The Annuity deposit scheme by SBI is a popular one among the State Bank of India costumers. This scheme allows them to deposit one time lump-sum amount and after that they get re-payment of same amount on monthly basis. No matter if you are a senior citizen or general public, you can take advantage of this scheme. However, applicable monthly repayment amount depends on the interest rate. You can use our SBI annuity deposit scheme calculator for precise results.
Many people who invest in this scheme tend to use a SBI Annuity Deposit Scheme calculator. Based on our research most of the available calculators are not using latest interest rates so providing incorrect data. Our SBI Annuity deposit scheme calculator utilizes the latest interest rates (updated on 15th May 2024) to provide you accurate information. Using it you can find out the exact monthly amount you are going to get based on your invested amount.
Understanding SBI Annuity Deposit Scheme Calculation by Example
Suppose you have deposited ₹10,00,000 (10 lakhs) for 5 years under the SBI Annuity Deposit Scheme at an interest rate of 6.50% per year. Under this scheme, the bank is going to give you regular income per month.
Monthly Payment Breakdown:
Let’s say the bank calculates that they will pay you ₹19,600 every month. This monthly payment is made up of two parts:
- Principal Repayment: This is a portion of your original investment (₹10,00,000).
- Interest Earned: This is the interest you earn on the remaining balance of your investment.
Detailed Breakdown:
Month 1:
- Original Investment: ₹10,00,000
- Interest for Month 1: Suppose the interest for the first month is ₹5,417 (calculated as (₹10,00,000 * 6.50%) / 12).
- Principal Repayment for Month 1: ₹19,600 – ₹5,417 = ₹14,183
So, for Month 1:
- Total Payment to You: ₹19,600
- Your Original Money Returned (Principal): ₹14,183
- Interest Earned: ₹5,417
Month 2:
- Remaining Investment: ₹10,00,000 – ₹14,183 = ₹9,85,817
- Interest for Month 2: Suppose the interest for the second month is ₹5,348 (calculated as (₹9,85,817 * 6.50%) / 12).
- Principal Repayment for Month 2: ₹19,600 – ₹5,348 = ₹14,252
So, for Month 2:
- Total Payment to You: ₹19,600
- Your Original Money Returned (Principal): ₹14,252
- Interest Earned: ₹5,348
This Process Repeats Every Month:
- Each month, you get ₹19,600.
- Part of that ₹19,600 is your original money (principal) being returned to you.
- The rest is the interest you earn on the remaining balance of your investment.
Benefits:
- Regular Income: You receive a steady amount every month, which helps in managing your monthly expenses.
- Interest Earnings: You earn interest on the amount that hasn’t been paid back yet, which increases your total income.
- Security: Your investment is safe with SBI.
DO READ -> SBI FD Calculator 2024
SBI Annuity Deposit Scheme 2024 Interest Rate
We already provided you information on Latest SBI Term Deposit Rates. The SBI Annuity Deposit Scheme Interest rate depends on these rates. Here is the complete table explaining the latest applicable interest rates in 2024:
Interest Rates for SBI Annuity Deposit Scheme (Effective from 15/05/2024)
| Tenure | Interest Rate for General Public (%) | Interest Rate for Senior Citizens (%) |
|---|---|---|
| 7 days to 45 days | 3.50 | 4.00 |
| 46 days to 179 days | 5.50 | 6.00 |
| 180 days to 210 days | 6.00 | 6.50 |
| 211 days to less than 1 year | 6.25 | 6.75 |
| 1 year to less than 2 years | 6.80 | 7.30 |
| 2 years to less than 3 years | 7.00 | 7.50 |
| 3 years to less than 5 years | 6.75 | 7.25 |
| 5 years and up to 10 years | 6.50 | 7.50 |
SBI Annuity Deposit Scheme Monthly Income Calculator
The annuity payment can be calculated using the formula :
A = Monthly annuity payment
P = Principal amount
r = Monthly interest rate (annual rate / 12)
n = Total number of payments (months)
Based on this formula and latest applicable interest rates as per 2024, we have prepared the State Bank of India Annuity Deposit Scheme 2024 Calculator. You can check the annuity amount simply by providing details like Invested Amount, Tenure and mentioning if you are senior citizen or not. After entering these details, hit the “Calculate” button to check the result instantly.
SBI Annuity Deposit Calculator 2024
DO READ -> SBI Amrit Kalash Maturity Amount Calculator
Calculator for SBI Annuity Deposit Scheme : FAQs
Quick Links
| SBI’s Official Page on this Scheme | Click Here |
| More SBI Calculators | Click Here |
Simpple explanation and the best!!
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