SBI Annuity Deposit Scheme 2025 – A Reliable Option for Assured Monthly Income
For many families in India, financial security means having a steady and predictable income every month. This becomes especially important after retirement, during children’s education, or when managing regular household expenses. To support such needs, the State Bank of India (SBI) offers a unique deposit product known as the SBI Annuity Deposit Scheme.
This scheme allows individuals to deposit a lump sum once and receive a fixed monthly payout that includes both the principal amount and the interest earned. It works almost like a pension plan, but without market risks, making it a preferred choice for those who want assured cash flow.
This detailed guide explains everything you need to know about the scheme, including features, interest rates, eligibility, application process, advantages, drawbacks, and sample payout calculations.
What is the SBI Annuity Deposit Scheme?
The SBI Annuity Deposit Scheme is a financial product where a customer deposits a one-time amount, and the bank returns this amount gradually in the form of equal monthly installments over a chosen tenure. Each installment includes:
- A portion of the original principal, and
- The interest earned on the reducing balance.
This structure makes the scheme suitable for anyone who wants fixed, predictable monthly income without worrying about market fluctuations or complex investment decisions.
Who Should Consider This Scheme?
The scheme is ideal for a wide range of individuals who need stable cash flow. Some of the groups who benefit the most include:
✔ Retired Individuals
After retirement, regular salary stops but monthly expenses continue. This scheme acts as an alternative pension, providing reliable income for household needs, medical expenses, and personal spending.
✔ Parents Supporting Students
Families with children studying in other cities can choose this scheme to ensure a fixed monthly transfer instead of giving a large amount at once.
✔ Risk-averse Investors
Many people avoid shares, mutual funds, and other market-linked instruments because of volatility. For them, SBI’s annuity plan offers zero-risk returns with guaranteed payouts.
✔ Families Looking for Joint Investment
Husbands and wives or elderly parents and children can open a joint account under the scheme to ensure regular income for shared financial responsibilities.
Key Features of the SBI Annuity Deposit Scheme
Here are the main highlights that make this scheme popular among conservative investors:
🔹 One-time Deposit, Monthly Income
You invest a single lump sum and begin receiving monthly installments immediately from the following month.
🔹 Flexible Tenure Options
Choose from 3, 5, 7, or 10-year periods depending on your financial goals and stability needs.
🔹 Minimum Deposit Requirement – ₹25,000
Suitable even for small savers who want to convert savings into monthly income.
🔹 No Maximum Limit
Individuals, HUFs or families can deposit as much as they wish.
🔹 Loan Facility Up to 75%
Customers can avail loans up to 75% of the deposited amount, making the scheme useful during emergencies.
🔹 Nomination Facility Available
Ensures that your family receives benefits without legal hurdles.
🔹 No Age Limit
Any Indian resident — young, middle-aged, or senior — can invest.
🔹 Taxation
Interest earned is taxable. However, customers can submit Form 15G/15H to avoid TDS if eligible.
Interest Rates for 2025
SBI offers different interest rates depending on the investor’s age group. Rates are similar to regular term deposits and are compounded quarterly.
| Tenure | General Public | Senior Citizens | SBI Staff |
|---|---|---|---|
| 3–5 years | 5.30% | 5.90% | 6.40% |
| 7–10 years | 5.40% | 5.90% | 6.40% |
Interest is adjusted into the monthly annuity installment, so the interest component reduces gradually as the principal reduces.
Examples of Monthly Income
Here are some sample calculations to help you understand the approximate monthly payout:
| Deposit Amount | Tenure | Estimated Monthly Payout |
|---|---|---|
| ₹1,00,000 | 3 years | ₹3,259 |
| ₹2,00,000 | 3 years | ₹6,451 |
| ₹3,00,000 | 3 years | ₹9,677 |
The larger the investment, the higher the guaranteed monthly income.
Benefits of the SBI Annuity Deposit Scheme
✔ High Level of Safety
Backed by the country’s largest public sector bank, the scheme carries almost no risk.
✔ Fixed Cash Flow
Perfect for meeting:
- Monthly rent
- Medication expenses
- Groceries
- Tuition fees
- Household bills
✔ Multiple Tenure Choices
From 3 to 10 years, it offers flexibility for users to match their long-term or medium-term goals.
✔ Loan Facility
Instead of breaking the deposit, investors can take a loan against it.
✔ Higher Interest for Senior Citizens
Older individuals benefit from a better rate, improving their monthly income.
✔ Simple Documentation
Only standard KYC details are needed.
Drawbacks of the Scheme
Even though the scheme is safe, it may not be ideal for everyone.
❌ No Liquidity
Once deposited, the amount cannot be withdrawn prematurely except in exceptional conditions.
❌ Interest is Taxable
Those in higher tax brackets may not find it tax-efficient.
❌ Returns are Moderate
Compared to mutual funds, equity investments or long-term bonds, the returns are lower.
How to Apply for the SBI Annuity Deposit Scheme
Offline Process
- Visit the nearest SBI branch.
- Ask for the Annuity Deposit Scheme application form.
- Fill in the deposit amount, tenure, and nominee details.
- Provide PAN, Aadhaar, and address proof for KYC.
- Deposit the amount at the counter.
- The scheme activates immediately.
Online Process
- Log in to SBI Net Banking.
- Navigate to Deposit Schemes.
- Select Annuity Deposit Scheme.
- Enter the deposit amount and tenure.
- Make payment through your account.
- You will receive confirmation instantly.
Who Should Avoid This Scheme?
You may skip this scheme if:
- You expect higher returns from long-term investments
- You want complete flexibility with withdrawal
- You fall in a high tax slab where interest income becomes expensive
Application Link
Final Summary
The SBI Annuity Deposit Scheme 2025 is a stable and risk-free option for individuals who want predictable monthly income. Whether you are a retiree looking for a pension-like structure, parents supporting students, homemakers managing household needs, or anyone who wants guaranteed returns without the fear of market risks, this scheme fits perfectly.
With SBI’s trust, flexible tenure options, a simple application process, and steady monthly payouts, the scheme is one of the most dependable financial products for long-term income stability
