The State Bank of India’s (SBI) annuity deposit scheme lets depositors invest a lump sum and receive equated monthly instalments (EMIs) comprising principal and interest. Interest rates are linked to SBI’s domestic term deposit rates, which were around 6.25 %–6.45 % for 1–2‑year tenures in July 2025. Tenures available include 3, 5, 7 or 10 years. Interest is compounded quarterly and paid monthly, and premature withdrawal is allowed only in cases of death or extreme hardship.
SBI Annuity Deposit Highlights
| Feature | Details |
|---|---|
| Tenure options | 36, 60, 84, 120 months |
| Interest rate | Same as SBI term deposit for corresponding tenure |
| Monthly payment | Principal + interest in EMI form |
| Eligibility | Residents and minors (through guardians) |
| Loan facility | Available up to 75 % of the deposit amount |
As with traditional FDs, senior citizens receive higher rates. Investors should check the latest rate card and understand that the annuity deposit’s monthly payment reduces the principal over time, unlike periodic interest payout FDs where principal remains intact.
