SBI Annuity Deposit Scheme: Who all can invest in the monthly income scheme, what happens on premature closure?

In times of massive layoffs, people are looking for trusted good investment plans that can guarantee regular and fixed monthly income. One such scheme is offered by the State Bank of India. Known as the SBI Annuity Deposit Scheme, offers guaranteed returns. 

As per the scheme, investors have to deposit a one-time amount after which they get a re-payment of the same in monthly annuity instalments having parts of the principal amount and interest on the reduced principal amount, compounded at quarterly rests and discounted to the monthly value.

Simply put, you pay the bank a certain amount and it repays you on a monthly basis with interest on the invested amount. 

Read: SBI Annuity Deposit Scheme: Get monthly payment in this SBI scheme, know interest rate, features, eligibility

SBI Annuity Deposit scheme: Who can invest?

Any resident individuals including minors can invest in the SBI Annuity Deposit Scheme. The mode of holding can be done both singly or jointly. Customers of SBI can take advantage of the SBI Annuity Deposit scheme for a deposit period of 3, 5, 7 and 10 years. The scheme is available at all branches of the SBI.

SBI Annuity Deposit scheme: Premature closure

The bank permits a premature closure of the SBI Annuity scheme without any limit only in case of the subscriber’s death. A premature payment for a deposit of up to Rs 15 lakh is also allowed. A penalty is chargeable as applicable to Term Deposits.        

SBI Annuity Deposit scheme: Facility for Loan

Overdraft or loans of up to 75 percent of the annuity balance is allowed for special cases.