SBI Annuity Deposit Scheme: There are many such schemes of State Bank of India (SBI), which are a better option for fixed income. One such scheme is SBI Annuity Deposit Scheme. In this scheme lump sum money has to be deposited.
There are many such schemes of State Bank of India (SBI), which are a better option for fixed income. One such scheme is SBI Annuity Deposit Scheme. In this scheme lump sum money has to be deposited. After that there is guaranteed earning with interest every month. In SBI Annuity Deposit Scheme, the customer is given interest along with the principal amount every month. This interest is calculated on compounding every quarter on the balance amount in the account.
According to SBI’s website, the interest rate in this scheme is higher than the savings account. In this scheme, the same interest is available on the deposit, which is available on the term deposit ie FD (Fixed Deposit) of the bank. In this, Universal Passbook is also issued to the customer. Deposits can be made in this scheme for 36, 60, 84 or 120 months. This scheme is available in all branches of SBI. There is no limit of maximum deposit in this. At the same time, the minimum deposit will have to be made at least Rs 1000 according to the monthly annuity.
Annuity income will be taxed
In this scheme of SBI, annuity will be paid from the due date in the next month of deposit. If that date is not there in any month (29, 30 and 31), then annuity will be received on a date of the next month. Annuity will be paid after deducting TDS and credited to linked savings account or current account.
In SBI Annuity Deposit Scheme, common customers and senior citizens get the interest they get on term deposits. Individual nomination facility is available in this. Universal passbook will also be issued to the customer. The account of the scheme can be transferred from one branch of the bank to another branch.
Can take up to 75% overdraft
In this scheme of SBI, there is a lot of work in the time of need. On need, overdraft/loan up to 75% of the balance amount of annuity can be availed. The annuity payment will be credited to the loan account after the loan/overdraft is availed. Whereas, on the death of the depositor, the scheme can be closed prematurely.
Apart from this, time prepayment can also be done for deposits up to Rs 15 lakh. At the same time, pre-mature penalty will also have to be paid at the same rate as on FD. That is, according to the term deposit, there is a pre-mature penalty in this scheme. This account can be single or joint holding.
(Note: The details of the scheme have been taken from the official website of SBI.)
