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 an FD, this annuity scheme repays a portion of your principal every month along with interest. At maturity, balance is zero.
*Actual branch payout may vary marginally due to tax deductions (TDS).
What is the SBI Annuity Deposit Scheme?
The SBI Annuity Deposit Scheme is a specialized financial product designed to provide individuals—especially retirees and pensioners—with a guaranteed, steady monthly income. By making a one-time lump sum deposit, the State Bank of India repays you in Equated Monthly Instalments (EMIs) over your chosen tenure (3, 5, 7, or 10 years).
Often confused with the SBI Monthly Income Scheme (MIS) or standard Fixed Deposits, the annuity scheme is fundamentally different. While an FD pays you only the interest and returns your entire principal at maturity, the annuity payout includes both a portion of your principal and the interest earned on the reducing balance. Because the principal is continuously paid back to you every month, the final maturity value of the deposit becomes zero.
Using our SBI Annuity Scheme Calculator helps you accurately estimate your exact monthly payout based on the latest 2026 interest rates. This allows you to plan your systematic cash flow effectively, ensuring your living expenses are covered without needing to rely on manual EMI calculations.
Is the SBI Annuity Scheme Good For You?
Best For (Ideal Use Cases)
- Retirees & Pensioners: Individuals wanting a fixed, guaranteed pension replacement.
- Capital Protection: Risk-averse investors who prioritize sovereign guarantee (zero market risk).
- Estate Planning: People managing a large lump sum who want controlled withdrawals to avoid overspending.
Not Ideal For
- Wealth Accumulation: The deposit is completely exhausted at maturity (Value = ₹0). It does not build long-term wealth.
- High Liquidity Needs: Premature withdrawal is heavily restricted compared to a standard FD.
- Beating Inflation: Fixed returns may not outpace high inflation over long tenures compared to equity.
Comparison: SBI Annuity vs FD vs Post Office MIS
| Feature | SBI Annuity Scheme | Standard SBI FD | Post Office MIS |
|---|---|---|---|
| What constitutes the payout? | Principal + Interest | Only Interest (if opted) | Only Interest |
| Value at Maturity | Zero (₹0) | 100% Principal Returned | 100% Principal Returned |
| Size of Monthly Cash Flow | High | Low | Low |
| Deposit Limits | No Upper Limit | No Upper Limit | Max ₹9 Lakhs (Single) |
Critical Scheme Rules & Edge Cases
1. Taxation (TDS)
The interest portion of your payout is fully taxable under "Income from Other Sources". SBI will deduct TDS if the interest exceeds ₹40,000 (₹50,000 for Senior Citizens). Submit Form 15G/15H to avoid TDS if eligible.
2. Early Withdrawal
Premature payment is permitted for deposits up to ₹15,00,000 (with applicable penalty). For larger amounts, premature withdrawal is strictly allowed only in the unfortunate event of the depositor's death.
3. Overdraft / Loan Facility
If you face a financial emergency, SBI allows an overdraft or loan of up to 75% of the balance principal amount. Once the loan is disbursed, further annuity payments are routed directly to the loan account.