SBI Annuity Deposit Scheme 2025 – Earn a Fixed Monthly Income with Guaranteed Returns

SBI Annuity Deposit Scheme 2025 – Earn a Fixed Monthly Income with Guaranteed Returns

When it comes to safe and reliable investments, few options can match the trust and security offered by government-backed banks. Among them, the State Bank of India (SBI) — India’s largest public sector bank — has introduced a remarkable product for those seeking a steady monthly income with zero market risk: the SBI Annuity Deposit Scheme 2025.

This scheme is designed especially for individuals who prefer assured, predictable earnings rather than taking risks in mutual funds or stock markets. With a one-time lump-sum deposit, you can enjoy fixed monthly payouts that include both the principal and interest, making it an ideal plan for retirees, salaried individuals, and families looking for financial stability.

 What Is the SBI Annuity Deposit Scheme?

The SBI Annuity Deposit Scheme is a unique fixed deposit plan that converts your one-time deposit into a regular source of monthly income. Instead of waiting until the end of the tenure to receive your money, SBI returns it to you in equal monthly installments (EMIs), which include:

• A portion of the principal amount, and

• The interest earned on the remaining balance.

In simple terms, this scheme acts like a monthly pension plan, ensuring that your savings generate consistent returns over a chosen period.

For example, if you invest ₹3,00,000 for 5 years, you’ll receive a fixed monthly payout that combines both your deposit and the interest earned — much like receiving a salary every month.

 Who Should Consider This Scheme?

The SBI Annuity Deposit Scheme is designed for individuals who value security, stability, and guaranteed income. It is ideal for:

• Retired individuals – who want a pension-like income after retirement.

• Salaried employees – who wish to create an additional fixed income stream.

• Parents – who want to send a steady monthly allowance to children studying elsewhere.

• Homemakers or senior citizens – seeking financial independence with low-risk investments.

• Conservative investors – who prefer safety over volatility in the stock market.

 Key Features of SBI Annuity Deposit Scheme 2025

Here’s a detailed look at the important features of this plan:

SBI Annuity Deposit Scheme Interest Rates 2025

SBI offers attractive interest rates under this scheme, ensuring decent returns without compromising safety.

Senior citizens enjoy an additional 0.50% interest, making it an even better option for retirees seeking stable income.

 Example of Monthly Returns

Here’s a simple illustration to understand how much you could earn through this plan (for a 3-year tenure):

The higher your one-time deposit, the greater your monthly income.
These payouts are calculated to include both principal and interest, so by the end of your tenure, the full deposit amount is returned through monthly installments.

 Benefits of the SBI Annuity Deposit Scheme

1. 100% Security: Backed by the State Bank of India — India’s most trusted banking institution.

2. Guaranteed Monthly Income: Perfect for those who need regular income for household or retirement expenses.

3. Flexible Tenures: Choose between 3, 5, 7, or 10 years as per your comfort.

4. Loan Facility: Borrow up to 75% of your deposit if you need urgent funds.

5. Higher Interest for Senior Citizens: Extra benefits for retirees and pensioners.

6. Simple Application Process: Can be started both online and offline with minimal paperwork.

7. Nomination Facility: Secure your family’s future by nominating a beneficiary.

 Drawbacks to Consider

While the scheme is reliable, it’s essential to understand its limitations before investing:

• Low Liquidity: Your funds remain locked for the chosen tenure unless you avail a loan.

• Taxable Interest: The interest earned is taxable according to your income slab.

• Moderate Returns: Returns are lower compared to high-risk options like mutual funds or equity investments.

Despite these minor drawbacks, it remains an excellent option for individuals prioritizing safety and regular income over aggressive growth.

 How to Apply for the SBI Annuity Deposit Scheme

You can open an SBI Annuity Deposit either offline at your nearest branch or online via internet banking.

Offline Process:

1. Visit your nearest SBI branch.

2. Request the Annuity Deposit Scheme form.

3. Fill in details such as the deposit amount, tenure, and nominee.

4. Submit KYC documents (PAN, Aadhaar, address proof).

5. Deposit the lump-sum amount and get a receipt for reference.

Online Process:

1. Log in to SBI Net Banking.

2. Navigate to Deposit Schemes → Annuity Deposit Scheme.

3. Enter your desired deposit amount and tenure.

4. Confirm your details and make the payment online.

Once processed, your monthly annuity payouts will automatically begin from the following month.

 Who Should Avoid This Scheme?

• Young investors seeking high growth or market-linked returns.

• Individuals needing liquidity, as the funds remain locked for the tenure.

• High-income taxpayers, since the interest earnings are fully taxable.

For these investors, diversified options like Mutual Funds, NPS, or PPF may provide better long-term results.

 Final Thoughts

The SBI Annuity Deposit Scheme 2025 is one of the most reliable and straightforward financial products available for individuals seeking a steady monthly income with zero risk. It combines the trust of SBI, predictable payouts, and flexible tenure options, making it ideal for retirees, homemakers, and conservative investors.

While the returns are moderate compared to market-linked instruments, the peace of mind and guaranteed stability it offers make it an invaluable addition to any low-risk portfolio.

If your goal is to secure your monthly expenses and enjoy financial independence, the SBI Annuity Deposit Scheme is a smart and dependable choice in 2025.