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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.
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.
Below are some of the various Annuity Investment Plans that an investor can choose from:
Below are some features of SBI Annuity Deposit Schemes:
Anyone including minors can have SBI Annuity Deposit Scheme who can hold the account individually or jointly with anyone else. However, NRE and NRO are not eligible for this scheme.
|Premature payment||The scheme allows premature payment in case of death of depositor for which the concurrence of the legal nominees of the deceased is required|
|Loan facility||Loan is available on up to 75% of the balance in the account under some|
|Interest rate||The account provides a return that is comparable to other term returns of SBI.|
|Maturity amount||The return amount as well as the interest amount are offered in instalments over a time period.|
|Eligibility||All Indian citizens are eligible including minors.|
|Taxes on earned interest||The interest offered is as per the TDS in annuity deposits|
Here are some benefits of SBI Annuity Scheme:
Let’s take a look at the annuity interest rates of the SBI Annuity Deposit Scheme as recorded for the mentioned period of investments:
|Time Period of Annuity Deposits||Interest Rates for General Citizens||Interest Rate for Senior Citizens|
|180- 210 Days||5.25%||5.75%|
|211 Days-1 Year||5.75%||6.25%|
|1 Year- 2 Years||6.75%||7.25%|
|2 Years- 3 Years||6.75%||7.25%|
|3 Years- 5 Years||6.25%||6.75%|
|5 Years- 10 Years||6.25%||7.25%|
Note: Interest rates as of 24th January 2023.
|Name of bank||Tenure of FD||Interest rates|
|Axis Bank||6 months – 5 years||5.75% – 7.00%|
|Bank of Baroda||3 months – 10 years||4.50% – 6.50%|
|Bank of India||3 months – 10 years||4.50% – 6.00%|
|Bandhan Bank||3 months – 10 years||3.00% – 7.85%|
|Canara Bank||3 months – 10 years||5.50% – 6.70%|
|Co-operative Bank||1 year – 5 years||6.00% – 6.35%|
|DBS Bank||3 months – 10 years||3.00% – 6.50%|
|Equitas Bank||7 days – 10 years||3.50% – 7.25%|
|HDFC Bank||3 months – 10 years||4.50% – 7.00%|
|ICICI Bank||3 months – 10 years||4.50% – 6.90%|
|IDBI Bank||3 months – 20 years||4.50% – 4.80%|
|Indian Bank||3 months – 10 years||3.50% – 6.10%|
|Indian Overseas Bank||3 months – 10 years||4.50% – 6.50%|
|LIC||1 year – 5 years||7.25% – 7.75%|
|Punjab National Bank||3 months – 10 years||4.50% – 6.50%|
|Post Office||1 year – 5 years||6.90% – 7.50%|
|RBL Bank||3 months – 20 years||4.75% – 7.00%|
|SBI Bank||3 months – 10 years||3.00% – 6.50%|
|UCO Bank||3 months – 10 years||4.50% – 6.10%|
|Union Bank of India||3 months – 10 years||3.00% – 6.70%|
|Yes Bank||3 months – 10 years||4.75% – 7.00 %|
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.
Below are some of the benefits of using the 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:
If you are planning to buy the SBI Annuity Deposit Plan, here are the things to remember:
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No, NRIs cannot invest in SBI Annuity Deposit Schemes. Only resident Indians are allowed to invest in these schemes.
Yes. SBI Annuity Deposit Scheme offers special rates for all senior citizens.
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.
The term period of SBI Annuity Deposit Schemes can range from 3, 5, 7, or 10 years, as per the convenience of the investor.
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.
The interest payable under the SBI annuity deposit scheme is subject to TDS.
You can borrow money from OD, current or savings accounts to open an annuity deposit account.
Though it is not allowed in normal circumstances. However, in case of death of insured/depositor, the nominee is allowed to do so.
Yes, as per the IT Act of India, the Annuity plan offered by SBI is taxable. It is also subjected to TDS or Tax Deductions at Source.
The Annuity policies are compounded depending on market conditions, while the interest rates of FDs are offered as per the fixed annual rates applied till maturity. You may compare different aspects of both plans to choose the one that suits you better.
The minimum amount is INR. 25,000 under the SBI annuity deposit scheme. However, there is no upper limit to the deposit.
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