SBI Annuity Deposit Scheme Calculator
Estimate your guaranteed monthly payout instantly. Use our decision engine to see if this scheme fits your retirement plan.
Estimated Monthly Payout
ESTIMATEIncludes Principal + Interest Unlike a standard FD, this annuity scheme repays a portion of your principal every month along with interest. At maturity, the balance is zero.
*Actual branch payout may vary marginally due to tax deductions (TDS).
Sovereign Asset Transparency
Our calculations use standard banking compounding formulas: A = P * [r(1+r)^n] / [(1+r)^n – 1], where compounding is resolved on a quarterly basis. SBI interest rates are updated for 2026. General rate limits span 6.50% – 6.75%, while senior citizens enjoy an additional 0.50% to 1.00% markup depending on deposit tenures.
Understanding the SBI Annuity Deposit Scheme
The SBI Annuity Deposit Scheme is a specialized financial product offered by the State Bank of India. Designed primarily for individuals seeking a secure and steady stream of monthly cash flow, it requires investors to deposit a single, lump-sum amount. In return, the bank pays a series of fixed equated monthly installments (EMIs) over a pre-determined tenure.
Unlike standard Fixed Deposits (FDs) where your principal capital is returned in full at the end of the term, each monthly payout from the SBI Annuity Scheme contains **both the interest earned and a portion of your original principal**. By the end of the selected tenure, your capital balance is systematically liquidated to zero.
How the Payout is Calculated
The monthly payouts are calculated using the time-tested compounding principles of amortized payouts. Since the interest continues to compile on the declining balance of your principal, standard financial equations are applied to balance out the payments smoothly.
For a detailed walkthrough of the formula and a worked example, see: How SBI Calculates Annuity Deposit Payouts.
Each payout installment is equal, but the internal breakdown changes monthly: in the early stages, a larger portion of the EMI consists of accrued interest, while in the later stages, the payouts are predominantly made up of principal repayment.
Annuity Deposit vs. Fixed Deposit (FD) vs. Monthly Income Scheme (MIS)
Choosing the right fixed-income asset requires a side-by-side comparison of asset behavior and capital recovery:
| Feature Checklist | SBI Annuity Deposit | Standard Fixed Deposit | SBI Monthly Income Scheme |
|---|---|---|---|
| Principal Preservation | Liquidated monthly to ₹0 | Returned in full at maturity | Returned in full at maturity |
| Monthly Payout Size | Highest (Principal + Interest) | None (Paid at maturity) | Medium (Interest component only) |
| Investment Tenure | 3, 5, 7, or 10 Years | 7 Days to 10 Years | 5 Years (Standard) |
| TDS / Taxation | TDS applicable on interest portion | TDS applicable on full maturity interest | TDS applicable on monthly interest |
| Premature Withdrawal | Permitted only under extreme conditions | Allowed with standard 1% penalty | Allowed with nominal interest deduction |
Who is this Scheme Best For?
Ideal Candidate Scenarios
- Retirees Seeking Pension: Best for individuals who have received a lump-sum retirement corpus (provident fund, gratuity) and need to convert it into a guaranteed monthly paycheck.
- Passive Non-Investors: Great for those who do not have the risk tolerance for stock market-linked SWPs (Systematic Withdrawal Plans) and value the safety of India’s largest public-sector bank.
- Structured Expense Management: Perfect to fund recurring outlays, such as a child’s educational course fees over a 3-year or 5-year study term.
Scenarios to Avoid
- Legacy Estate Planners: If you wish to pass your complete principal capital down to your heirs or nominees, standard Fixed Deposits or SCSS (Senior Citizen Savings Scheme) are much better suited.
- Active Liquidity Seekers: Since premature closure is restricted, you should avoid blocking your emergency reserves or medical contingency funds in this annuity structure.
- High Tax-Bracket Earners: Because the interest is fully taxable at your personal income tax slab rate, high earners may find debt mutual funds or tax-free bonds more tax-efficient.
Important Rules, Edge Cases & Fine Print
1. Overdraft & Loan Access
In case of unexpected emergencies, depositors can secure a loan or overdraft of up to 75% of the remaining balance. Once availed, the subsequent monthly annuity payouts are routed directly to the loan account to offset the balance.
2. Minimum Payout Thresholds
SBI mandates that the minimum monthly payout (Annuity installment) must be at least ₹1,000 per month. Thus, depending on the chosen tenure and applicable interest rate, the corresponding minimum lump-sum investment will be determined.
3. Extreme Premature Closure
Premature closure is permitted for deposits up to ₹15,00,000 with standard interest penalties. However, in the unfortunate event of the primary depositor’s demise, all deposit size limits are waived to allow immediate payout to nominees.