This SBI Deposit Scheme Gives Higher Return Than Savings Account

The State Bank of India (SBI) is one of the largest public sector lenders offering a variety of schemes for the public. People often find it risky to invest in stocks and Cryptos and thus banks remain the safest option for a sure-shot return. Today, we are going to tell you one such scheme of SBI which can give you safe returns on your investment without high risk.

The SBI Annuity Deposit Scheme offers you a regular return and the interest rate is comparatively higher than the savings accounts and traditional deposit schemes.

Under the SBI Annuity Deposit Scheme an investor needs to deposit a lumpsum amount of money for a fixed period. The total amount with interest is returned to the investor every month in equated monthly installments. Calculation of Interest is done every quarter on the amount deposited in the account on the basis of compounding.

The customers can choose the tenure of their investment. The interest rate ranges between 5% to 6.5% for general customers while the interest rate for the senior citizens varies between 5.5% to 7.5% depending on the total duration of investment.

However, the customers must be aware that as the outstanding principal amount reduces each month, the EMI will have a higher principal refund and the interest amount will keep reducing each month. At the end of the tenure of SBI Annuity Deposit Scheme no amount will be paid to the investor

Payment to the customer will start on the date on which it was deposited in the last month. If the date is non-existent (29th, 30th and 31st in many cases), it will be paid on the 1st day of the next month.

How much money can be deposited?

There is no fixed limit on the maximum deposit in this scheme. But, the minimum deposit will have to be maintained at Rs 1,000 per month. The customer will be issued a Universal Passbook and investments under this scheme can be done for 36, 60, 84 or 120 months period.

An overdraft facility is also available

The scheme also provides an overdraft facility up to 75% of the balance amount in the account.

How to invest in an annuity scheme?

If you want to invest in SBI’s Annuity Deposit Scheme, then you have to register by going to any nearest SBI branch. Once opened, you can also transfer the account under this scheme from one branch to another. Individual nomination facility is available in this scheme. It can be a single or joint holding account. Premature closure of the scheme without charges is allowed in case of death of the depositor.

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