SBI Annuity Deposit Scheme - Interest Rates, Eligibility and Features
The SBI Annuity Deposit Scheme allows investors to earn predictable monthly income by depositing a lump sum with State Bank of India. Under this scheme, SBI repays the principal along with interest in fixed monthly instalments, making it suitable for retirees and investors seeking stable cash flow.
Key Highlights
- Deposit: Investors make a one-time lump sum deposit.
- Repayment: Monthly payments include both principal and interest.
- Tenure: Investment periods range from 3 to 10 years.
- Interest: Interest is compounded quarterly, with higher rates for senior citizens.
- Loan: Loan or overdraft facility is available up to 75% of the annuity balance.
What is SBI Annuity Deposit Scheme?
SBI Annuity Deposit Scheme requires customers to deposit a one-time lump-sum amount to the bank.
- The SBI will repay this amount periodically as Equated Monthly Installments.
- These EMI amounts comprise a portion of the principal amount and interest. The interest compounds quarterly, and discounts returns monthly.
- Also known as monthly annuity instalments, this scheme allows customers to invest for tenures of 3, 5, 7, or 10 years (36, 60, 84, or 120 months).
Features of the SBI Annuity Deposit Scheme
The Features of the SBI Annuity Deposit Scheme are as follows:
- Access: Invest through any SBI branch in India.
- Minimum: Deposit depends on a minimum ₹1,000 monthly annuity payout.
- Maximum: No upper limit on deposits.
- Nomination: Nominees can receive benefits in your absence.
- Returns: Lump sum deposit with monthly principal and interest payouts.
- Payment: Returns for non-existent dates are paid on the 1st of the next month.
- Passbook: A universal passbook is provided for the scheme.
- Tenure: Choose from 36, 60, 84, or 120 months.
- Loan: Overdraft/loan facility up to 75% of the deposit balance.
- Closure: Premature closure allowed up to ₹1.5 crore with penalties; no limit or penalty for heirs after death.
SBI Annuity Deposit Scheme Interest Rate
The table below displays SBI Annuity Deposit scheme interest rates for 2026:
| Tenure | General Public (p.a.) | Senior Citizens (p.a.) |
| 1 year to 2 years | 6.80% | 7.30% |
| 2 years to 3 years | 7.00% | 7.50% |
| 3 years to 5 years | 6.75% | 7.25% |
| 5 years to 10 years | 6.50% | 7.50% |
Note: Interest rates are indicative and subject to change as per SBI guidelines.
Eligibility for the SBI Annuity Deposit Scheme
The eligibility criteria define who can invest in the SBI Annuity Deposit Scheme.
- Resident Indian individuals are eligible to invest.
- Minors can invest through a guardian.
- Joint accounts are permitted.
- Non-resident Indians (NRIs) are not eligible for this scheme.
How is the SBI Annuity Deposit Calculated?
The formula to calculate SBI Annuity Deposit monthly income is as follows:
A = P (1+r/n) ^ (n * t)
where,
A= Maturity amount
P= Principal amount
R= Rate of interest
N= number of times the interest will compound in a year
T= Total tenure
SBI Annuity Deposit Scheme Example
An investment of ₹5,00,000 for 5 years at 6.50% interest provides a fixed monthly payout of about ₹9,783. Over 60 months, the investor receives approximately ₹5,86,980 in total, including ₹86,980 as interest. The account balance becomes zero at the end of the tenure.
SBI Annuity Deposit Scheme Calculator 2026
The SBI Annuity Deposit Calculator 2026 helps estimate expected monthly income before investing in the scheme.
SBI Annuity vs Other Monthly Income Options
This comparison helps understand how the SBI Annuity Deposit Scheme differs from other regular-income instruments.
| Option | Nature of Payout | Risk Level | Principal Protection |
| SBI Annuity Deposit Scheme | Fixed monthly payout (principal + interest, balance reduces to zero) | Low | Yes |
| Monthly Income FD | Monthly interest payout; principal returned at maturity | Low | Yes |
| Post Office MIS | Monthly interest payout; principal returned at maturity | Low | Yes |
| Mutual Fund SWP | Variable withdrawals linked to market performance | Moderate to High | No |
| Senior Citizen Savings Scheme | Quarterly interest payout; principal returned at maturity | Low | Yes |
Benefits Of The SBI Annuity Scheme
The benefits of the SBI Annuity Deposit Scheme make it a reliable income option for conservative investors.
- The interest rates for this scheme are similar to SBI’s term deposits. Investors can choose the interest rates depending on their investment tenure. Senior citizen investors will receive an additional rate of interest as well.
- The bank will make the full payment in advance in case of the death of the depositor.
- The depositor will receive a loan facility of up to 75% of his/her total amount.
- There is no maximum deposit limit for SBI Annuity scheme deposit.
Final Word
The SBI Annuity Deposit Scheme is a suitable investment instrument for investors seeking regular income over the long term. The interest rates for this scheme are subject to frequent changes; therefore, consider checking the updated interest rate before applying.
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