Teji Mandi: Three things investors should know on August 17th, 2020
Teji Mandi: Three things investors should know on August 17th, 2020

State Bank of India (SBI) offers Annuity Deposit facility to enable the depositor to pay one-time lump sum amount and to receive the same in Equated Monthly Instalments (EMIs), comprising a part of the principal amount as well as interest on the reducing principal amount, compounded at quarterly rests and discounted to the monthly value.

It gives the option to the customer to deposit a lump sum amount, which is repaid to the over a period in equated monthly instalment (EMI).

Who is eligible?

The SBI annuity deposit scheme can be opened by all residents, including minors.


  • Period of deposit from 36/60/84 or 120 months.

  • Available at all branches (except specialized credit intensive branches) all over India.

  • Payment of annuity On the anniversary date of the month following the month of deposit.

  • If that date is non-existent (29th, 30th & 31st), it will be paid on the 1st day of the next month.

  • Annuity payment, net of TDS, will be credited to linked SB/CA account.

  • Nomination is Available.

  • Overdraft/loan up to 75% of the balance amount of annuity may be granted on special cases.

  • After disbursal of OD/loan, further annuity payment will be deposited in loan account only.

  • Universal Passbook is issued.

  • Transferability among our branches Allowed.

Minimum and maximum limit

  • Amount Based on minimum monthly annuity Rs 1000/- for the relevant period.

  • In no case the Minimum Amount of deposit should be below Rs. 25,000/-

  • Maximum deposit amount No Limit.

Interest Rate

  • Rate of interest as applicable to Term Deposits.

  • The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate.

  • The rate applicable to all Senior Citizens of age 60 years and above will be 0.50% above the applicable rate.

Tenure and maturity

  • Premature closure is Permitted in case of death of the depositor.

  • Premature payment is also allowed for deposits up to Rs. 15.00 lacs.

  • The annuity deposit scheme is available for 36 months, 60 months, 84 months and 120 months, according to SBI.

  • The premature penalty is chargeable as applicable to Term Deposit.

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