Retirement is a time when the regular flow of money stops coming in. Hence, people buy annuity plans for their retirement.
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.
Below are some of the various Annuity Investment Plans that an investor can choose from:
Lump-Sum Annuity – Here the investor receives the entire annuity amount in lump sum
Periodic Annuity – The investor receives regular flow of income as periodic instalments, such as monthly payout or payout received after a period of time
Immediate Annuity – Here the annuity is paid to the investor immediately after he/she makes the initial lump sum payment
Deferred Annuity – This annuity comes in two phases – accumulation and payout
Fixed Annuity –Under this annuity plan, the payout is fixed and remains same throughout the payout period
Variable Annuity – This is the riskiest annuity plan which depend on market conditions
7 – 45 days
46 – 178 days
179 – 364 days
1 – 2 years
2 – 3 years
3 – 5 years
5 – 10 years
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.
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.