If you're looking for a safe and reliable way to receive monthly income without the uncertainty of market-linked investments, the State Bank of India's Annuity Deposit Scheme might be just what you need. It offers a steady monthly return, similar to a pension, from a one-time lump sum investment.
Let's explore how this plan works, who can benefit, and how you can start earning up to ₹11,000 or more every month for up to 10 years.
The SBI Annuity Deposit Scheme is a special fixed-income plan where you deposit a lump sum amount once, and the bank pays you a fixed amount every month. This monthly payout includes both principal and interest components.
It's ideal for:
Retirees looking for regular income
Homemakers with savings
Anyone who wants a guaranteed return without market risk
Key Highlights
|
Feature |
Details |
|
Bank |
State Bank of India (SBI) |
|
Type |
Fixed monthly return plan |
|
Tenure Options |
36, 60, 84, or 120 months (3 to 10 years) |
|
Investment Type |
One-time lump sum |
|
Monthly Returns |
Based on deposit amount and tenure |
|
Overdraft Facility |
Up to 75% of deposit amount |
|
Eligibility |
Indian citizens (individuals, minors, NRIs) |
|
Tax Benefit |
Section 80TTB for senior citizens (Interest income exemption up to ₹50,000/year) |
Here's an example: If you invest ₹10 lakh in the SBI Annuity Deposit Scheme for 10 years, you can earn approximately ₹11,870 per month.
SBI pays interest compounded quarterly but paid monthly.
First month: You get ₹6,250 as interest and ₹5,620 as part of principal.
Every month, the fixed EMI-like amount will be deposited in your account.
After the tenure, the entire deposit amount will be paid out.
Note: Monthly payout reduces interest over time and increases principal return.
Who Can Apply?
Any Indian citizen (individuals or joint holders)
Minors through guardians
NRIs are also eligible (in some branches under NRO account rules)
How to Open This Account?
Visit your nearest SBI branch
Fill the Annuity Deposit application form
Submit KYC documents (Aadhaar, PAN, passport-size photo)
Make the lump sum deposit
Choose your tenure and monthly payout date
You can also inquire via SBI's official website or YONO app for basic info, but account opening must be done at the branch.
✅ Guaranteed Income: No dependence on markets or mutual fund returns ✅ No Monthly Deposits: Invest once, enjoy monthly benefits ✅ Perfect for Senior Citizens: Regular income post-retirement ✅ Flexible Tenures: Choose based on your financial goals ✅ Loan Facility: Avail overdraft up to 75% of deposit, if needed
Interest earned is taxable (TDS may apply if beyond limit)
No premature withdrawal allowed, except in case of death
Monthly payout includes both principal and interest
No reinvestment of interest - it's all paid out monthly
If you're someone who values financial security and monthly income without juggling volatile investments, the SBI Annuity Deposit Scheme is a smart and safe choice. A one-time investment can ensure regular payouts like a pension, making it an ideal solution for peace of mind and predictable returns.