You have the chance to earn every month by applying only 1000 rupees.
State Bank of India (SBI) offers an annuity scheme in the savings scheme. Under this scheme, once the fixed amount is deposited, a fixed amount can be deposited every month.
- Last Updated:
November 9, 2019, 10:40 AM IST
- Edited by: Puja menon
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
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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First published: November 9, 2019, 5:00 AM IST