To receive a monthly payment of Rs 10,000 through an interest-generating scheme in SBI, you can utilize specific deposit products designed for regular income. One effective method involves making a one-time lump sum deposit into a scheme like the SBI Annuity Deposit Scheme.
Understanding the SBI Annuity Deposit Scheme
The SBI Annuity Deposit Scheme is designed for individuals who wish to make a one-time deposit and receive a fixed monthly income. This scheme helps you convert your lump sum savings into a steady stream of income over a chosen period.
Key Details for Rs 10,000 Monthly Income:
Based on the prevailing interest rates, you would need to make a specific deposit to achieve a monthly income of Rs 10,000.
- Required One-Time Deposit: To receive Rs 10,000 every month, a customer typically needs to make a one-time deposit of Rs 5,07,964.
- Interest Rate: This monthly return is generated based on an interest rate, which in a common scenario for this scheme, could be around 7 percent (subject to change as per bank's policy and tenure).
- Nature of Payment: It's important to understand that the Rs 10,000 you receive monthly is an annuity payment. This means it includes both a portion of your principal deposit and the interest earned on the remaining principal balance. The principal gradually decreases over the chosen tenure as you receive monthly payments.
How It Works
The Annuity Deposit Scheme functions similarly to a reverse loan. Instead of borrowing money and paying interest, you deposit a lump sum, and the bank pays you back in equated monthly installments (EMIs) that include both your principal and the interest earned.
Here's a simplified breakdown:
- Lump Sum Deposit: You deposit Rs 5,07,964 (or the current required amount) into the SBI Annuity Deposit Scheme.
- Interest Calculation: The bank calculates interest on the outstanding principal amount at the agreed rate (e.g., 7%).
- Monthly Payout: You receive Rs 10,000 every month. This payment is structured so that it comprises both the interest earned for that month and a part of your original principal.
- Tenure: The duration for which you receive these payments depends on the initial deposit amount, the interest rate, and the monthly payout desired. The Rs 5,07,964 deposit to yield Rs 10,000 monthly is typically calculated for a specific tenure, which can vary (e.g., 36, 60, 84, or 120 months).
Steps to Avail the Scheme
If you are considering this option, here are the general steps:
- Visit an SBI Branch: It is advisable to visit your nearest State Bank of India branch to get the most current information regarding interest rates, required deposit amounts, and available tenures for the Annuity Deposit Scheme.
- Consult with Bank Officials: Discuss your financial goals and the specific monthly income you desire. They can help you calculate the exact deposit required based on current rates and your chosen tenure.
- Complete Documentation: Fill out the necessary application forms and provide required Know Your Customer (KYC) documents.
- Make the Deposit: Deposit the calculated lump sum amount.
- Start Receiving Payments: Once the deposit is processed, you will start receiving your Rs 10,000 monthly payment directly into your linked SBI savings account.
Important Considerations
- Interest Rate Fluctuations: While 7% is mentioned as an example, interest rates are subject to change based on SBI's policies and market conditions. Always confirm the current rates before depositing.
- Tax Implications: The interest component of your monthly annuity payment is taxable as per income tax laws.
- Liquidity: Annuity schemes typically have a lock-in period. While premature withdrawal options might exist, they usually come with penalties.
- Inflation: Over time, the purchasing power of a fixed monthly income of Rs 10,000 may diminish due to inflation.
