State of India (SBI) offers various deposit scheme accounts under it’s personal finance portfolio. SBI’s deposit scheme ranges from fixed deposit (FD) scheme to recurring deposit (RD) scheme, from tax savings scheme to multi option deposit scheme, among others. The lender has a plenty of schemes to choose from when it comes to picking a fixed deposit (FD). SBI’s annuity deposit account is also a type of fixed deposit (FD) account that enables the depositor to pay 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, compounded at quarterly rests and discounted to the monthly value, said SBI.
Here are key things to know about SBI’s annuity deposit account which is a part of Fixed Deposit account:
1. Under SBI’s annuity deposit account, the minimum amount of deposit is Rs. 25,000. There is no maximum limit of deposit amount for this scheme. Nomination facility is applicable in SBI’s annuity deposit account.
2. The tenure of SBI’s annuity deposit account scheme can be chosen from 36 months, 60 months, 84 months or 120 months (three years, five years, seven years or ten years).
3. The rate of interest charged is same as applicable to the fixed deposit account of the tenure as opted by the depositor. SBI revised interest rates on retail fixed deposits with effect from 30th July, 2018. The following FD interest rates are for deposits below Rs. 1 crore:
|Term||Interest rate for general public w.e.f. 30.07.2018||Interest rate for senior citizen w.e.f. 30.07.2018|
|3 years to less than 5 years||6.8||7.3|
|5 years and upto 10 years||6.85||7.35|
4. Under this kind of fixed deposit account, premature payment is permitted only in case of death of depositor.
5. Overdraft/loan up to 75 per cent of the balance amount of annuity can be granted on special cases, stated SBI. After disbursal of /loan, further annuity payment is deposited in loan account only.