New Delhi (Business Desk) State Bank of India offers a variety of savings schemes, where monthly income is available for regular time on investment in Anuity. In the annuity payment the interest on deposits from the customer is started after a fixed period of time.
In this scheme, minimum 1000 rupees can be invested for Monthly Annuity which is 25 thousand rupees, there is no limit to maximum investment. An annuity deposit can be done for a period of 36/60/84 or 120 months. The interest rate on these deposits will be applicable to the term deposit of the term chosen by the depositor. Suppose if you want to deposit annuity for 5 years, the depositor will be given an interest rate of 5 years on the FD.
In the event of the death of the depositor, clearance is allowed before time. With this, loan amount can be taken up to 75% of the amount deposited in Annuity. If you choose a loan option, the future annuity payment will be credited to the loan account until the full loan amount is returned.
If you want a Monthly Annuity of Rs 10,000 for 5 years, according to the interest rate of 7 per cent you will have to deposit 507,965.93 in Annuity Deposit.
How Annuity is different from RD: Annuity Deposit is opposite of RD. In RD, the depositor deposits a fixed amount every month and receives a certain amount on maturity. But in the case of annuity deposits is exactly opposite. Here the depositor deposits together and gets a fixed amount every month for the whole term.
How different from Anuity FD: In case of FD, the depositor deposits simultaneously for a specific tenure such as 1 year, 2 years, 5 years or 7 years etc. The amount, along with the interest on maturity, gets back together.