New Delhi. All the banks are raising their interest rates on deposits. In such a situation, the largest government bank in the country, the SBI, has set up a special regime for its customers. In SBI Annuity Deposit Scheme, investors can get a fixed amount each month by investing once.
This scheme is very effective for such investors, who receive a lump sum from retirement or any other scheme. Under this program, SBI will return the fixed amount each month, which will include the money you deposited and the interest earned on it. You only have to invest once in this plan, with no limit on the maximum amount.
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Seniors will benefit from additional interest
By the way, this account can be opened by any Indian citizen, including a minor. The account can be opened as a joint client or as a sole client. According to the SBI website, NRO or NRI will not be allowed to open this account. If seniors invest in this program, they will receive more interest than normal investors.
To invest in this device, investors must have a savings account, at sight or overdraft. However, only accounts will be selected for the plan that will be fully operational. In addition, these accounts must also have online banking and the account must not be locked or terminated for any reason.
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Scheme up to 10 years
The SBI Annuity Scheme is available in all branches of the bank and it will be for a duration of 36, 60, 84, 120 months. That is, you can choose an annuity from 3 years to 10 years in the plan. In this, the minimum investment is calculated based on the annuity of at least Rs 1,000 each month. It also depends on the duration of occupation chosen in the plan.
Different rules for online and offline deposits
The most important thing about the system is that there are different rules for depositing money online and depositing money offline. If an investor wishes to invest money into the system through an online transaction, the same maximum deposit limit will remain the same as usual for sending money online. However, if you deposit money offline, there is no limit.
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Interest will be determined from FD only
SBI will determine interest on this plan only through its FD. The bank increased FD interest on June 14 and currently grants up to 5.50% interest on 3-10 year FDs. In this, the elderly receive interest from 5.95% to 6.30%. Like FD, TDS will be applicable on interest here too. To avoid this, you will need to present the PAN card details.
These facilities are available on account
SBI also offers an overdraft facility on this account. 75% of the amount deposited in the account can be considered as an overdraft. It can only be withdrawn for needs such as marriage, treatment or education. If an investor dies, there may be a premature withdrawal of the amount deposited in his account up to Rs 15 lakh. Withdrawal under any other circumstances will result in a penalty. It will be applicable as FD, which is currently 1% on the amount above 5 lakhs. Not only that, you will also receive one percent interest less than normal on withdrawal.
Tags: FD Bank, bank interest rate, Investment advice, SBI Bank
FIRST POST: June 21, 2022, 2:12 p.m. HST