SBI Fixed Deposit Monthly Income Scheme

What is the SBI Fixed Deposit Monthly Income Scheme?

The SBI Fixed Deposit Monthly Income Scheme allows you to invest a lump sum amount for a fixed tenure, in return for which you receive monthly payouts. These payouts are structured as Equated Monthly Installments (EMIs), each comprising both interest earned and a portion of the principal. The interest rates typically range from 3.30% to 7.5%, depending on the tenure and the age of the investor, with higher rates for senior citizens.

This scheme is most beneficial for individuals who require a consistent monthly income, such as retirees or those without a regular salary. It is considered a safe investment option, backed by the State Bank of India, and offers flexibility in tenure and deposit amount

How to Open SBI Fixed Deposit Monthly Income Scheme?

You can open an SBI Fixed Deposit Monthly Income Scheme (MIS) through three convenient methods: Internet Banking, Mobile App, and by visiting a branch. Here’s a step by step guide for each method:

1. Via Internet Banking

   • Log in to your SBI NetBanking account from the official SBI portal.

   • Navigate to the ‘Term Deposits’ option under the ‘Deposit Scheme’ tab.

   • Select the type of Fixed Deposit you wish to open and click ‘Proceed’.

   • Enter all necessary details, including nominee information and maturity instructions.

   • Carefully read and accept the ‘Terms and Conditions’.

   • Click the ‘Submit’ button to complete the process.

2. Via Mobile App

   • Download and login to the SBI Yono app on your mobile device.

   • Select the ‘Deposits’ section and choose ‘Fixed Deposits’ or ‘Term Deposits’.

   • Click ‘Open Fixed Deposits’.

   • Fill in the required details such as nominee and maturity instructions.

   • Review your details, accept the terms and conditions, and click ‘Submit’ to finalize your application.

3. Via Offline Mode (Bank Visit)

   • Visit your nearest SBI branch.

   • Collect the FD application form from the help desk.

   • Fill out the form completely and attach the required documents (identity proof, address proof, photographs, PAN card, etc.).

   • Submit the form along with the deposit amount at the counter.

   • Once processed, you will receive an FD receipt as proof of your investment

FD Calculator

Total Investment

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₹500 ₹30L

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Rate of Interest (Yearly)

%

1% 15%

Rate of Interest (Yearly)

Time Period

Years

1 Year 15 Years

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Total Investment

Interest Earned

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Documents Required to Open SBI Fixed Deposit Monthly Income Scheme

• Duly filled FD account opening form

• Identity proof (PAN, Aadhaar, Voter ID, Driving License, or Passport)

• Address proof (as above)

• Passport-size photographs

• Proof of age (if applicable)

• Bank account details (account number, IFSC code, branch)

Features of SBI Fixed Deposit Monthly Income Scheme

Below are the key features of SBI Fixed Deposit Monthly Income Scheme:

1. Regular Monthly Income:

   Receive fixed monthly EMIs that include both interest and part of the principal.

2. Flexible Tenure:

   Choose from tenures of 3, 5, 7, or 10 years.

3. Interest Rates:

   Interest rates vary from 3.30% to 7.5%, with senior citizens eligible for higher rates.

4. Minimum and No Maximum Deposit:

   Minimum deposit starts at ₹1,000 or ₹25,000 (depending on the scheme), with no upper limit.

5. Premature Withdrawal:

   Allowed with a penalty (typically 1% of the interest rate) for amounts up to ₹15 lakhs.

6. Loan Facility:

   You can avail a loan against the principal amount invested.

7. Nomination Facility:

   Nomination is available for both individual and joint accounts.

8. Transferability:

   The FD can be transferred between SBI branches.

9. Taxation:

   Interest earned is taxable as per your income tax slab, and TDS applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).

10. Passbook Issued:

    An updated passbook is provided for tracking your investment.

11. Safety and Security:

    Backed by SBI, offering high safety for your capital.

12. Suitability:

    Ideal for conservative investors, retirees, and those seeking predictable monthly cash flows.

Eligibility Criteria for SBI Fixed Deposit Monthly Income Scheme

Below is the eligibility criteria for SBI Fixed Deposit Monthly Income Scheme:

1. Resident Individuals:

   Indian residents above 18 years of age are eligible to open an account.

2. Senior Citizens:

   Eligible for higher interest rates and special schemes.

3. Joint Accounts:

   Allowed for two or more individuals.

4. Trusts and Societies:

   Certain schemes permit trusts and societies to invest.

5. Non-Resident Indians (NRIs):

   Can invest through NRE or NRO accounts, subject to specific terms.

SBI Fixed Deposit Monthly Income Scheme Interest Rates

Benefits of SBI Fixed Deposit Monthly Income Scheme

Below are the benefits of SBI Fixed Deposits that people should consider:

1. Assured Monthly Income:

   Fixed and regular monthly payouts, ideal for retirees and those seeking predictable cash flow.

2. Low Risk:

   Backed by India’s largest public sector bank, ensuring safety of principal.

3. Flexible Tenure:

   Choose from a variety of tenures, typically ranging from 3 to 10 years.

4. Loan Facility:

   Loans or overdrafts up to 85–90% of the deposit value available against the FD.

5. Premature Withdrawal:

   Allowed with a minor penalty, providing liquidity in emergencies.

6. Tax Exemption Option:

   TDS exemption possible with submission of Form 15G/15H (if eligible).

7. No Market Risk:

   Returns are not affected by market volatility.

8. Easy Application:

   Can be opened online or at any SBI branch.

Tax Implications of SBI Fixed Deposit Monthly Income Scheme

1. Interest Income:

   Fully taxable as per the investor’s income tax slab.

2. TDS Deduction:

   Tax Deducted at Source (TDS) applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).

3. Tax Savings Scheme:

   Under the SBI Tax Savings Scheme, deposits up to ₹1.5 lakh are eligible for deduction under Section 80C of the Income Tax Act, but with a 5-year lock-in period.

4. Form 15G/15H:

   Investors not liable to tax can submit these forms to avoid TDS deduction.

Types of SBI Bank FD Schemes

Here are the main fixed deposit schemes offered by the State Bank of India, each catering to different financial needs:

Conclusion

The SBI Fixed Deposit Monthly Income Scheme stands out as a solid solution for individuals prioritizing safety, capital protection, and consistent monthly income. With its assured payouts, flexible investment options, and the backing of India’s largest public sector bank, the scheme is well-suited for retirees, conservative savers, and anyone needing reliable cash flow for regular expenses.

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