SBI Annuity Deposit Scheme Calculator
The SBI Annuity Deposit Scheme is a specialized term deposit wherein a lump-sum amount is deposited once, and is repaid in equated monthly installments (EMIs) comprising a part of the principal and interest on the reducing balance over 36, 60, 84, or 120 months.
SBI Annuity Deposit Scheme Calculator
Calculate guaranteed monthly equated payouts combining principal refund and compounding interest
SBI requires a minimum deposit equivalent to yielding at least ₹1,000 monthly payout. There is no maximum limit.
Eligible for +0.50% standard concession and +1.00% SBI WeCare benefit on 5-year+ tenures
• Minimum monthly annuity payout is strictly ₹1,000/month (minimum deposit required for 5 years is ₹51,109).
• Premature withdrawal is permitted only in case of the depositor's demise. Overdraft/loan up to 75% of annuity balance is available for emergencies.
Credited directly to your linked SBI savings account on the anniversary date of the month following deposit.
Principal vs Interest Proportion
Estimated Year 1 interest is within the ₹40,000 annual threshold. No TDS will be deducted by SBI.
Year-by-Year Reducing Balance Amortization Schedule
How your principal gradually diminishes as interest and principal portions are returned monthly
| Year | Opening Balance | Annual Annuity Received | Interest Portion | Principal Refund | Closing Balance |
|---|---|---|---|---|---|
| Year 1 | ₹5,00,000 | ₹1,17,396 | +₹29,925 | ₹87,471 | ₹4,12,529 |
| Year 2 | ₹4,12,529 | ₹1,17,396 | +₹24,066 | ₹93,330 | ₹3,19,199 |
| Year 3 | ₹3,19,199 | ₹1,17,396 | +₹17,816 | ₹99,580 | ₹2,19,619 |
| Year 4 | ₹2,19,619 | ₹1,17,396 | +₹11,147 | ₹1,06,249 | ₹1,13,370 |
| Year 5 | ₹1,13,370 | ₹1,17,396 | +₹4,031 | ₹1,13,365 | ₹0 |
| Total | — | ₹5,86,980 | +₹86,980 | ₹5,00,000 | ₹0 |
Mathematical Annuity Calculation Formula
The monthly payout in the SBI Annuity Deposit Scheme is determined using the actuarial present value of an ordinary annuity with monthly compounding on a reducing balance basis:
• A: Equated Monthly Annuity Payout (credited monthly)
• P: One-time lump sum principal deposit (₹)
• r: Monthly compounding interest rate = Annual Rate ÷ (12 × 100)
• n: Total tenure in months (36, 60, 84, or 120)
• In Month 1, interest is maximum because the full principal is outstanding.
• Each month, principal reduces by (A - Monthly Interest).
• In the final month, the remaining principal balance reduces precisely to ₹0.
Realistic Worked Example: ₹10 Lakhs Deposit for 5 Years (60 Months)
Consider a depositor investing ₹10,00,000 (₹10 Lakhs) under the SBI Annuity Deposit Scheme for a tenure of 5 years (60 months). Here is how returns compare between a regular depositor and a senior citizen:
- Monthly Guaranteed Payout:₹19,566 / month
- Total Payout across 60 Months:₹11,73,960
- Total Interest Earned:+₹1,73,960
- Year 1 Interest (Section 194A TDS):~₹60,820 (TDS Applicable)
- Monthly Guaranteed Payout:₹20,038 / month
- Total Payout across 60 Months:₹12,02,280
- Total Interest Earned:+₹2,02,280
- Senior Citizen Extra Wealth Gain:+₹28,320 higher return
SBI Annuity Deposit Scheme Benchmark Interest Rates (FY 2025–26)
The interest rates on SBI Annuity Deposits are pegged to retail domestic term deposits. Below is the official rate matrix and estimated monthly payout per ₹1 Lakh lump sum:
| Tenure | General Rate (% p.a.) | Senior Citizen Rate (% p.a.) | Monthly Payout (Per ₹1 Lakh - General) | Monthly Payout (Per ₹1 Lakh - Senior) |
|---|---|---|---|---|
| 36 Months (3 Years) | 6.75% p.a. | 7.25% p.a. | ₹3,076 / mo | ₹3,099 / mo |
| 60 Months (5 Years) | 6.50% p.a. | 7.50% p.a. | ₹1,957 / mo | ₹2,004 / mo |
| 84 Months (7 Years) | 6.50% p.a. | 7.50% p.a. | ₹1,485 / mo | ₹1,534 / mo |
| 120 Months (10 Years) | 6.50% p.a. | 7.50% p.a. | ₹1,135 / mo | ₹1,187 / mo |
SBI Annuity vs Regular FD vs Post Office Monthly Income Scheme (POMIS)
Choosing the right monthly income vehicle depends on whether you wish to preserve the principal at maturity or maximize monthly cash flow by liquidating principal alongside interest:
| Feature | SBI Annuity Scheme | Standard SBI FD (Monthly Payout) | Post Office MIS (POMIS) |
|---|---|---|---|
| Principal at Maturity | ₹0 (Fully liquidated monthly) | 100% returned at maturity | 100% returned after 5 years |
| Monthly Cashflow on ₹10L | ₹19,566 / mo (High cash flow) | ~₹5,417 / mo (Interest only) | ~₹6,167 / mo (Interest only) |
| Maximum Deposit Cap | No Upper Limit | No Upper Limit | ₹9 Lakhs (Single) / ₹15L (Joint) |
| Tenure Options | 3, 5, 7, or 10 Years | 7 Days to 10 Years | Strictly 5 Years |
| Premature Withdrawal | Only on death of depositor | Allowed with 0.50% - 1% penalty | Allowed after 1 yr with 1-2% deduction |
| Loan Facility | Available up to 75% of balance | Available up to 90% of deposit | No loan facility against POMIS |
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Frequently Asked Questions on SBI Annuity Deposit Scheme
Q:What is the SBI Annuity Deposit Scheme and how does it work?
The SBI Annuity Deposit Scheme is a one-time lump sum term deposit where the depositor receives guaranteed equated monthly payouts over a chosen tenure of 36, 60, 84, or 120 months. Unlike a traditional Fixed Deposit (FD) where principal is returned at maturity, each annuity installment combines a portion of the principal plus interest calculated on the reducing monthly balance until the balance reaches zero.
Q:What is the minimum and maximum deposit limit for SBI Annuity Scheme?
There is no upper cap on the maximum deposit amount. The minimum deposit amount is tied directly to the statutory minimum monthly annuity payout of ₹1,000 per month. Depending on the chosen tenure and applicable interest rate, the minimum lump sum deposit required is approximately ₹32,500 for a 3-year tenure and ₹83,000 for a 10-year tenure.
Q:What interest rates does SBI offer on Annuity Deposits in FY 2025-26?
SBI applies the same interest rates as its Domestic Retail Term Deposits (Fixed Deposits). Currently, for a 3-year tenure, the rate is 6.75% for general citizens and 7.25% for senior citizens. For 5, 7, and 10-year tenures, the rate is 6.50% for general depositors and 7.50% for senior citizens (inclusive of the 50 bps extra concession and 50 bps SBI WeCare benefit).
Q:Is Section 194A TDS deducted on SBI Annuity monthly payouts?
Yes. TDS under Section 194A is deducted on the interest component of the annuity payout if total annual interest across all SBI deposits exceeds ₹40,000 for individuals (below 60 years) or ₹50,000 for senior citizens (60+ years). TDS is deducted at 10% if PAN is submitted, or 20% without PAN. Depositors whose total income is below the taxable threshold can submit Form 15G (General) or Form 15H (Senior Citizens) to avoid TDS.
Q:Can I prematurely withdraw or take a loan against an SBI Annuity Deposit?
Premature closure of an SBI Annuity Deposit is strictly restricted and permitted only in the event of the depositor’s demise. However, depositors can avail an overdraft (OD) or demand loan facility for up to 75% of the balance amount in the annuity account to meet financial emergencies.
Q:How is SBI Annuity Scheme different from SBI Fixed Deposit (FD) and Recurring Deposit (RD)?
In a Fixed Deposit, you deposit once and receive interest monthly/quarterly with full principal returned at maturity. In an RD, you deposit monthly and receive principal plus interest at maturity. In an Annuity Deposit, you deposit once and receive both principal and interest spread evenly across every month, leaving a zero balance at maturity.
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