In today’s world, just saving money is not enough. People want their savings to grow and also give them a steady monthly income.
This is why many investors—especially retirees—are now looking for safe options that offer both security and regular returns.
One such option is the Annuity Deposit Scheme offered by State Bank of India.
What is SBI’s Annuity Deposit Scheme?
This scheme is designed for people who want fixed monthly income from a one-time investment.
Here’s how it works:
You deposit a lump sum amount once
The bank pays you a fixed amount every month
This monthly payout includes both interest + part of your principal
The biggest advantage is certainty. You know exactly how much money you will receive every month, making financial planning easier.
How Much Can You Earn?
Let’s understand with a simple example.
If you invest ₹10 lakh:
You can earn around ₹11,000–₹12,000 per month (depending on tenure and interest rate)
Earlier estimates of ₹25,000 per month are not accurate for typical rates. Actual returns depend on:
Interest rate (around 7–7.5% per year)
Tenure (3 to 10 years)
The longer the tenure, the lower the monthly payout—but the income remains stable.
Key Features You Should Know
This scheme offers several benefits for safe investors:
Flexible tenure: Choose between 3 to 10 years
Minimum investment: Starts from just ₹1,000
Quarterly compounding: Interest is calculated like a Fixed Deposit
Monthly payouts: Start from the next month
Loan facility: Get up to 75% of your deposit if needed
This makes it a good mix of income + liquidity + safety.
Why This Scheme is Popular
The Annuity Deposit Scheme is especially useful for:
Retirees who need regular monthly income
Risk-averse investors who want stable returns
People looking for predictable cash flow
Since it is backed by State Bank of India, it is considered a low-risk investment option.
Things to Keep in Mind
Before investing, remember:
Your total investment gradually reduces over time (since principal is paid back monthly)
Returns are fixed, so you won’t benefit from market growth
Always check the latest interest rates at your bank branch
Final Takeaway
If you are looking for a safe and steady monthly income, SBI’s Annuity Deposit Scheme can be a reliable option.
It may not offer very high returns, but it provides something equally important—peace of mind and predictable income every month.
