SBI Annuity Deposit Scheme, Its Types, Interest Rate 2023 and Calculator

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6 min read

Updated on Jan 23, 2023

Retirement is a time when the regular flow of money stops coming in. Hence, people buy annuity plans for their retirement. Let’s understand the SBI Annuity Deposit Scheme Calculator 2023 to evaluate your future expenses better.

To allow people a financially secured and comfortable post retirement life, State Bank of India (SBI) introduced the SBI Annuity Deposit Scheme. The scheme allows investors to avail monthly annuity payment over a fixed period of time by investing a lump sum amount.

Under the annuity plans, the investor doesn’t receive any maturity amount at the end of the term. Here, the initial investment known as the principal amount as well as the interest earned on the investment is paid back to the investor as a monthly annuity for his/her lifetime. In most annuity plans, the monthly pay or annuity is compounded on a quarterly basis while taking into account the discounts offered.

With the help of the SBI Annuity Deposit Scheme Calculator, an investor can determine the precise annuity amount that they could earn every month by investing in an annuity plan. Hence, they can calculate the annuity on the basis of the investment amount as well as the rate of interest that is applied. Let us understand the SBI annuity deposit scheme and the SBI annuity calculator in detail below.

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What is an Annuity Deposit?

An annuity is like a fixed payment that an investor receives every month from an annuity deposit scheme over a certain time period. In return of the regular pay, the investor has to invest a lump sum initial payment to the annuity account or make payments in installments as per convenience.

The interest under this plan, which is called diminishing interest on principal, as well as the principal amount is returned to the investor in the form of regular monthly annuity. Investors generally invest on the annuity plans to support them later in life when they are retired. The annuity payout may serve as pension once the investors retire and hence annuities mostly last for lifelong.

There are several Annuity Investments Plans available in the market that an investor can choose to invest on.

6 Types of Annuity investment plans

Below are some of the various Annuity Investment Plans that an investor can choose from:

  1. Lump-Sum Annuity – Here the investor receives the entire annuity amount in lump sum
  2. Periodic Annuity – The investor receives regular flow of income as periodic instalments, such as monthly payout or payout received after a period of time
  3. Immediate Annuity – Here the annuity is paid to the investor immediately after he/she makes the initial lump sum payment
  4. Deferred Annuity – This annuity comes in two phases – accumulation and payout. The plan first accumulates the investment amount for a certain period of time and offers incremental repayment later
  5. Fixed Annuity – Under this annuity plan, the payout is fixed and remains same throughout the payout period
  6. Variable Annuity – This is the riskiest annuity plan which depend on market conditions

The interest rate of SBI Annuity Deposit Schemes

Time Period  Interest Rates for General Citizens  Interest Rate for Senior Citizens 
7 – 45 days 2.90% 3.40%
46 – 178 days 3.90% 4.40%
179 – 364 days 4.40% 4.90%
1 – 2 years 5% 5.50%
2 – 3 years 5.10% 5.60%
3 – 5 years 5.30% 5.80%
5 – 10 years 5.40% 6.20%

Why Are Annuity Calculators Used?

Annuity Deposit Calculators are used to calculate the premiums of annuity plans. The SBI Annuity Scheme Calculator is an online tool that is used to evaluate the premiums of annuity plans offered by SBI. This makes it easy to compare various plans and buy the one that suits you best.

Also, most annuity schemes allow a regular and steady source of income after retirement. By using the SBI Annuity Plan Calculator, you can determine the sum that an individual might have to pay to ensure a worry-free retirement.

The best thing about the SBI Annuity Calculators is that they offer accurate results and they are quick and easy to use. The online tools help in solving the complex calculations and support an investor to take better financial decisions.

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How to use SBI Annuity Deposit Scheme Calculator?

It is very easy to use the SBI Annuity Deposit Scheme Monthly Income Calculators and that is the reason why these calculators are so popular among investors. Anyone can use these calculators that are freely available on the official website of the company. These calculators can be used anytime and as many times as you want.

Here are the steps that can be taken to use the SBI Annuity Deposit Scheme Calculator 2023:

  • Visit the official website of the company and click on the tab of ‘Annuity Plus’
  • Now, go to the ‘Premium Calculation’ button and click on it
  • Next step is to add personal details like investor name, email id, mobile number, gender, etc.
  • The investor might also have to inform if the person wants to buy annuity for one or two people
  • The next step is to submit annuity details such as, if the insured wants to pay the investment as a lump sum amount or in the form of installments
  • Now, go to the ‘Calculate Premium’ tab and click it
  • You can see the premium amount that is required to pay for purchasing the annuity on the page displayed in front of you
  • Based on the premium amount, the investor can decide if he/she wants to purchase the annuity plan. In case the investor wants to go with the plan, the person is required to enter his/her complete details
  • Once the plan is fixed, the investor can submit the annuitant details, such as the name of the policyholder. The policyholder can be the purchaser of the annuity policy or a person who is the beneficiary of the plan
  • As a final step, the investor must pay the investment via online mode to complete the purchase
  • Further, in case of any doubt or confusion, the investor may dial the SBI toll-free helpline number – 1800 267 1800 during 8.30 am to 9.30 pm

5 Benefits of the Calculator

Below are some of the benefits of using the SBI Annuity Deposit Scheme Calculator:

  1. This is a digital tool available freely online and can be used at the convenience of the investor
  2. SBI Annuity calculator can be operated easily and in a hassle-free manner
  3. The calculator offers accurate calculations and can be used as many times as required by the investor
  4. The calculator helps investors in getting a clear picture of the investment that they need to make to receive a guaranteed amount for their retirement in the future
  5. With the SBI Annuity Calculator, the investor can save from the tedious task of making manual calculations to ensure investment possibilities.

Read More: What is an Annuity? What are its Benefits and Different Types of Annuities?

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FAQs: SBI Annuity Deposit Scheme Calculator

Can NRIs invest in the SBI Annuity Deposit Schemes?

No, NRIs cannot invest in SBI Annuity Deposit Schemes. Only resident Indians are allowed to invest in these schemes.

Does the SBI Annuity Deposit Schemes offer special rates of interest for senior citizens?

Yes. SBI Annuity Deposit Scheme offers special rates for all senior citizens.

Can an investor change his nominee?

Yes. It is possible for an investor to change his nominee. The investor may visit the nearest branch office of SBI to get it done.

What is the policy term of SBI Annuity Deposit Schemes?

The term period of SBI Annuity Deposit Schemes can range from 3, 5, 7, or 10 years, as per the convenience of the investor.

How does the SBI annuity deposit scheme work?

The customer, under the SBI annuity deposit scheme, can deposit a one-time lump sum amount to receive monthly returns. The amount that is received includes the principal amount together with the interest accrued.

Is SBI annuity scheme taxable?

The interest payable under the SBI annuity deposit scheme is subject to TDS.

 

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Jan 18, 2023
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