Annuity deposit is different from recurring deposit account. (Representational Image)
The scheme accepts a lump sum deposit and the amount along with interest is paid to the subscriber in equal monthly installments.
There are many schemes and financial products available for investors to earn good returns from their money. in banks India The customer is provided with various options as to the amount that can be used for making deposits in a particular scheme.
State Bank of India Annuity Deposit Scheme is one such deposit scheme. But before going into the details, it is important to first know what is annuity deposit.
What is annuity deposit?
Under this plan, a lump sum amount is deposited by a customer which is repaid to the customer in equated monthly installments consisting of part of the principal amount and interest on the reducing principal amount. As per the information available on the official website of SBI, by using this scheme the customer can get a fixed monthly amount in lieu of his lump sum deposit amount.
Is Annuity Deposit different from Recurring Deposit Account?
Yes. In Recurring Deposit account the customer pays in installments and receives the maturity amount on the maturity date, whereas in annuity deposit one time deposit is accepted and interest on that amount and reducing principal is paid to the customer in installments over a period chosen by him. is done in
How is annuity deposit different from a fixed deposit account?
In fixed deposit account customer makes one time deposit and receives maturity amount on maturity date which includes principal and interest in case of special fixed deposit rate and only principal in case of fixed deposit rate as interest is paid at periodic intervals But, it is done.
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Annuity deposit accepts a lump sum deposit and the amount is repaid in equal monthly installments, along with interest, over a period chosen by the subscriber.
SBI Annuity Deposit Scheme
SBI defines its annuity deposit scheme, to enable the depositor to pay a lump sum amount and receive, in Equated Monthly Installments (EMIs), a portion of the principal amount plus interest on a reducing principal amount , compounded at quarterly intervals and discounted monthly.
To enable the customer to deposit a lump sum amount and receive its repayment in monthly annuity installments along with the principal amount along with interest.
What is the interest rate under SBI Annuity Deposit Scheme?
Interest rate applicable on fixed deposits for general public and senior citizens.
When does the payment start under the Annuity Deposit Scheme?
The minimum monthly annuity for the relevant period is Rs. 1000/- on the basis of deposit. Payment will start on the anniversary date of the month. If the date does not exist (29, 30 and 31), it will be paid on the 1st of the following month.
term of deposit: 36/60/84 or 120 months
Is premature payment allowed under SBI Annuity Deposit Scheme?
Premature payment is allowed for deposits up to Rs.15,00,000. However, penalty charges apply.
In case of death of the depositor, premature withdrawal is permitted without any limit.
The interest payable will be subject to TDS for annuity deposits.
SBI has given detailed instructions on its official website for the purpose of awareness. Customers can check the latest updates related to the annuity deposit scheme before applying for it.
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