All About SBI Annuity Deposit Scheme

SBI Annuity Deposit Scheme is a lump-sum investment scheme run by the State Bank of India. It allows investors to deposit a one-time lump sum amount and receive re-payment of the same in monthly annuity installment, along with interest. 

It is ideal for those who want a secure and assured source of monthly income. In this blog post, we shall discuss this scheme in detail and also mention the scheme’s interest rates for 2025 as per the tenure.

What is Annuity Deposit Scheme of SBI?

Annuity Deposit Scheme SBI is a scheme under which individuals can deposit a one-time lump sum amount to the State Bank of India. After the amount gets deposited, the bank then repays this amount periodically as equated monthly installments. These installments comprise a portion of principal amount as well as interest. 

The interest compounds quarterly and is paid out monthly. The scheme provides a monthly source of income, and is ideal for individuals who have retired or those who prefer low-risk investments. 

One can invest in this scheme for tenures of 3, 4, 7 or 10 years, with interest rates differing for each tenure. 

Formula For SBI Annuity Scheme Calculation

To calculate the monthly installment under the scheme, the following formula must be used :-

“A = P (1+r/n) ^ (n * t)”

Here, 

• ‘A’ refers to monthly annuity payment.
• ‘P’ refers to the principal amount.
• ‘r’ refers to the monthly interest rate.
• ‘n’ refers to the total no. of payments (in months).
• ‘t’ refers to investment tenure (in years).

Don’t want to calculate the monthly installment under the scheme manually? Check out the Annuity deposit scheme calculator offered by SEBI.

SBI Annuity Deposit Scheme Interest Rate

The annuity deposit scheme SBI interest rate for 2025 is as follows :-

Features of SBI Annuity Deposit Scheme

Here are the popular features of the scheme :-

• It is a one-time lump sum investment scheme. Therefore, you do not need to add money again and again in the scheme. 
• It is available at all branches of SBI across the country.
• The minimum amount to invest in the scheme is Rs. 1000. There is no upper limit regarding the maximum deposit amount.
• Transferability is permitted among the branches of SBI.
• One can invest in the scheme for 36 months (3 yrs), 60 months (5 yrs), 84 months (7 yrs) or 120 months (10 yrs).
• For the scheme, a Universal Passbook is issued in lieu of a term deposit certificate.
• In the event of the demise of the depositor, the bank will make the full payment in advance to the beneficiary.
• Nomination is available only in favour of an individual. Entities such as trusts or societies generally cannot be nominated. 

Eligibility For SBI Annuity Deposit Scheme

Interested in investing under this scheme? Check out the eligibility for it. :-

• Resident Indian citizens can invest in the scheme. They can set up single or joint accounts.
• The minors can also invest in the scheme as long as they are resident Indian citizens.
• Customers in the NRE or NRO category cannot invest in the scheme.
• Only individuals can apply for the scheme. Trusts and societies are ineligible.

How to Apply for SBI Annuity Scheme?

If you meet the eligibility criteria, you can go ahead and apply for this scheme. All you need to do is visit the branch of SBI (preferably one that is in close proximity to your house), fill in all the necessary details in appropriate form and submit it at the counter.

Along with the form, you will need to attach the identity and address proof. Once the form gets approved, you must make the deposit under the scheme. Quite simple, right?

Conclusion

Annuity Deposit Scheme of SBI is a one-time lump sum investment scheme that allows investors to receive a fixed amount at regular monthly intervals for a predetermined period, along with interest on the deposited amount. It provides investors with a monthly source of income, and comes with a tenure of 36 months (3 yrs), 60 months (5 yrs), 84 months (7 yrs) or 120 months (10 yrs). One can invest as little as Rs. 1000 in the scheme, with no upper limit on the maximum deposit amount. 

Frequently Asked Questions (FAQs)

Q1. Can you invest in the SBI annuity scheme on a monthly basis?

No, the scheme requires investors to make a one-time lump sum deposit.

Q2. What is the tenure of the annuity scheme of SBI?

The tenure of the scheme is 36 months (3 yrs), 60 months (5 yrs), 84 months (7 yrs) or 120 months (10 yrs).

Q3. How often is the annuity deposit scheme’s installment paid?

It is paid out on a monthly basis.

Q4. Are minors eligible for the annuity scheme SBI?

Yes, the minors are eligible for the annuity scheme of SBI as long as they are resident Indian citizens.

Q5. What is the minimum deposit amount for the annuity scheme of SBI?

The minimum deposit amount for the scheme is Rs. 1,000. However, there’s no limit on the maximum amount one can deposit under the scheme.

Disclaimer :- Registrationkraft does not guarantee the full accuracy or timeliness of the information provided and shall not be held responsible for any revisions made by SBI. The interest rates for the SBI Annuity Scheme are subject to change from time to time. We recommend our readers to check SBI’s official website or visit the bank’s nearest branch for the latest details regarding the scheme and the applicable interest rates.