SBI Annuity Deposit Scheme: Details that you should be aware of

SBI or State Bank of India offers annuity deposit account, which is a variant of fixed depositor term deposit. This account enables the depositor to pay a one-time lump sum amount and receive the same in equated monthly instalments (EMIs), comprising a part of the principal amount as well as interest on the reducing principal amount, according to the bank’s website – The amount is compounded at quarterly basis and discounted to the monthly value, said the country’s largest lender.

Key Highlights of SBI’s annuity deposit account:

  1. Under SBI’s scheme, the minimum amount of deposit is Rs.25,000. However, there is no maximum limit of deposit amount for this scheme. A nomination facility is applicable in SBI’s annuitydeposit account.
  2. A term of 36 months, 60 months, 84 months or 120 months (3 years, 5 years, 7 years or 10 years) is available for SBI’s annuity deposit account scheme.
  3. The rate of interest charged is same as applicable to the fixed deposit account of the term opted by the depositor. The following FD interest rates are for deposits below Rs. 1 crore:
Tenors For Public w.e.f. 28.11.2018 For Senior Citizens w.e.f. 28.11.2018
3 years to less than 5 years 6.8 % 7.3 %
5 years and up to 10 years 6.85 % 7.35 %


  1. Under this kind of fixed deposit account, premature payment is permitted only in case of death of depositor.


  1. Overdraft/loan up to 75 per cent of the balance amount of annuity can be granted on special cases, according to SBI’s website. After disbursal of /loan, further annuity payment is deposited in loan account only.



Author: Arindam Saha


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