SBI Fixed Deposit Monthly Income Scheme

Updated on Aug 17, 2020

Overview

State Bank of India (SBI) is India's largest working bank when it comes to total assets and market capitalization, and it has the headquarters in Mumbai, Maharashtra, India. Established by the name of Bank of Calcutta in the year 1806, State Bank Of India (SBI) is a multinational, public-sector bank. State Bank of India has more than 24000 branches and opens new branches every day. 

The bank has a lot of customers who have their savings account in the bank. Today we are going to tell you about the Fixed Deposit Monthly Income Scheme of the State Bank of India. 

Background

This scheme is made for those people who wish to get a fixed monthly income. The State Bank Of India (SBI) Annuity Deposit Scheme will help you in converting your savings into monthly income support. Under this scheme, the depositors can put a one-time lump sum deposit, and then they can get a monthly income from that. 

Once the deposit has been made, the customer will get a fixed amount in the form of Equated Monthly Installments (EMIs). You will receive your deposits, which will include your interests earned in the way of a monthly instalment.

Once you open the account, one month later, you will start receiving the interest on the same start date. For example, when you open an Annuity Deposit Scheme account on 1st January, then you will start receiving your payments from the bank's end on 1st February. 

Minimum And Maximum Deposit Amount

  • The minimum amount required to open an account under this scheme is Rs 25000. 
  • There is no maximum deposit amount required under this scheme. 

Interest

  •  For deposits that have a maturity period of 1-10 years, the rate of interest provided by the bank is 5.9 per cent. 
  • For deposits that have a maturity period of 6 months-1 years, the rate of interest provided by the bank is 5.5 per cent. 
  • For the senior citizens of the country, the deposits that have a maturity period of 1-10 years, the rate of interest provided by the bank is 6.4 per cent.   

Features Of State Bank Of India (SBI) Annuity Deposit Scheme

  • The customers get an option to choose the maturity period of the scheme, which is three years, five years, seven years, and ten years. 
  • The person receives a loan or an overdraft facility which goes up to 75% of the balance amount of their scheme. 
  • Prepayment of the total amount is only done in the case of death of the depositor, under the State Bank Of India (SBI) Annuity Deposit Scheme. 

Benefits

  • Once the Fixed Deposit gets matured, the investors get the opportunity to earn an interest in the form of a lump-sum amount. 
  • Spouse or the children can be nominated as one's beneficiaries of the Fixed Deposit. 
  • A competitive rate of interest is provided on the Fixed Deposits.
  • On specific schemes that are applicable, Auto-renewal facilities are provided. 
  • Senior citizens get additional interest on the investments of their Fixed Deposit.

Eligibility Criteria

You must satisfy any of these to be eligible under this scheme:

  • A resident individual
  • If you are an NRI, then you must have an NRE or NRO account
  • If you are a minor, then your parent or your guardian must act as a co-signatory. 
  • Partnership Firm
  • You can be a member of the Hindu Undivided Family
  • Societies, clubs, and agencies
  • Sole proprietorship business
  • Educational and charitable institutes

Documents Required

Photograph Identification

  • Your Aadhaar card
  • Your Passport 
  • Your Voter ID 
  • You're Driving license etc. 

Residence Proof

  • Your Aadhaar Card
  • Your Passport
  • Your Utility Bills
  • Your Driver's License etc.

Age Proof In Case Of a Senior Citizen And A Minor Investor

  • Your Birth Certificate
  • Your Matriculation Certificate
  • Your Senior Citizen ID etc.

Other Documents

  • Your Bank Account Details along with a cheque
  • Your Passport Size Photographs

Terms And Conditions for Premature Withdrawal.

  • Depending upon the total value of your investment, premature withdrawal can lead to a reduction in the interest rate. 
  • A deduction of 0.5% on the interest rate will be made if the deposits made by the investor are less than Rs. 5 lakhs. 
  • A deduction of 1% on the interest rate will be made if the deposits made by the investor are more than Rs. 5 lakhs. 

Particular Forms

  • If you are a non-senior citizen and your interest earnings are less than Rs. Forty thousand for a financial year, then, by filling Form 15G, you will be applicable to receive TDS exemptions. 
  • By filing Form 15H, the investors who are senior citizens can get TDS exemptions on their interest earnings, if they are up to Rs. 50,000 in a financial year. 

Official Website

Go to the Online Portal for more details.

Frequently Asked Questions

Q. What is SBI's Annuity Deposit Scheme? 

This scheme is made for those people who wish to get a fixed monthly income. The State Bank Of India (SBI) Annuity Deposit Scheme will help you in converting your savings into monthly income support. Under this scheme, the depositors can put a one-time lump sum deposit, and then they can get a monthly income from that. 

Q. How to process the State Bank Of India's online fixed deposit investment?

To proceed with SBI's online fixed deposit investment, go to their official website, click on the Fixed Deposit option, and then do everything according to the steps given. 

Q. What is the percentage of the highest interest rate which is provided by SBI in their Fixed Deposit Schemes?

For a non-senior citizen, the highest rate of interest provided is 6.10 per cent per year. For a senior citizen, the highest standard of interest offered is 6.60 per cent per year.

The highest FD rate is 6.10% per annum for non-senior citizen investors and 6.60% per year for senior citizen investors.

Q. What are the terms and conditions under the Annuity Deposit scheme, in terms of premature withdrawal?

  • Depending upon the total value of your investment, premature withdrawal can lead to a reduction in the interest rate. 
  • A deduction of 0.5% on the interest rate will be made if the deposits made by the investor are less than Rs. 5 lakhs. 
  • A deduction of 1% on the interest rate will be made if the deposits made by the investor are more than Rs. 5 lakhs. 

Q. What is the rate of interest received by a non-senior citizen, under the Annuity Deposit Scheme?

  • For deposits that have a maturity period of 1-10 years, the rate of interest provided by the bank is 5.9 per cent. 
  • For deposits that have a maturity period of 6 months-1 years, the rate of interest provided by the bank is 5.5 per cent. 

Q. What is the rate of interest received by a senior citizen, under the Annuity Deposit Scheme?

For the senior citizens of the country, the deposits that have a maturity period of 1-10 years, the rate of interest provided by the bank is 6.4 per cent. 

Q. What is the maximum maturity period under the Annuity Deposit Scheme?

The maximum maturity period for the Annuity Deposit Scheme is ten years.

Q. What is the minimum and the maximum deposit amount under the State Bank Of India (SBI) Annuity Deposit Scheme?

The minimum amount required to open an account under this scheme is Rs 25000. There is no maximum deposit amount required under this scheme. 

Q. I am a minor. Am I eligible to invest under SBI's Annuity Deposit Scheme?

Yes, you can, but If you are a minor, then your parent or your guardian must act as a co-signatory. 



WRITTEN BYVarsha Verma

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