If you also want to arrange regular income for yourself in old age, then the Annuity Deposit Scheme of State Bank of India can prove to be very helpful for you.
Money is considered the stick of old age because in old age, when your body is no longer capable of working, then only money comes in handy. If you have money in your hands then you do not need to depend on others for all your needs. If you also want to arrange regular income for yourself in old age, then the Annuity Deposit Scheme of State Bank of India (SBI Annuity Deposit Scheme) can prove to be very helpful for you. Through this scheme, any person can arrange a fixed income for himself every month. After retirement, this scheme can prove to be very beneficial for the elderly.
What is SBI Annuity Deposit Scheme
According to the information available on the SBI website, in the SBI Annuity Deposit Scheme, you have to deposit a lump sum amount and the depositor is given interest along with a part of the principal amount every month. This interest is equal to the bank’s term deposit i.e. FD. Interest is calculated on compounding every quarter based on the amount remaining in the account. Any Indian citizen can take advantage of this scheme.
How much amount can be deposited
In Annuity Deposit Scheme, money is deposited for 36, 60, 84 or 120 months, which means you can arrange income for a maximum of 10 years through this scheme. Whatever interest rate is applicable on fixed deposits for the tenure for which you have deposited the amount, the same will be applicable in this annuity deposit scheme. There is no limit on maximum deposit in this. Annuity payment is decided according to the deposited amount. Annuity starts being received from the scheduled date of the next month of deposit. After depositing the amount, you are issued a universal passbook.
Interest for senior citizens
Under SBI Annuity Deposit Scheme, you can open both single and joint accounts. Annuity payment is credited to the linked savings account or current account after deducting TDS. In this, interest is given to common customers and senior citizens only on the basis of term deposit. SBI gives 0.50 percent more interest to senior citizens than general customers.
Loan facility also
You also get loan facility in SBI Annuity Deposit Scheme. If needed, one can get overdraft/loan up to 75 percent of the balance in the account. But after taking the loan, the annuity payment will be credited to the loan account. Apart from this, you get the facility of premature withdrawal. In this, premature payment is allowed for deposits up to Rs 15,00,000.
If you have deposited more than Rs 15 lakh, then after withdrawal of up to Rs 15 lakh, the remaining amount will remain deposited in the account and you will continue to get annuity in return. The same rules regarding penalty are applicable as are applicable to FD. However, in case of death of the account holder, the entire amount can be withdrawn by the nominee.
