SBI Annuity Deposit Scheme 2025 – A Safe Investment for Guaranteed Monthly Income

SBI Annuity Deposit Scheme 2025 – A Safe Investment for Guaranteed Monthly Income

When it comes to safe and reliable investments in India, government-backed banks are always a preferred choice. Among these, the State Bank of India (SBI) offers a unique product for individuals who want to convert their savings into a fixed monthly income – the SBI Annuity Deposit Scheme This plan is especially useful for retirees, salaried employees, parents supporting children, and anyone who wishes to enjoy financial security through steady cash flow. With just a one-time deposit, you can receive monthly payouts that include both the invested principal and interest. In this article, we’ll explain what the SBI Annuity Deposit Scheme is, who should invest in it, the latest 2025 interest rates, and the pros and cons of this plan.

What is the SBI Annuity Deposit Scheme?

The SBI Annuity Deposit Scheme is a fixed-return investment plan where you deposit a lump sum amount for a chosen tenure. Instead of waiting for maturity, you receive the deposit back every month in equal installments. Each installment consists of:

In simple terms, it works like a pension plan or monthly salary scheme, making it an attractive option for risk-averse investors.

Who Should Consider This Scheme?

This plan is suitable for:

  • Retirees: Provides a pension-like income after retirement.

  • Parents with children studying away from home: Helps in sending a fixed monthly allowance instead of a lump sum.

  • Individuals with savings: A safe option compared to market-linked investments.

  • Joint investors: Couples or family members can invest together for household expenses.

Key Features of SBI Annuity Deposit Scheme

  • One-time investment: Deposit once, enjoy regular income.

  • Eligibility: Any Indian citizen with an SBI account can invest.

  • Minimum deposit: ₹25,000

  • Maximum deposit: No upper limit

  • Tenure options: 3, 5, 7, or 10 years

  • Monthly payouts: Both principal + interest included

  • Loan facility: Up to 75% of deposit can be availed as loan

  • Nomination: Available

  • Tax treatment: Interest is taxable, though exemptions may apply if invested under Section 80C

Interest Rates in 2025

SBI has updated its interest rates for 2025 as follows:

Tenure Regular Citizens Senior Citizens SBI Staff
3 – 5 Years 5.30% 5.90% 6.40%
7 – 10 Years 5.40% 5.90% 6.40%

👉 Interest is compounded quarterly and paid along with the principal in monthly installments.

Example of Monthly Returns

To understand better, here are estimated payouts:

  • Deposit ₹1,00,000 for 3 years → Monthly payout approx. ₹3,259

  • Deposit ₹2,00,000 for 3 years → Monthly payout approx. ₹6,451

  • Deposit ₹3,00,000 for 3 years → Monthly payout approx. ₹9,677

The higher your deposit, the larger your monthly income.

Benefits of SBI Annuity Deposit

  • 100% safety: Backed by India’s largest public-sector bank.

  • Guaranteed cash flow: Ideal for monthly household expenses.

  • Flexible tenures: Choose between 3–10 years.

  • Loan option: Helpful during emergencies.

  • Senior citizen advantage: Higher interest rates.

  • Simple application: Available both online and offline.

Drawbacks of the Scheme

  • No liquidity: Funds are locked until maturity (except loan facility).

  • Taxable income: Interest is taxed as per income slab.

  • Moderate returns: Lower compared to equity or mutual fund investments.

How to Apply for SBI Annuity Deposit

Offline Process

  1. Visit the nearest SBI branch.

  2. Request the Annuity Deposit Scheme form.

  3. Fill in details like deposit amount, tenure, nominee, etc.

  4. Submit KYC documents (PAN, Aadhaar, address proof).

  5. Deposit the chosen amount.

Online Process

  1. Log in to SBI Net Banking.

  2. Navigate to Deposit Schemes.

  3. Select Annuity Deposit Scheme.

  4. Enter investment amount and tenure.

  5. Confirm payment online.

Who Should Avoid This Scheme?

  • Young investors seeking higher returns.

  • Individuals needing liquidity, since premature withdrawal isn’t allowed.

  • People in higher tax brackets, as interest is fully taxable.

Conclusion

The SBI Annuity Deposit Scheme 2025 is a safe and reliable option for those who want guaranteed monthly income without taking risks. It is best suited for retirees, parents, and conservative investors who prefer stability over high returns. With benefits like steady payouts, loan facility, and complete security, this plan provides peace of mind and financial comfort.

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