The State Bank of India, the country’s largest government bank, offers various savings and deposit schemes tailored to its customers’ needs.
One option is the Annuity Deposit Scheme, which provides a steady income through a monthly pension.
Participating in this scheme allows individuals to receive a monthly pension, making it especially beneficial for retirees.
The scheme offers competitive interest rates, with 7 percent for general customers and 7.50 percent for senior citizens.
Upon joining the SBI Annuity Deposit Scheme, you can receive consistent monthly returns for ten years. The maturity period can range from 3 to 10 years, providing flexibility for individual preferences.
Participants will receive monthly payments depending on the deposited amount and chosen maturity tenure. The tenure options include 36 months, 60 months, 84 months, and 120 months.
Under this scheme, participants can receive a monthly pension ranging from a minimum of Rs.1000 to a maximum of Rs. However, the exact amount depends on the initial investment.
This annuity plan requires a lump sum investment. It also offers an overdraft facility of up to 75 percent of the investment amount.
For example, if Rs.10 lakh is deposited with a 10-year tenure, the monthly pension would amount to Rs.11,870. Initially, the bank will pay Rs.6250 as the first month’s interest and Rs.5620 from the principal.
The investment will be fully utilized by the end of the tenure, during which the bank will pay interest and a portion of the principal.
Moreover, by investing in this scheme, participants can benefit from tax exemptions under Section 80TTB of the Income Tax Act 1961.