State Bank of India (SBI), the country’s largest and most trusted bank, runs many great investment schemes for its customers. One of these is the SBI Annuity Deposit Scheme, which is specially designed for those who want a fixed income every month after retirement. This scheme keeps your investment safe as well as gives regular monthly income.
What is SBI Annuity Deposit Scheme?
This scheme is just like a fixed deposit (FD). In this, you deposit some money at once and then the bank gives you its installments every month with interest. This scheme is for 3, 5, 7 or 10 years, and the interest rate on it is the same as that on FD. The best part is that you can start investing with just ₹ 1,000.
Higher interest than savings account
SBI Annuity Deposit Scheme offers higher interest than savings account. This interest rate is equal to the FD interest rate at the time you opened the account, and it remains the same throughout the tenure. Apart from this, senior citizens get 0.50% more interest.
Example: Earning ₹12,000 every month
If you invest ₹10 lakh in this scheme and the interest rate is 7.5%, you will get around ₹11,870 every month. This is a great way to earn regular income after retirement.
How to open an account?
Opening an account in SBI Annuity Deposit Scheme is very easy:
You can go to any SBI branch and fill the form.
You can also open an account through online banking.
To avail this scheme, you must have an SBI savings account.
Frequently Asked Questions (FAQs)
Question 1: Is this scheme completely safe?
Answer: Yes, this scheme of SBI is completely safe, because it comes under banking rules.
Question 2: Is there any special benefit for senior citizens?
Answer: Yes, senior citizens get 0.50% more interest than other investors.
Question 3: Can this scheme be closed midway?
Answer: No, this scheme cannot be closed prematurely. Yes, the bank can allow it in certain circumstances.
So what are you waiting for? If you want a fixed income every month after retirement, then SBI Annuity Deposit Scheme is a great option for you.