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    Annuity Deposit Scheme

    An annuity deposit scheme enables depositors to make one-time lump sum payments which they can receive in EMIs that comprise a portion of the principal amount in addition to the interest on the diminishing principal amount, discounted to the monthly value after being compounded to quarterly rests. Customers will have to start making interest payments exactly a month after the date on which the deposit was made. In case the date does not exist (such as the 29th, 30th or 31st), the payment has to be made on the first day of the following month.

    Eligibility Criteria

    Most banks that offer annuity deposit schemes specify that only Indian residents can apply for the same. NRE and NRO customers are not eligible.

    Account Type

    Term Deposit Account / Special Term Deposit Account (Single OR Joint depending upon the bank)

    Deposit Amount

    The deposit amounts vary from bank to bank. For example, depending on minimum monthly annuity, the minimum amount that can be deposited into an SBI annuity deposit account is Rs.1,000 for the relevant period. The minimum deposit cannot be under Rs.25,000 in any case. There is no maximum limit on how much money you can deposit into this account.

    Rate of Interest

    As applicable to term deposits depending upon the choice of the depositor. For instance, the lowest returns with SBI can be 5.25% and the highest is 7.5%. Senior citizens get an extra 0.5% return on their investment.

    Period

    Customers usually have a choice between 12, 24, 36, 60, 84 or 120 months (one year, two years, three years, five years, seven years and ten years). Each bank has its own set of tenures, so it is important to look for the one that best suits your needs before applying for one.

    TDS

    Tax benefits provided under section 80C of Income Tax Act, 1961

    Loan against the scheme

    While some banks offer loans against an annuity deposit scheme, there are other banks that do not offer the facility to customers.

    Nomination (if any)

    Available in some cases, but only one person can be nominated by an individual, but joint accounts can nominate more than one person with common consent.

    Annuity Deposit Scheme Interest Rates

    Following are the interest rates applicable to customers who deposit amounts up to Rs.1 crore.

    Tenors

    Existing rate for Public

    Revised for Public w.e.f 05.10.2015

    Existing rate for Senior Citizens

    Revised rate for Senior Citizens w.e.f 05.10.205

    7 days to 45 days 5.50% 5.25% 5.75% 5.50%
    46 days to 179 days 6.75% 6.50% 7% 6.75%
    180 days to 210 days 7% 6.75% 7.25% 7%
    211 days to 365 days 7.25% 7% 7.50% 7.25%
    365 days to 455 days 7.5% 7.25% 7.75% 7.50%
    456 days to 730 days 7.75% 7.50% 8% 7.75%
    Two years to three years 7.75% 7.50% 8% 7.75%
    Three years to five years 7.25% 7% 7.50% 7.25%
    Five years to ten years 7.25% 7% 7.50% 7.25%

    *Interest rates are subject to the bank’s discretion and can be changed at any time in the future.

    *Rates as of Dec 1st 2015

    Frequently Asked Questions

    1. Can I make premature payments towards the scheme?

      The bank generally does not approve of premature payment, but customers will be allowed to do so only in case of the death of the depositor.

    2. What is the difference between annuity deposit and a recurring deposit account?

      Customers who start a recurring deposit account must make payments in instalments and the maturity amount is presented to the customer on the maturity date. Annuity deposits, on the other hand, allow customers to make one-time deposits so that the amount in addition to interest on diminishing principle can be given back to the customer in instalments over the predetermined tenor.

    3. What is the difference between annuity deposits and a fixed deposit account?

      Customers who open fixed deposit account must make an initial deposit for which they will receive an amount that includes interest and principal in case of STDR and only principal in case of TDR on the maturity date. Annuity deposits, in comparison, require customers to make a one-time deposit so that the amount along with the interest can be given back to the customer over the predetermined tenor chosen by the customer, in EMIs.

    4. Is there a minimum and maximum limit for deposits towards this scheme?

      Yes, the minimum amount of money that can be deposited will depend on minimum monthly annuity Rs.1,000 for the relevant period. For instance, if the account is opened with a three-year tenor, the minimum deposit amount is Rs.36,000. There is no maximum limit, allowing customers to deposit as much money as they possibly can.

    5. Can I debit money from any other account to open an annuity deposit account?

      Yes, customers are allowed to debit their OD, current or savings account to open an annuity deposit account. The account chosen for debiting must be a valid transactional account via internet banking medium and must not be a locked / dormant / stopped account.

    Useful Information on SBI Fixed Deposit

    Annuity Deposit Scheme Reviews

    • YES Bank Fixed Deposit
      "Fraud by Yes Bank"
      0.5 1.0/5 "Really Bad"
      Yes Bank has not credited Interest for my Fixed Deposit. On enquiring they gave me a story that the interest amount has been adjusted towards TDS. They have not provided credit entry for the interest and the debit entry for the TDS respectively.
      Was this review helpful? 0
      , bhopal
      Reviewed on Jan 11, 2019
    • ICICI Bank Fixed Deposit
      "Smart Investment"
      0.5 5.0/5 "Blown Away!"
      In ICICI fixed deposit interest rate is around 6.75% per annum, I opened the FD through online. I have invested Rs. 1 lakh they wont take any charges for the pre matured fixed interest. I believe the interest rate is good compared to the government bank.
      Was this review helpful? 2
      , yamuna nagar
      Reviewed on Jan 10, 2019
    • Kotak Fixed Deposit
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I am having a Fixed Deposit account with Kotak Mahindra bank, they provide good services when compared to other banks. I get good interest rate in returns after the maturity period which is after 3 years. Customer support is average with Kotak Mahindra bank.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 10, 2019
    • HDFC Bank Fixed Deposit
      "Hassle free"
      0.5 5.0/5 "Blown Away!"
      I also have a fixed deposit account with HDFC Bank. The process to open this account is easy. I can do it online. They also offer a good rate of interest on the account. The bank has always been up to the mark to ban with. It is very convenient and easy.
      Was this review helpful? 2
      , noida
      Reviewed on Jan 09, 2019
    • IOB Fixed Deposit
      "Better Banking Experience"
      0.5 4.0/5 "Great!"
      I have invested a fixed deposit with Indian Overseas Bank. My wife has recommended me about this bank since she is working over there. I invested the money of Rs. 50000. I don't remember about the tenure period. Before 1 years, i have invested the money with them.
      Was this review helpful? 0
      , tiruchirapalli
      Reviewed on Jan 09, 2019
    • ICICI Bank Fixed Deposit
      "Good Deposit"
      0.5 5.0/5 "Blown Away!"
      I have invested a fixed deposit with ICICI. There is no reason for selected this bank. They have offered me a interest rate of 6.5% and there is no processing fee. I have invested the money 8 months before. This is a one year plan. I'm happy about the services provided by the ICICI for this account
      Was this review helpful? 1
      , thane
      Reviewed on Jan 04, 2019
    • Corporation Bank Fixed Deposit
      "Average"
      0.5 4.0/5 "Great!"
      I had account with Corporation Bank and its very old one. I put fixed deposit before 3 to 4 years. The interest rate was around 7% which was minimum compared to others but am satisfied. I have deposited for 5 years. Actually have not taken any benefits, just have invested. The customer service was okay.
      Was this review helpful? 3
      , pune
      Reviewed on Jan 04, 2019
    • HDFC Bank Fixed Deposit
      "Good service"
      0.5 4.0/5 "Great!"
      I do have a fixed deposit account with HDFC Bank. They are giving good interest. I can manage this account on line. I have chosen HDFC because of bank financial is good. I have just started long time, The process was very quick and it was done through on line.
      Was this review helpful? 3
      , thane
      Reviewed on Jan 02, 2019
    • SBI Fixed Deposit
      "Best Investment plan"
      0.5 5.0/5 "Blown Away!"
      I have taken fixed deposit account in State Bank Of India . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .
      Was this review helpful? 4
      , ahmedabad
      Reviewed on Dec 29, 2018
    • review Fixed Deposit
      "Good online features on FD"
      0.5 5.0/5 "Blown Away!"
      In Saraswat bank they are providing the interest around 7% per annum, the minimum amount Rs. 5000 to max, still my FD is running with this bank. The online options are excellent without visiting I can track the interest and deposit amount through online.
      Was this review helpful? 1
      , pune
      Reviewed on Dec 17, 2018
    • HDFC Bank Fixed Deposit
      "Convenient FD with HDFC"
      0.5 5.0/5 "Blown Away!"
      In HDFC I can deposit for minimum of Rs. 5000 to max amount. I done the investment of one time payment around Rs.6 lakhs. I can chose the tenure period based on the convenient, it gives the interest of 7% its maximum. I can open and close the account through online.
      Was this review helpful? 5
      , pune
      Reviewed on Dec 17, 2018
    • SBI Fixed Deposit
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had made this investment pretty long time back and the services which they had provided so far has been good. The interest rate with them has been good and the growth with the investment has also been good. Their customer support has been helpful in guiding with everything.
      Was this review helpful? 8
      , bangalore
      Reviewed on Dec 14, 2018
    • YES Bank Fixed Deposit
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been a good service which they had been providing so far and i had started this investment a log time back. Their customer support has been helpful in guiding me in the investment plans and explaining with the growth of the investment. The interest rate with them has also been good.
      Was this review helpful? 3
      , bangalore
      Reviewed on Dec 14, 2018
    • Citibank Fixed Deposit
      "Not satisfied with the service"
      0.5 1.0/5 "Really Bad"
      I had started this investment a pretty long time back and they had been providing a good service. Their customer support has not been responsive and i do not suggest any one to make an investment through them. There has not been a good growth with the investment.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 14, 2018
    • SBI Fixed Deposit
      "Good Investment Plan"
      0.5 4.0/5 "Great!"
      I have taken fixed deposit account in STATE BANK OF INDIA . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .
      Was this review helpful? 4
      , mumbai
      Reviewed on Dec 12, 2018
    • Post Office Fixed Deposit
      "Good investment plan"
      0.5 5.0/5 "Blown Away!"
      I have started investing in the fixed deposit almost more than 5 years. I have invested a variable amount in different times. They have offered me a interest rate of 7.5%. The response was good. I have chosen the post office because of the safe and security.
      Was this review helpful? 12
      , guwahati
      Reviewed on Dec 12, 2018
    • YES Bank Fixed Deposit
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have the fixed deposit account with the Yes bank and the interest rate they have given me is good, also the customer service is good too they have co-ordinated with me well they time to time update me about there date of pay my next fixed deposit date.On line banking services are fine one too and am really happy with them.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Dec 11, 2018
    • Axis Bank Fixed Deposit
      "Average bank to avail fixed deposit"
      0.5 4.5/5 "Excellent!"
      I have chosen the Axis bank for my fixed deposit. I have deposited around of Rs. 50000. Since they are providing very good services in their branch. They have offered me a interest rate of 6.5%. I put the money in 2015. I have visited their branch many times and the service is very much prompt. I had no issues with them.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Dec 11, 2018
    • ICICI Bank Fixed Deposit
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      My fixed deposit is with ICICI Bank. I had to go to the bank and meet the executive and open the account. I can close the account online. There is a lock in period for 12 to 13 months. The interest I earn is satisfactory. I have a deposit of 70K. Overall good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Dec 07, 2018
    • Punjab National Bank Fixed Deposit
      "Good Investment Plan"
      0.5 5.0/5 "Blown Away!"
      I have taken fixed deposit account in Punjab National Bank . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and resonance.They are giving good rate of interest . Overall am happy with my account .
      Was this review helpful? 1
      , new delhi
      Reviewed on Dec 06, 2018
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