period. i.e for 3 yrs, the minimum deposit quantity will be Rs 36,000. The Annuity deposit is offered for 3 yrs / 5 yrs / 7 yrs and 10 yrs. All resident person investors which includes minors can invest in the scheme. The price of interest will be the exact same as applicable to Term deposits of tenor as opted by the investor. The senior citizens can avail added price of interest on the Annuity Deposit scheme.
For instance, utilizing the SBI annuity deposit calculator, you will come across that at a 5.3 per cent price of interest for 3 years, on depositing Rs 1.5 lakh, you will get about Rs 4500 per month for 3 years. On maturity, no quantity becomes payable.
One can invest in SBI Annuity Deposit strategy by means of SBI Net Banking but from an account exact same as in the debit account from which the Annuity Deposit account is funded. The e-Annuity deposit account will be generated in the exact same name of the account holder as in the account from which it is funded.
The SBI Annuity Deposit strategy may possibly suit these hunting for a greater month-to-month revenue on their deposits, and not necessarily hunting at a higher-interest price. Before investing in the SBI Annuity Deposit strategy, one may possibly speak to the bank executives to know about other critical information which includes the quantity of month-to-month revenue arrived at soon after utilizing the calculator. As the maturity quantity is not there in the scheme, it is critical you have an understanding of the working of the scheme ahead of investing in it.