SBI Annuity Deposit Scheme
Customers can deposit a one-time lump sum amount into the SBI Annuity Deposit Scheme, which is a monthly income scheme, and get repayment in the form of annuity payments that include both the principal and interest. This deposit plan's maturity period can be 36, 60, 84, or 120 months. Residents and minors can open an SBI Annuity Deposit Scheme either individually or jointly. This annuity plan will be subject to the rate of interest that is applicable to term deposits. SBI last modified the interest rates on its term deposits on June 14, 2022, and on SBI Annuity Deposit Scheme for a period of 36, 60, 84, or 120 months, the bank is currently promising an interest rate of 5.45% - 5.50% for the general public and 5.95% - 6.30% for senior citizens.
In order to pay a monthly annuity, SBI has said on its website that “Payment of annuity on the anniversary date of the month following the month of deposit. If that date is non-existent (29th, 30th & 31st), it will be paid on the 1st day of the next month." Additionally, nomination on behalf of an individual is allowed, and the scheme includes an overdraft or loan facility that provides up to 75% of the account balance. For deposits up to Rs. 15,00,000, premature withdrawal is permitted but with a penalty which will be the same as applicable on term deposits, and premature payment is permitted without restriction in the event of the depositor's death.
Post Office Monthly Income Scheme Account (MIS)
A single adult can open a Post Office Monthly Income Scheme Account (MIS), as well as joint accounts with up to three other adults, a guardian on behalf of a minor or a person of unsound mind, and a minor over the age of 10. The minimum deposit required to open the account is ₹1000 and in multiples of ₹1000. The maximum investment limit is INR 4.5 lakh for a single account and INR 9 lakh for a joint account. The Post Office MIS scheme has a taxable interest rate of 6.6% annually (no additional benefit for senior citizens), which is payable on a monthly basis, starting on the day of account opening and continuing until the maturity period of 5 years.
When the account reaches its maturity date, which is five years from the date of opening, it may be closed. If the account holder passes away before the account's maturity, the deposit amount will be paid to the nominee or legal heirs. No deposit can be withdrawn prematurely before the year from the date of deposit has passed. A 2 per cent penalty is applied after the first year of account opening for premature withdrawals made before the third year, and a 1 per cent penalty is applied by the post office for withdrawals made after the third year but before the fifth year. It can be clearly seen that Post Office Monthly Income Scheme Account (MIS) is offering a higher interest rate than SBI Monthly Income Scheme, along with similar benefits.
