SBI Annuity Deposit Scheme Calculator

Planning for a steady monthly income? The SBI Annuity Scheme Calculator makes it simple to see how your lump sum investment can turn into a reliable source of earnings. Whether you’re preparing for retirement or looking for guaranteed monthly payouts, this easy-to-use tool precisely estimates how much you'll receive each month, thus combining both principal and interest. It's a smart way to confidently plan your finances and ensure peace of mind for the future.

What Is SBI Annuity Deposit Scheme Calculator?

The SBI Annuity Deposit Scheme Calculator is a handy tool that helps you estimate the fixed monthly payouts you’ll receive by investing a lump sum under the State Bank of India Annuity Deposit Scheme. In this scheme, a one-time deposit is repaid by the bank through monthly instalments that include both the principal and interest components. Interest is compounded quarterly and adjusted to reflect a monthly payout. 

These monthly payments, also known as annuity instalments, are made over a chosen tenure of 3, 5, 7, or 10 years. The calculator simplifies financial planning by showing you exactly how much you can expect to receive every month, helping you make informed investment decisions.

How To Use Cleartax SBI Annuity Deposit Scheme Calculator?

Follow the steps given below to use the Cleartax SBI Annuity Deposit Calculator: 

• Enter the lump sum investment amount. 
• Enter the desired tenure.
• Select the age category. 

The calculator will automatically display the monthly annuity amount along with monthly interest applicable on the same. 

Formula For SBI Annuity Deposit Scheme Calculation

The SBI Annuity payment can be calculated using the formula :

A = P (1+r/n) ^ (n * t)

Where, 

• A = Monthly annuity payment
• P = Principal amount
• r = Monthly interest rate (annual rate / 12)
• n = Total number of payments (months)

Example For SBI Annuity Deposit Scheme

Let us assume the following scenarios to understand how SBI’s Annuity Deposit Scheme works. 

• Investment Amount: ₹10,00,000
• Tenure: 1 year (12 months)
• Interest Rates:
  
  • General Category: 6.50% p.a.
  • Senior Citizens: 7.00% p.a.

SBI pays a fixed annuity amount every month, consisting of both principal + interest. Let's calculate for both categories.

General Category (6.50% Interest)

Monthly Annuity: ₹19,600 (assumed as fixed, for example)
Interest Rate: 6.5% p.a. → 0.5417% monthly

Month 1:

• Interest: ₹10,00,000 × 6.5% ÷ 12 = ₹5,417
• Principal Repaid = ₹19,600 – ₹5,417 = ₹14,183
• Remaining Principal = ₹10,00,000 – ₹14,183 = ₹9,85,817

Month 2:

• Interest: ₹9,85,817 × 6.5% ÷ 12 = ₹5,348
• Principal Repaid = ₹19,600 – ₹5,348 = ₹14,252
• Remaining Principal = ₹9,85,817 – ₹14,252 = ₹9,71,565

Senior Citizen Category (7.00% Interest)

 Assumed Monthly Annuity: ₹19,800 (slightly higher due to better interest)
Interest Rate: 7.0% p.a. → 0.5833% monthly

Month 1:

• Interest: ₹10,00,000 × 7.0% ÷ 12 = ₹5,833
• Principal Repaid = ₹19,800 – ₹5,833 = ₹13,967
• Remaining Principal = ₹10,00,000 – ₹13,967 = ₹9,86,033

Month 2:

• Interest: ₹9,86,033 × 7.0% ÷ 12 = ₹5,752
• Principal Repaid = ₹19,800 – ₹5,752 = ₹14,048
• Remaining Principal = ₹9,86,033 – ₹14,048 = ₹9,71,985

The fixed monthly annuity of ₹19,600 for general investors and ₹19,800 for senior citizens includes interest and principal. As the principal reduces over time, the interest component decreases while the principal repaid increases, ensuring the full ₹10,00,000 is returned by the end of the tenure. 

SBI Annuity Deposit Scheme Interest Rates 2025

Eligibility Criteria For SBI Annuity Deposit Scheme

You must meet the following eligibility criteria to qualify for the SBI Annuity Deposit Scheme: 

• Eligibility: Only resident Indian citizens can apply.
• Account Holders: Both individuals and minors can open the account.
• Account Type: Can be held singly or jointly.
• Not Eligible: NRE and NRO account holders are excluded from this scheme.

Benefits Of SBI Annuity Deposit Scheme Calculator 

Key benefits of the SBI Annuity Deposit Scheme include the following: 

• Steady Monthly Payouts: Ideal for retirees, the scheme ensures a fixed monthly income.
• Reliable Investment: Being an SBI-backed product, it offers safety and stability.
• Loan Facility: Loans or overdrafts can be availed against the annuity, adding financial flexibility.
• Deferred Taxation: Interest is taxed only when the payouts begin, offering tax planning advantages.
• Deposit Protection: Deposits are insured up to ₹5 lakhs under DICGC regulations.
• Flexible Investment Size: No upper limit on deposits, allowing you to invest as per your needs.
• No Extra Charges: The scheme doesn’t levy any premiums or hidden fees.
• Branch Access: Available at all SBI branches with the option for easy branch transfer.
• Senior Citizen Perks: Seniors may enjoy additional benefits like higher interest rates.

Factors Affecting SBI Annuity Deposit

Several key factors influence the annuity payouts under the SBI Annuity Deposit Scheme:

Deposit Amount and Interest Rate

• Higher deposit amounts result in larger monthly payouts.
• The interest rate at the time of investment plays a crucial role—higher rates lead to higher annuity income.
• Interest rates generally align with SBI’s term deposit rates and vary depending on the selected tenure.

Annuity Type and Payout Frequency

• The type of annuity (such as single or joint life) affects the payout structure.
• You can choose how often you want to receive payments—monthly, quarterly, etc.
• In joint annuities, payments may continue to a surviving partner after the primary holder’s demise.

Demographic Factors

• Older individuals typically receive higher payouts due to a shorter expected payout duration.
• Some annuity plans may also vary the payout based on gender.

Additional Considerations

• Some annuities come with guaranteed income for a fixed period.
• A deferment period may apply before the start of regular payments.
• SBI offers the option of a loan or overdraft against the annuity deposit.
• Annuity income is taxable under current income tax laws.
• Accounts can be transferred between SBI branches for added convenience.

In summary, the SBI Annuity Deposit Scheme provides a secure and assured source of monthly income, which is a good option for individuals who need financial security after retirement. Suppose one understands the factors influencing annuity payouts, such as deposit size, interest rate, age, and payout options. In that case, investors can choose to optimize the scheme in favor of long-term financial objectives.