SBI FD Monthly Income Scheme

How Does the SBI Monthly Income Scheme Work?

The SBI MIS lets you invest a lump sum for a set tenure and earn a fixed monthly income from it. Your original investment stays fully intact right up to maturity; the only interest you've earned gets paid out to you each month. To open one, your deposit needs a minimum investment to generate a monthly payout of ₹1,000. Depending on the chosen tenure, SBI FD rates generally range from 3.05% to 6.45% p.a. for the general public, with senior citizens receiving an enhanced rate of up to 7.05% p.a.

Features of the Monthly Income Scheme in SBI

Below are the key features of the State Bank of India monthly income scheme:

1. Regular Monthly Income:

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

2. Deposit Tenure:

   36/60/84 or 120 months

3. Interest Rates:

   SBI MIS interest rates vary from 3.05% to 7.05%, including senior citizens FD 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 or Overdraft Facility:

   You can avail an overdraft or SBI loan against FD up to 75% of 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.

Interest Payout Date Rules:

If your payout date falls on a non-existent day (the 29th, 30th, or 31st of a shorter month), the interest will be credited on the 1st day of the next month.

1. Taxation:

   Interest earned is taxable according to your income tax slab, and TDS applies if the annual interest exceeds ₹50,000 (₹1,00,000 for senior citizens).

2. Passbook Issued:

   An updated passbook is provided for tracking your investment.

3. Safety and Security:

   Backed by SBI, offering high safety for your capital.

4. Suitability:

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

Latest SBI MIS Interest Rate

*SBI MIS interest rates w.e.f. 15 December 2025

How to Open SBI Fixed Deposit Monthly Income Scheme?

You can open a monthly income scheme in SBI 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

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)

Benefits of SBI Fixed Deposit Monthly Income Scheme

Below are the benefits of the SBI monthly scheme that people should consider:

1. Assured Monthly Income:

   Fixed and regular monthly payouts are 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. Premature Withdrawal:

   Allowed with a minor penalty, providing liquidity in emergencies.

4. No Market Risk:

   Returns are not affected by market volatility.

5. Easy Application:

   Can be opened online or at any SBI branch.

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 MIS Scheme 2026 gives investors a dependable financial anchor, with steady monthly payouts. It is a solid pick for senior citizens and conservative investors who value predictability over higher risk. You can estimate your exact payouts in advance using the SBI Annuity Deposit Scheme Calculator. TDS is applicable in SBI MIS. Depositors can submit Form 121 to get TDS exemption if their total income is below the taxable limit.