[Editor’s Note: Due to some unexpected mix-up, we mentioned a wrong amount and incorrect payment type. The error has been rectified. Inconvenience is regretted.)
In today’s financial landscape, people are no longer content with simply saving money—they want it to grow and generate consistent returns. This shift has encouraged many to move beyond traditional savings tools in search of options that offer both capital protection and a dependable monthly income.
For those seeking a regular income through a one-time investment, especially retirees or risk-averse investors, certain banking schemes can be particularly appealing. One such offering comes from the State Bank of India, which provides an ‘Annuity Deposit Scheme’ designed to ensure predictable monthly earnings.
Under this scheme, investors deposit a lump sum amount upfront. In return, the bank credits a fixed monthly payout to their account. A key advantage here is clarity—you know in advance how much income you will receive each month, making financial planning far easier and more reliable.
Predictable Income, Practical Flexibility
The monthly payout under this scheme includes both the principal and the interest, distributed in installments over the chosen tenure. This structure makes it a safe and dependable investment option. For instance, a deposit of ₹10 lakhs could yield around ₹25,000 per month, although the exact amount depends on interest rates and tenure.
Interest is calculated similarly to Fixed Deposits and compounded quarterly, enhancing overall returns. Getting started is simple, with a minimum investment requirement of just ₹1,000 and no upper cap. Investors can choose a tenure ranging from 3 to 10 years, with payouts beginning as early as the next month.
Additionally, the scheme offers liquidity in times of need. Investors can avail a loan of up to 75% of the deposited amount, ensuring that funds are not entirely locked away. Overall, it stands out as a practical choice for those seeking financial stability alongside steady income.
Find Out How?
SBI Annuity Deposit Scheme lets you invest ₹10 lakhs once for fixed monthly payouts over 3-10 years, blending interest (7-7.5% p.a.) and principal repayment—like reverse loan EMI. For 10-year tenure at 7.25%, expect ~₹11,740/month.
Payouts start next month, quarterly compounded, maturing at zero balance. Ideal for retirees.
Please do verify rates at SBI branch.
Sample Payout Breakdown
(First 12 months on ₹10L, 10-yr @7.25%)
| Month | Interest (₹) | Principal (₹) | Balance (₹) | Total Payout (₹) |
|---|
| Month | Interest (₹) | Principal (₹) | Balance (₹) | Total Payout (₹) |
|---|---|---|---|---|
| 1 | 6041.67 | 5698.44 | 994301.56 | 11740.10 |
| 2 | 6007.24 | 5732.87 | 988568.70 | 11740.10 |
| 3 | 5972.60 | 5767.50 | 982801.20 | 11740.10 |
| 4 | 5937.76 | 5802.35 | 976998.85 | 11740.10 |
| 5 | 5902.70 | 5837.40 | 971161.45 | 11740.10 |
| 6 | 5867.43 | 5872.67 | 965288.78 | 11740.10 |
| 7 | 5831.95 | 5908.15 | 959380.62 | 11740.10 |
| 8 | 5796.26 | 5943.85 | 953436.78 | 11740.10 |
| 9 | 5760.35 | 5979.76 | 947457.02 | 11740.10 |
| 10 | 5724.22 | 6015.88 | 941441.14 | 11740.10 |
| 11 | 5687.87 | 6052.23 | 935388.91 | 11740.10 |
| 12 | 5651.31 | 6088.80 | 929300.11 | 11740.10 |
Summary
The State Bank of India’s Annuity Deposit Scheme offers a secure way to generate monthly income from a one-time investment. With predictable payouts, flexible tenure, and loan facility, it suits retirees and risk-averse investors. Interest is compounded quarterly, and even small investments can begin this journey toward steady, reliable financial inflow.
