SBI Annuity Deposit Scheme: At a time when equity returns are nosediving due to the Coronavirus impact on the global economy, investors are looking at safe and secure investment havens. To address investors's problems there is one State Bank of India (SBI) plan called SBI Annuity Deposit Scheme that could serve them well as it provides a money making opportunity. In this SBI annuity plan, an investor needs to invest a lump sum amount (not less than Rs 25,000) to create a minimum of Rs 1,000 per month additional monthly income after the maturity period. This monthly income can go upward as there is no cap on the maximum investment. This new source of monthly income can be helpful in a crisis like Coronavirus lockdown, when many employees' jobs are under threat and the main source of income is threatened by pay cuts.

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According to the official website of SBI — onlinesbi.com or sbi.co.in — the biggest feature of SBI Annuity Deposit Scheme is to enable the customers to deposit one time lump sum amount and receive re-payment of the same in monthly annuity installments comprising part of the principal amount plus interest. This SBI annuity scheme is ideal for people who want to use their savings for additional monthly income generation. There is no maximum limit in this SBI annuity fixed deposit plan but the SBI account holders need to make a minimum deposit of Rs 25,000.

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Period of deposit in this SBI Annuity Plan is for 36, 60, 84 or 120 months, which means one 3 years, 5 years, 7 years or 10 years investment period.

Manikaran Singhal, a SEBI registered tax and investment expert, did the SBI Annuity Scheme calculation and said, "In this SBI Annuity Plan, a fixed amount is provided to the depositor in equated monthly installments (EMIs), which consists of the principal amount along with the interest. Hence, the deposits made by the account holders are returned to them in the form of a monthly installment, with interest. The bank starts paying the interest to the account holder on the same date the account was opened starting next month." 

Singhal said that the SBI annuity plan will fetch same interest rate that the SBI Fixed Deposit interest rate is. For, SBI staff, the SBI Annuity Plan rate of interest is one per cent more. For the senior citizens depositors, there is an additional 0.5 per cent SBI Annuity Plan rate of interest made available by the largest commercial bank in India.

As per information available at onlinesbi.com, premature withdrawal under the SBI annuity deposit scheme is only allowed in the case of the death of the depositor. Among other facilities, depositors get a nomination facility. As a depositor, you also get an overdraft or loan facility of up to 75 per cent of the balance amount of annuity. Once the loan amount has been disbursed, further annuity payment is deposited in the loan account.