INSUBCONTINENT EXCLUSIVE:
The annuity deposit is available for 3 years, 5 years, 7 years and 10 years, according to SBI.State Bank of India (SBI), the largest lender
of the country, offers annuity deposit account, which can be opened by all resident individual including minors
Under SBI's annuity scheme, a lump sum amount is deposited by an investor which is repaid to the customer over a period in equated monthly
installment (EMI) which comprises part of principle amount and interest on the reducing principle amount as well, according to SBI's
fixed deposit (FD) account of the term opted by the person.Minimum/maximum limitThe minimum deposit amount for annuity deposit is based on
minimum monthly annuity Rs 1000 for the relevant period
i.e for 3 yrs, minimum deposit amount will be Rs
5 years, 7 years and 10 years, according to SBI.Maturity amountIn annuity deposit, as part of the principle and interest on reducing
principle is paid in installments over a period of time hence at maturity date, the maturity amount remains zero.How it differs from
recurring deposit (RD) and fixed deposit (FD)In recurring deposit account customer makes the payments in installments and receives the
maturity amount at maturity date while annuity deposit accepts one time deposit and that amount plus interest on reducing principle is
repaid to the customer in installments over the tenor selected by him/her.In case of fixed deposit (FD) account, an investor makes one time
deposit and receives the maturity amount at maturity date which comprises principal and interest in case of special term deposit and
principal only in case of term deposit as interest is paid at periodic interval
Annuity deposit accepts one time deposit and amount is repaid to the customer over the tenor selected by him/her, along with interest, in
equated monthly installments, according to SBI.Other featuresThe name(s), mode of operation and branch of newly generated annuity deposit
account is same as in debit account, from which annuity deposit account is funded
While opening an annuity deposit account, an investor is provided with an option to retain the nominee(s) for deposit account as in debit
account from which it is funded.Get Breaking news, live coverage, and Latest News from India and around the world on
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