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SBI Annuity Deposit Scheme Calculator

Calculate your guaranteed monthly cash flow with the SBI Annuity Deposit Scheme Calculator. Invest a one-time lump sum and receive equated monthly payouts comprising both principal and quarterly compounded interest across 3, 5, 7, or 10-year tenures with senior citizen rate concessions.

Interactive Sandbox
₹10K₹1Cr
1%15%
1 yr10 yrs

Monthly Annuity Payout

₹0

Total Interest Earned

₹0

Total Payout Received

₹0

Principal vs Interest Breakdown

Principal Interest

Year-wise Payout Schedule

YearPrincipal ReturnedInterest PaidRemaining Balance

Current SBI Rates

Period / Type Interest Rate
3 Years (36 Months) 6.75% p.a. (General) | 7.25% p.a. (Senior)
5 Years (60 Months) 6.50% p.a. (General) | 7.50% p.a. (WeCare Senior)
7 Years (84 Months) 6.50% p.a. (General) | 7.50% p.a. (WeCare Senior)
10 Years (120 Months) 6.50% p.a. (General) | 7.50% p.a. (WeCare Senior)
Minimum Monthly Annuity ₹1,000 per month (No maximum investment limit)

How to Use This Calculator

  1. 1Enter the required values in the input fields above
  2. 2Adjust the sliders or type exact values for precision
  3. 3Click "Calculate" to see instant results with breakdown
  4. 4View the chart and table for detailed analysis
In-Depth Authority Guide

Comprehensive Guide & Financial Analysis

Verified Against SBI Schedules

Detailed Guide to the SBI Annuity Deposit Scheme

The SBI Annuity Deposit Scheme is a premier fixed-income financial product tailored specifically for individuals seeking guaranteed, disciplined monthly cash flow without the volatility of stock markets or the complexity of managing periodic fixed deposit renewals. While standard fixed deposits return your principal lump sum at the end of the term, the Annuity Deposit Scheme is structured to disburse an equated monthly annuity payout consisting of a portion of your initial deposited principal plus quarterly compounded interest across the chosen tenure.

By the conclusion of the deposit contract, the entire principal balance is systematically returned to the depositor alongside accrued earnings, leaving a terminal balance of zero. This unique cash-flow profile makes the scheme extraordinarily popular among senior citizens, voluntary retirement scheme (VRS) recipients, retirees without institutional pensions, parents financing college education living allowances, and individuals who have received one-time windfalls (such as property sales or gratuity settlements) and wish to secure predictable monthly income.

How the SBI Annuity Scheme Operates

When an investor deposits a lump sum under the SBI Annuity Scheme:

  • •Tenure Selections: You can commit funds for fixed tenures of 36 months (3 years), 60 months (5 years), 84 months (7 years), or 120 months (10 years). Tenures outside these four fixed buckets are not available under scheme guidelines.
  • •Interest Rate Linkage: The interest rate applied is identical to the prevailing card rate for SBI retail term deposits of the corresponding maturity. Resident senior citizens (aged 60 and above) automatically receive an additional 0.50% interest rate boost, and those opting for 5 years or longer benefit from the SBI WeCare enhancement (up to 1.00% extra).
  • •Compounding Frequency: Although disbursements occur on a monthly schedule, interest on the diminishing principal balance is compounded quarterly in adherence to Indian public-sector banking conventions. This compounding mechanism delivers an actuarially higher return than simple monthly payouts.
  • •Payment Commencement: Equated monthly annuity payouts commence exactly one calendar month following the date of deposit realization and are credited directly into your linked SBI Savings Bank or Current Account.

    • Mathematical Formulation of Monthly Annuity Payouts

    The equated monthly annuity amount (PMT) payable by State Bank of India is derived from the standard financial formula for the Present Value of an Ordinary Annuity, adjusted for quarterly compounding:

    PMT = P × [ r / (1 - (1 + r)^(-n)) ]

    Where:

  • •P: Initial lump-sum capital deposited with SBI.
  • •r: Effective monthly interest rate derived from the quarterly compounded contractual rate r = (1 + R_annual / 400)^(1/3) - 1.
  • •n: Total number of monthly annuity installments (36, 60, 84, or 120 months).

    • Because each monthly payout includes a slice of your initial principal along with the interest accrued on the remaining balance, the monthly cash flow is substantially higher than what a regular non-cumulative fixed deposit yields.

    Practical Worked Example: Investing ₹5 Lakhs and ₹10 Lakhs

    To understand the tangible cash flow generated by the SBI Annuity Deposit Scheme, observe the worked models below comparing different deposit amounts and tenures:

    | Investment Parameter | Scenario A: 5 Years (₹5 Lakhs) | Scenario B: 10 Years (₹10 Lakhs) | | Initial Lump Sum Deposit | ₹5,00,000 | ₹10,00,000 | | Contractual Tenure | 60 Months (5 Years) | 120 Months (10 Years) | | Applicable Card Rate (General) | 6.50% p.a. | 6.50% p.a. | | Applicable Rate (Senior Citizen) | 7.50% p.a. (WeCare) | 7.50% p.a. (WeCare) | | General Public Monthly Payout | ₹9,783 / month | ₹11,355 / month | | Senior Citizen Monthly Payout | ₹10,019 / month | ₹11,870 / month | | Total Repayment Received (General) | ₹5,86,980 | ₹13,62,600 | | Total Repayment Received (Senior) | ₹6,01,140 | ₹14,24,400 | | Net Interest Earned (General) | ₹86,980 | ₹3,62,600 | | Net Interest Earned (Senior) | ₹1,01,140 | ₹4,24,400 |

    In-Depth Comparison: SBI Annuity vs. Regular FD vs. Post Office MIS vs. SCSS

    Investors frequently struggle to distinguish between various monthly income mechanisms. The comparison table below highlights key operational parameters:

    | Scheme Feature | SBI Annuity Deposit | SBI Monthly Payout FD (TDR) | Post Office MIS (POMIS) | Senior Citizen Savings Scheme (SCSS) | | Principal at Maturity | Reaches ₹0 (Returned Monthly) | 100% Principal Returned at End | 100% Principal Returned at End | 100% Principal Returned at End | | Maximum Deposit Limit | No Ceiling (Unlimited) | No Ceiling (Unlimited) | ₹9 Lakh (Single) / ₹15 Lakh (Joint) | ₹30 Lakh per Senior Citizen | | Payout Frequency | Monthly (Principal + Interest) | Monthly (Discounted Interest Only) | Monthly (Simple Interest Only) | Quarterly (Paid on 1st of Quarter) | | Available Tenures | 3, 5, 7, or 10 Years | 7 Days to 10 Years | Strictly 5 Years | 5 Years (Extendable by 3 Years) | | Premature Withdrawal | Highly Restricted (Death only) | Allowed with 0.5%–1% penalty | Allowed after 1 yr with 1%–2% penalty | Allowed after 1 yr with 1%–1.5% penalty | | Overdraft Facility | Allowed up to 75% in emergencies | Allowed up to 90%–95% | Not Available | Not Available |

    Taxation Guidelines and TDS Compliance

  • •Taxability of Interest: In an Annuity Deposit, the principal component returned each month is completely tax-free (since it represents your own invested capital). However, the interest portion earned each month is fully taxable under the head Income from Other Sources according to the investor's applicable income tax slab rates.
  • •TDS Deduction under Section 194A: State Bank of India is legally required to deduct Tax Deducted at Source (TDS) at 10% on the cumulative interest credited across the financial year if it exceeds ₹40,000 for regular individuals or ₹50,000 for resident senior citizens.
  • •Avoiding TDS with Form 15G / 15H: If your total taxable annual income is below the basic tax exemption limit, you can prevent TDS deductions by submitting Form 15G (below 60 years) or Form 15H (senior citizens) via internet banking, the YONO mobile app, or at your home branch in April of each financial year.

    • Emergency Liquidity: Overdraft Loan Facility

    A common fear among fixed-income investors is locking away large capital during medical or domestic emergencies. State Bank of India addresses this liquidity concern by permitting an Overdraft / Demand Loan facility of up to 75% of the remaining balance value of the annuity deposit under exceptional circumstances. The loan interest rate is fixed at a modest spread over the underlying deposit rate, and loan recoveries can be directly offset against incoming monthly annuity disbursements.

    Important Premature Closure Restriction: Under standard bank regulations, premature closure of an SBI Annuity Deposit is not permitted during the depositor's lifetime, except under dire situations such as the medical treatment of life-threatening terminal illnesses or upon the unfortunate demise of the primary account holder. In the event of the depositor's demise, the nominee or legal heir can choose either to continue receiving the remaining monthly annuity disbursements or receive the lump-sum discounted terminal value.

    Frequently Asked Questions

    What is the minimum and maximum deposit limit for the SBI Annuity Deposit Scheme?
    The minimum deposit amount must be sufficient to yield a monthly annuity payout of at least ₹1,000 for the chosen tenure (approximately ₹33,000 for 3 years or ₹88,000 for 10 years). There is absolutely no maximum investment ceiling under the scheme.
    How does the monthly payout differ between an Annuity Deposit and a Regular Fixed Deposit?
    In a Regular Fixed Deposit with monthly payout, only the interest earned is disbursed each month, and your original principal remains untouched and returned in full at maturity. In the SBI Annuity Deposit Scheme, each monthly installment contains both a portion of your principal and accrued quarterly compounded interest, so your principal gradually amortizes down to zero at maturity.
    Can senior citizens open an SBI Annuity Deposit jointly with a spouse?
    Yes. Joint accounts can be opened by two adults on either 'Either or Survivor' or 'Former or Survivor' terms. If the primary account holder is a senior citizen (aged 60+), the deposit qualifies for the senior citizen rate concession of 0.50% to 1.00% extra.
    Can I obtain a loan or overdraft against my SBI Annuity Deposit?
    Yes. In case of unexpected emergencies, SBI allows depositors to avail of a loan or overdraft facility of up to 75% of the present discounted value of the remaining annuity installments, providing crucial liquidity without breaking the deposit.
    What happens to the annuity payments if the primary depositor passes away?
    Upon the demise of the depositor, the registered nominee or legal heir has the option to either continue receiving the scheduled monthly annuity payments until the completion of the original tenure, or opt for a premature lump-sum settlement of the remaining discounted balance value.
    Can I transfer my SBI Annuity Deposit account from one branch to another?
    Yes. The Annuity Deposit account can be freely transferred between any State Bank of India branches across India without impacting the scheduled monthly annuity payout dates or linked savings account credits.
    Is the entire monthly annuity payout taxable under Indian Income Tax rules?
    No. Only the interest component contained within each monthly annuity installment is taxable under 'Income from Other Sources'. The portion of the installment that represents the return of your original principal capital is completely non-taxable.
    Can I choose tenures like 1 year, 2 years, or 4 years under this scheme?
    No. SBI rules strictly restrict the tenure options for the Annuity Deposit Scheme to exactly four buckets: 36 months (3 years), 60 months (5 years), 84 months (7 years), or 120 months (10 years).
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    Disclaimer: This calculator provides estimates based on the inputs provided. Actual rates and results may vary. Always verify with SBI's official website or visit your nearest branch before making financial decisions. This website is not affiliated with State Bank of India.

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