Fixed depositors of State Bank of India or SBI, who want regular monthly income, can check out SBI Annuity Deposit Scheme offered by the largest commercial bank of India. Under this scheme, a depositor is given an interest rate offered to fixed depositors for a period chosen by the investor. So, the basic difference between SBI FD And SBI Annuity Deposit Scheme is in disbursement of maturity amount. In SBI FD, a depositor will have to make a lump sum deposit and attain a lump sum maturity after the completion of the tenure, whereas in SBI Annuity Deposit Scheme, a depositor will make a deposit once and in return the amount will be paid to the customer during the tenure. With interest in monthly installments selected by him.
What is the meaning of Annuity Deposit Scheme for SBI depositor, SBI’s official website – onlinesbi.sbi – says, “Under this scheme, a lump sum amount is deposited by a customer which is repaid to the customer over a period of equal months. Installment which includes part of the principal amount plus interest on the diminishing principal amount. Using the scheme the subscriber can set the monthly amount against his lump sum deposit. The payment will start from the anniversary date of the month. If the date does not exist (29) , 30th and 31st) will be paid on the 1st of the following month.
On the difference between SBI FD and SBI Annuity Deposit Scheme, the SBI website informs, “In a fixed deposit account the customer makes a lump sum deposit and receives the maturity amount on the maturity date which includes principal and interest in case of STDR and principal amount.” Happens only in case of TDR. Interest is paid at periodic intervals. Annuity deposit accepts lump sum deposit and the amount is repaid to the customer in equated monthly installments along with interest on the tenure chosen by him. So, SBI In annuity deposits, the interest is paid in installments as part of the principle and on reducing the principle, so on the maturity date, the maturity amount remains zero.
SBI Annuity Plan: Minimum and Maximum Deposit
Take 1,000 per month for 5 years, the minimum deposit required will be 60,000 which will be given back to the depositor along with interest in equated monthly installments. The maximum amount limit will be the same as applicable for fund transfer to own account through Internet Banking.
SBI Annuity Deposit Scheme Interest Rate
An annuity depositor will get the return on money as applicable to fixed deposits of the tenure chosen by the depositor.
TDS Rules on SBI Annuity Deposit Scheme
The interest payable will be subject to TDS for annuity deposits. The interest amount is calculated on the minimum value of Rs.
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