SBI Annuity Deposit Scheme

SBI Annuity Deposit Scheme 2025 – Secure Monthly Income with Guaranteed Returns

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SBI Annuity Deposit Scheme 2025 – Secure Monthly Income with Guaranteed Returns

When it comes to safe investments in India, government-backed banks remain the top choice for risk-averse investors. The State Bank of India (SBI), the country’s largest public-sector bank, offers a unique product for those who want to turn their savings into a fixed monthly income — the SBI Annuity Deposit Scheme.

This scheme is particularly useful for retirees, salaried individuals, parents supporting children, and anyone who values financial stability. By making a one-time deposit, you can enjoy monthly payouts that combine both your principal and interest, giving you the comfort of a steady cash flow.

What is the SBI Annuity Deposit Scheme?

The SBI Annuity Deposit Scheme allows you to invest a lump sum amount for a fixed tenure. Instead of receiving the amount only at maturity, the bank pays you back in equal monthly installments, each consisting of:

  • A portion of your principal amount, and

  • The interest earned on the remaining balance.

In short, this scheme works like a pension plan or monthly salary, making it ideal for those who want security over high-risk returns.

Who Should Consider This Scheme?

This plan is well-suited for:

  • Retirees: Creates a pension-like income post-retirement.

  • Parents with children studying elsewhere: Helps send a monthly allowance instead of a lump sum.

  • Conservative investors: Provides safety compared to volatile market-linked options.

  • Couples or joint investors: Ensures steady household income for families.

Key Features of the SBI Annuity Deposit Scheme

  • One-time investment: Deposit once, get regular payouts.

  • Eligibility: Any Indian citizen with an SBI account.

  • Minimum deposit: ₹25,000.

  • Maximum deposit: No upper limit.

  • Tenure options: 3, 5, 7, or 10 years.

  • Monthly payouts: Includes both principal + interest.

  • Loan facility: Up to 75% of the deposit can be availed.

  • Nomination facility: Available.

  • Taxation: Interest earned is taxable as per income slab (Section 80C benefits may apply).

SBI Interest Rates 2025

The updated interest rates for 2025 are:

Tenure Regular Citizens Senior Citizens SBI Staff
3 – 5 Years 5.30% 5.90% 6.40%
7 – 10 Years 5.40% 5.90% 6.40%

Example of Monthly Returns

Here’s what you can expect from different deposits (3-year tenure):

  • Deposit ₹1,00,000 → Monthly payout approx. ₹3,259

  • Deposit ₹2,00,000 → Monthly payout approx. ₹6,451

  • Deposit ₹3,00,000 → Monthly payout approx. ₹9,677

The higher the deposit, the larger the monthly income.

Benefits of SBI Annuity Deposit

  • 100% safety – Backed by India’s most trusted bank.

  • Guaranteed cash flow – Perfect for monthly household expenses.

  • Flexible tenures – Choose between 3–10 years.

  • Loan facility – Borrow up to 75% of your deposit if required.

  • Senior citizen benefits – Higher interest rates for retirees.

  • Simple process – Available both online and offline.

Drawbacks of the Scheme

  • No liquidity – Funds remain locked till maturity (except loan option).

  • Taxable returns – Interest is taxed as per your income slab.

  • Moderate returns – Lower compared to equity, mutual funds, or NPS.

How to Apply for the SBI Annuity Deposit Scheme

Offline Process

  1. Visit your nearest SBI branch.

  2. Request the Annuity Deposit Scheme form.

  3. Fill in details like deposit amount, tenure, and nominee.

  4. Submit KYC documents (PAN, Aadhaar, address proof).

  5. Deposit the chosen amount.

Online Process

  1. Log in to SBI Net Banking.

  2. Navigate to Deposit Schemes.

  3. Select Annuity Deposit Scheme.

  4. Enter the investment amount and tenure.

  5. Confirm the payment online.

Who Should Avoid This Scheme?

  • Young investors looking for high growth investments.

  • Individuals who require liquid funds.

  • People in higher tax brackets (since interest is fully taxable).

Final Thoughts

The SBI Annuity Deposit Scheme 2025 is one of the safest ways to ensure guaranteed monthly income without market risks. While the returns are modest compared to equities or mutual funds, it is an ideal choice for retirees, conservative investors, and families needing steady cash flow. With its combination of security, predictable returns, and flexible tenure options, this scheme provides peace of mind and financial stability — making it a smart pick for those who value safety over speculation.