When it comes to enhancing your wealth, many individuals choose programs that provide a fixed monthly income to ensure that household necessities are always satisfied, even in the worst of times, as we have seen with the Covid-19 outbreak.
The State Bank of India (SBI), India's largest state bank, offers one such scheme to its customers that includes the farming community as well. Continue reading to learn more about this unique deposit scheme, as well as an estimate of how you might earn Rs.10000 each month from it.
SBI's special deposit program allows you to begin earning a set monthly income after a specified period of time. This scheme is known as the SBI Annuity Deposit Scheme.
Customers must make a one-time lump sum deposit under this scheme, which is transferable between SBI branches and will receive the funds in Equated Monthly Installments (EMIs). This sum will include both the principal amount and the interest on the reducing principal amount, which will be compounded quarterly and discounted to monthly value.
Earn monthly income with SBI Annuity Deposit Scheme
According to the SBI website, the Annuity Deposit Scheme has the following features:
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Customers can make one-time lump sum deposits and receive repayment in monthly annuity installments that include a portion of the principal amount plus interest under the program.
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The deposit period will be 36, 60, 84, or 120 months.
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All SBI branches provide the SBI Annuity Deposit Scheme.
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The maximum deposit amount under this scheme has no upper limit.
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The deposit amount is based on a minimum monthly annuity of Rs.1000 for the relevant period
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Premature payment is allowed for deposits up to Rs.15,00,000. The penalty will be chargeable, as applicable to Term Deposits.
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Premature payment is permitted without any limit in the case of the depositor's death.
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The rate of interest is as applicable to Term Deposits for Public and Senior Citizens
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Payment of annuity on the anniversary date of the month following the month of deposit. If that date is non-existent (29th, 30th & 31st), it will be paid on the 1st day of the next month.
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Nomination is available in favor of individuals only
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Overdraft/loan up to 75% of the balance amount of annuity may be granted in special cases.
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After disbursal of OD/loan, further annuity payments will be deposited in the loan account only.
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Universal Passbook is issued in lieu of Term Deposit
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Transferability allowed among branches
How to earn a monthly fixed income of Rs.10000 with this scheme?
A consumer will have to make a one-time deposit of Rs.507964 to obtain a monthly income of Rs.10,000 from this scheme. The return from the scheme based on a 7 percent rate of interest would bring back an amount of Rs.10000 every month.
