BackSBI FD scheme vs SBI annuity deposit scheme for getting monthly income
SBI annuity deposit interest rate is as applicable to term deposits of tenor opted by the depositor
PremiumState Bank of India or SBI fixed depositors, who want monthly income on regular basis, may look at the SBI annuity deposit scheme offered by the largest commercial bank of India. Under this scheme, a depositor is given same interest rate as offered to a term depositors for the tenor chosen by the investor. So, the basic difference between SBI FD and SBI annuity deposit scheme is in disbursal of maturity amount. In SBI FD, a depositor will have to make one time deposit and get one time maturity after the completion of tenure whereas in SBI annuity deposit scheme, a depositor will make one time deposit and in return the amount is repaid to the customer over the tenor selected by him / her, along with interest, in equated monthly installments.
On what does an annuity deposit scheme mean for a SBI depositor, the official website of SBI — onlinesbi.sbi — says, "Under this scheme, a lump sum amount is deposited by a customer which is repaid to the customer over a period in equated monthly installment which comprises part of principle amount and interest on the reducing principle amount as well. Using the scheme customer can have fixed monthly amount against his one time deposit. Payment will start on anniversary date of the month. If date is non-existent (29th, 30th and 31st), it will be paid on 1st day of next month."
On difference between SBI FD and SBI annuity deposit scheme, SBI website informs, "In Fixed Deposit account customer makes one time Deposit and receives the maturity amount at maturity date which comprises principal and interest in case of STDR and principal only in case of TDR as interest is paid at periodic interval. Annuity Deposit accepts one time Deposit and amount is repaid to the customer over the tenor selected by him / her, along with interest, in equated monthly installments." So, in SBI In annuity deposit, as part of the principle and interest on reducing principle is paid in installments over a period of time hence at maturity date, the maturity amount remains zero.
SBI annuity scheme: Minimum and maximum deposit
To get ₹1,000 per month for 5 years, minimum deposit required would be ₹60,000 that will be given back to the depositor along with interest, in equated monthly installments. The maximum amount limit through Internet Banking will be the same as applicable for Fund Transfer within own account.
SBI annuity deposit scheme interest rate
An annuity depositor will get return on one's money as applicable to term deposits of tenor as opted by the depositor.
TDS rules on SBI annuity deposit scheme
Interest payable will be subject to TDS for Annuity deposit. The interest amount calculation is rounded off to the lowest rupee value, due to this there can be variation in the last annuity installment.
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