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Annuity Deposit Scheme Calculator
Calculate your monthly annuity income from SBI's Annuity Deposit Scheme (or any bank's version), compare 3/5/7/10-year tenures, or find the exact lump sum you need to deposit for your target monthly income.
Calculate Your Monthly Annuity
Compare All 4 Tenures With the Same Deposit
Uses SBI's current indicative slab rates: 6.30% (3-yr) and 6.05% (5/7/10-yr) for general customers, +0.50% for senior citizens. Edit these in the Monthly Annuity tab if your bank quotes different rates.
Find the Deposit Needed for Your Target Monthly Income
What Is the Annuity Deposit Scheme?
The Annuity Deposit Scheme is a bank deposit product — most widely known through the State Bank of India (SBI) Annuity Deposit Scheme — where you hand over a lump sum once, and the bank pays it back to you as fixed Equated Monthly Instalments (EMIs) over a tenure you choose, typically 3, 5, 7 or 10 years. Every instalment contains two parts: a slice of your original principal and the interest earned on the remaining balance. By the final instalment, your deposit balance reaches exactly zero. It works like a home loan EMI running in reverse — instead of you repaying a bank, the bank is repaying you.
This makes it fundamentally different from a regular Monthly Income Fixed Deposit, which pays out only the interest each month and returns your full principal at maturity. An Annuity Deposit consumes both principal and interest as income, which usually means a noticeably higher monthly payout — but nothing is left over once the tenure ends.
SBI Annuity Deposit Scheme: Rates, Tenure and Deposit Limits
| Tenure | General Public (indicative) | Senior Citizens (indicative) |
|---|---|---|
| 3 years (36 months) | 6.30% p.a. | 6.80% p.a. |
| 5 years (60 months) | 6.05% p.a. | 7.05% p.a. |
| 7 years (84 months) | 6.05% p.a. | 7.05% p.a. |
| 10 years (120 months) | 6.05% p.a. | 7.05% p.a. |
These rates track SBI's card rate for term deposits of the corresponding tenure and change whenever SBI revises them — always verify the live rate on SBI's official site or with your branch before depositing. This calculator lets you override the rate field with whatever your bank currently quotes.
SBI does not set a single fixed minimum deposit figure. Instead, it requires the resulting monthly instalment to be at least ₹1,000, which means the effective minimum lump sum depends on the tenure and rate you pick — roughly ₹50,000-₹60,000 for a 5-year tenure at current rates, for example. There is no upper limit on how much you can deposit. The scheme is open to resident individuals, including minors, held singly or jointly, and a passbook is issued instead of the usual fixed deposit receipt.
How the Monthly Annuity Is Calculated
Banks compound the interest on your reducing balance quarterly, then convert that into an equivalent fixed monthly instalment for your chosen tenure — the same underlying mathematics as a loan EMI, just running in the opposite direction. This calculator mirrors that method: it converts your quarterly-compounded annual rate into an effective monthly rate, then applies the standard annuity formula to find the one fixed monthly payment that brings your deposit balance to exactly zero by the end of the tenure, with interest calculated on the reducing balance each month.
Because each bank may round or apply day-count conventions slightly differently, treat this calculator's output as a close estimate rather than the exact paisa figure your passbook will show — always confirm the precise instalment with your bank before depositing a large sum.
Premature Withdrawal, Loan Facility and Nomination
Premature closure of an Annuity Deposit Scheme account is allowed for deposits up to ₹15 lakh, subject to the usual premature-withdrawal interest penalty that applies to term deposits of that tenure. If the depositor passes away before the tenure ends, premature closure is allowed without any penalty and without a deposit-amount limit, so nominees or legal heirs can access the funds. SBI also permits a loan or overdraft of up to 75% of the balance in eligible cases — once disbursed, future annuity instalments are usually applied towards repaying that loan rather than paid out directly. Nomination is available and limited to individuals, and the account can typically be transferred between branches.
Tax Treatment and Deposit Safety
The interest portion of every annuity instalment is taxable as Income from Other Sources at your applicable income tax slab rate — exactly like ordinary fixed deposit interest. The bank deducts TDS under Section 194A if the total interest paid to you in a financial year, across your accounts at that bank, crosses the standard FD TDS threshold (₹40,000 for general customers, ₹50,000 for senior citizens). Since the taxable interest portion is largest in the early months of the tenure (when the outstanding balance is highest) and shrinks over time, your tax liability from this scheme is front-loaded even though the monthly payout itself stays flat.
Being a bank deposit, an Annuity Deposit Scheme account is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) — a wholly-owned subsidiary of the Reserve Bank of India (RBI) — up to ₹5 lakh per depositor per bank, covering both principal and interest. Any amount beyond ₹5 lakh at one bank is not insured, which is worth keeping in mind if you are depositing a large lump sum; splitting a very large amount across more than one bank keeps the full amount within DICGC cover.
Which Banks Offer an Annuity Deposit Scheme?
SBI runs the best-known and most widely searched version of this scheme, but it is not exclusive to SBI. Several other public sector banks offer comparable annuity or reverse-EMI deposit products — including Punjab National Bank, Canara Bank, Bank of Baroda and Union Bank of India — sometimes under slightly different names or with different minimum-deposit and tenure rules. Punjab National Bank additionally runs a distinct "Annuity Term Deposit Scheme for Road Accident Victims," which is a separate, specific-purpose product and not the general-purpose annuity deposit covered by this calculator. Because exact rates, tenures and minimum deposits vary by bank and change periodically, always check the specific bank's current scheme document before depositing.
Annuity Deposit vs Other Monthly-Income Options
| Option | Principal Returned? | Regulator | Risk |
|---|---|---|---|
| Annuity Deposit Scheme | No — consumed along with interest over the tenure | RBI (bank deposit) + DICGC insured up to ₹5L | None |
| Monthly Income FD | Yes — full principal returned at maturity | RBI (bank deposit) + DICGC insured up to ₹5L | None |
| Senior Citizen Savings Scheme (SCSS) | Yes — full principal returned at maturity | Ministry of Finance via India Post/banks | None |
| NPS Annuity (post-retirement) | No — consumed as lifelong income | PFRDA / IRDAI (insurer) | None (payout is fixed once purchased) |
If you are exploring pension and retirement-income options more broadly — including NPS, EPF, PPF, SCSS and insurance annuities side by side — our Best Pension Plan in India Calculator compares all of them together using your own numbers.
A Worked Example
Say you deposit ₹10 lakh in SBI's Annuity Deposit Scheme for a 5-year tenure at the current general-customer rate of 6.05% p.a. Using the quarterly-compounded-to-monthly method described above, this works out to a monthly annuity of roughly ₹19,342 for 60 months — a total payout of about ₹11.6 lakh, of which around ₹1.6 lakh is interest and the remaining ₹10 lakh is your own principal coming back to you. Compare that with parking the same ₹10 lakh in a Monthly Income FD at a similar rate: you would receive only the interest each month (roughly ₹5,000-5,500) but keep the full ₹10 lakh intact at the end of 5 years to reinvest or use as you wish. Neither is objectively better — the Annuity Deposit Scheme suits someone who wants to convert a lump sum into a larger monthly income and is comfortable using up the capital, while a Monthly Income FD suits someone who wants a smaller monthly cash flow while preserving the original amount.
Is the Annuity Deposit Scheme Right for You?
This scheme tends to suit retirees or anyone who has received a one-time lump sum — a retirement gratuity, an insurance payout, proceeds from selling property — and wants to convert it into a predictable, government-insured monthly income without taking on any market risk. It is less suitable if you might need the full lump sum back for an emergency or a large future expense, since premature closure above ₹15 lakh isn't allowed and even permitted premature closures attract a penalty. It is also worth comparing against simply doing a Systematic Withdrawal Plan (SWP) from a mutual fund or splitting the amount across SCSS and PPF, both of which can be modelled with our other calculators, since each option trades off differently between guaranteed income, market exposure, liquidity and tax efficiency.
Who Regulates Annuity Deposit Schemes?
An Annuity Deposit Scheme is a bank term deposit product, so it falls under the same regulatory umbrella as any other bank deposit in India: the Reserve Bank of India (RBI) regulates the bank's deposit-taking activity and interest-rate framework, while the Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary, insures the deposit up to ₹5 lakh per depositor per bank. This is different from NPS (regulated by PFRDA) or an insurance annuity plan (regulated by IRDAI) — all are loosely called "annuities" in everyday language, but they sit under different regulators with different protections.
Frequently Asked Questions
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Invest Know builds free, regulator-aligned financial calculators for India using real, cited data — never static guesses. Rates on this page reflect SBI's indicative term deposit slabs as of September 2026 and are for illustration only, not investment or tax advice. Always confirm current rates with your bank. Read more on our About Us page.