SBI Update: In this scheme of SBI, you earn every month, and you get these benefits, Know details..
SBI Scheme: The country's largest bank SBI offers a special scheme to its customers. In this, by depositing lump sum money, you get guaranteed earnings along with interest every month. This scheme is the SBI Annuity Deposit Scheme. According to SBI, when depositors deposit a lump sum amount, they earn every month in the form of principal along with interest in equal monthly installments (EMI). Interest is calculated based on compounding every quarter on the amount remaining in the account.
Interest is available like SBI FDs
According to the SBI website, you can deposit in the SBI Annuity Deposit Scheme for 36, 60, 84 or 120 months. This scheme is available in all branches of SBI. You can deposit as much as you want in it. However, the minimum deposit will have to be at least Rs 1000 as per monthly annuity. Talking about the interest available in the scheme, the interest available on SBI Term Deposit i.e. FD is also available to the customers of this scheme.
When will be the earliest pre-closure?
In case of the death of the depositor in the SBI Annuity Deposit Scheme, the scheme can be closed prematurely. Apart from this, premature payment can also be made on deposits up to Rs 15 lakh. However, the pre-mature penalty has to be paid in this. The penalty rate is charged on the FD rate of the bank. This account can be single or joint holding. Under this scheme of SBI, one can get an overdraft/loan up to 75 percent of the annuity balance amount as per requirement.
Take care of tax liability
Annuity payment in the SBI Annuity Deposit Scheme will be made from the scheduled date in the next month of the deposit. If that date is not there in any month (29, 30, and 31), then the annuity will be received on a date of the next month. Annuity payment will be credited to the linked savings account or current account after deducting TDS.
Individual nomination facilities are available in the scheme. A universal passbook will also be issued to the customer. The account of the scheme can be transferred from one branch of the bank to another.
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