new Delhi. The country's largest bank i.e. State Bank of India (SBI) provides many types of Savings Schemes to the common people. One of these savings schemes of SBI is the SBI Annuity Schemes. Under this scheme, you can invest once and get monthly income for regular time. After receiving a fixed amount of interest on the amount deposited by the customer in an annuity payment, the income starts getting. In this scheme of SBI, a minimum amount of Rs 1,000 can be deposited for monthly annuity. There is no limit on maximum investment in this scheme.

What is the period of investment

This annuity scheme of SBI can be invested for a period of 36, 60, 84 or 120 months. The interest rate on this investment will be the same for the term deposit of the chosen period. For example, if you want to make an annuity deposit for 5 years, then the depositor will get interest only according to the interest rate applicable to the 5-year FD.

Make a lump sum payment once and for the entire tenure of the Annuity Deposit Scheme enjoy numerous benefits. To know more, visithttps: //t.co/13pRBgvbkp pic.twitter.com/zHdELPsL82

– State Bank of India (@TheOfficialSBI) November 8, 2019

Also read: Bank's savings account holders will get this facility free from January 1, RBI order

Loan option

If the depositor who takes advantage of this scheme dies, then premature withdrawal is also allowed. Under this scheme, a loan of 75 percent of the deposit can also be taken. However, even after opting for the loan option, the payment of future annuity will be deposited in the loan account until the entire loan is repaid. Suppose if you want a monthly annuity of Rs 10,000 for 5 years, then you have to deposit Rs 5,07,965.93 keeping in view the interest rate of 7 percent.

What is merit

Anyone can take advantage of this scheme. In this, individual or joint accounts, adults and minors can also be opened. This scheme will be followed by account transfer in another branch, TDS rules based on FD rules.

What is the difference between RD, FD and annuity rate?

Annuity deposit scheme is exactly the opposite of the recurring deposit scheme. In a recurring deposit, the depositor deposits a fixed amount every month and a certain amount is received at maturity. However, in the case of annuity maturity, the amount has to be deposited in one go and a fixed amount is received every month after the completion of the selected period. Whereas, in case of FD, the depositor deposits the amount for a fixed tenure. At the time of maturity, this amount is returned along with interest.

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