SBI Annuity Deposit Scheme Calculator – Interest Rates, Eligibility, & more

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Updated on Feb 14, 2024

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 2024 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.

What is an Annuity Deposit Scheme?

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.

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6 Different Types of Annuity deposit scheme

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

Features of the SBI Annuity Deposit Scheme 

Below are some features of SBI Annuity Deposit Schemes:

  • The scheme allows investors to start the policy with a minimum deposit amount of INR 25,000
  • It is easily accessible across all Indian branches except for the ones that allow specific credit intensive
  • The interest offered under the scheme is the same as that of a term deposit
  • Further benefits are offered for provided to ex -employees of SBI in the form of 1% payable interest above the applicable rate
  • The scheme can be transferred in any SBI branch across India, whereas the nomination facility can also be accessed easily by issuing the universal passbook

Eligibility for the SBI Annuity Deposit Scheme 

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.

  • An Indian Resident individual (can also be minor).
  • The investor can be holding a Single or Joint Account.
  • NRIs with NRE or NRO Accounts are not eligible.

Components of the SBI Annuity Scheme 

Component  Details
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

Benefits of the SBI Annuity Scheme 

Here are some benefits of SBI Annuity Scheme:

  • The scheme allows varied options in terms of tenure of policy and maturity. An investor can choose from different alternatives if they want flexible tenure ranging from few days up to 10 years
  • The payment of the annuity ensures a safe lock-in period and is made in advance after the depositor is no more
  • There is no upper deposit limit under this scheme
  • The scheme allows up to 75% loan facility of the total amount

SBI Annuity Deposit Scheme Interest Rates 2024

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 
7-45 Days 3.00% 3.50%
46-179 Days 4.50% 4.40%
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.

FD Rates Comparison for Different Banks in India

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 %

Why Are Annuity Deposit 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.

5 Benefits and Need of SBI Annuity Deposit 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.

How to use SBI Annuity Deposit Scheme Calculator 2024?

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 2024:

  • 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

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

Important Things to Consider at the Time of Buying SBI Annuity Deposit Plan

If you are planning to buy the SBI Annuity Deposit Plan, here are the things to remember:

  • Large premiums of annuity deposits attract greater payouts as the annuity amount
  • Annuity benefits that are received by investors are based on the chosen annuity type along with other things like annuity payout frequency, and the applied interest on the annuity
  • SBI Annuity deposit benefits come under the category of taxable income. Hence, they are subject to Income Tax laws
  • The payouts can be received in advance as per the choice of the investors
  • Monthly, quarterly, half-yearly, and yearly payment options are available for the annuity payouts

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FAQs: SBI Annuity Deposit Scheme Calculator 2024

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.

 

Is it possible to borrow money from other accounts to open an annuity account?

You can borrow money from OD, current or savings accounts to open an annuity deposit account.

Can a policyholder make premature payment with SBI annuity deposit scheme?

Though it is not allowed in normal circumstances. However, in case of death of insured/depositor, the nominee is allowed to do so.

Is there a tax imposed on SBI annuity?

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.

Between FD and Annuity, which one should I choose?

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.

What is the minimum amount that can be deposited in the SBI annuity deposit scheme?

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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Jan 18, 2024
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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