Interest rate, eligibility other details

State Bank of India (SBI) offers the Annuity Deposit Scheme wherein customers deposit a lumpsum amount with the bank receive monthly instalments. The scheme is transferrable between SBI branches. As per SBI official website, a fixed amount is provided to the account holder in equated monthly instalments (EMIs). The EMIs comprises a part of the principal amount as well as interest on the reducing principal amount, compounded at quarterly rests discounted to the monthly value.

Here is all you need to know about SBI Annuity Deposit Scheme


A person should be a resident individual which could include a minor. The mode of holding could be jointly or single. Anyone falling into the category of NRE NRO cannot access this facility.

Deposit amount

Customers are required to deposit a minimum of â‚ą25,000 in the SBI annuity deposit scheme. However, there is no maximum limit.


Maturity options of 3 years, 5 years, 7 years 10 years are available under the SBI annuity deposit scheme.

Rate of interest

The rate of interest is the same as applicable to the term deposits/fixed deposits of tenure as opted by the depositor. Let’s say you make a fund deposit for five years, then you will get the interest-only according to the interest rate applicable to the fixed deposit of five years. At present, SBI gives a 5.40 % interest rate on deposits maturing in five to 10 years. For FDs maturing in three to less than five years, SBI offers an interest rate of 5.30%.

Rate of interest for senior citizens

Like FDs, senior citizens will get 50 basis points (bps) above the applicable rate in the SBI annuity scheme. The interest rate payable to SBI Staff SBI pensioners will be 1% above the applicable rate.

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