SBI FD Monthly Income Scheme

The State Bank of India does not have a standalone product officially called "Monthly Income Scheme." Instead, it offers the SBI Annuity Deposit Scheme, where a one-time lump sum pays you monthly instalments consisting of both principal and interest. The Annuity Deposit Scheme rates are effective from 15 December 2025.

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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's monthly income scheme:

Regular Monthly Income:
Receive fixed monthly EMIs that include both interest and part of the principal.
Deposit Tenure:
36/60/84 or 120 months
Interest Rates:
SBI MIS interest rates vary from 3.05% to 7.05%, including senior citizens FD rates.
Minimum and No Maximum Deposit:
Minimum deposit starts at ₹1,000 or ₹25,000 (depending on the scheme), with no upper limit.
Premature Withdrawal:
Allowed with a penalty (typically 1% of the interest rate) for amounts up to ₹15 lakhs.
Loan or Overdraft Facility:
You can avail an overdraft or SBI loan against FD up to 75% of the principal amount invested.
Nomination Facility:
Nomination is available for both individual and joint accounts.
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.

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).
Passbook Issued:
An updated passbook is provided for tracking your investment.
Safety and Security:
Backed by SBI, offering high safety for your capital.
Suitability:
Ideal for conservative investors, retirees, and those seeking predictable monthly cash flows.

Latest SBI MIS Interest Rate

The following are the MIS interest rate ranges for general, senior and special schemes for deposits below ₹3 crore, effective from 15 December 2025 (last verified in August 2026):

Customer Type	Interest Rate Range (2026)
General	3.05% – 6.45% p.a.
Senior Citizens	3.55% – 7.05% p.a.
Special Schemes	Up to 7.05% p.a.

*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:

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.

Via Mobile App

Download and log in 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 the nominee and maturity instructions.
Review your details, accept the terms and conditions, and click ‘Submit’ to finalise your application.

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:

Assured Monthly Income:
Fixed and regular monthly payouts are ideal for retirees and those seeking a predictable cash flow.
Low Risk:
Backed by India’s largest public sector bank, ensuring the safety of the principal.
Flexible Tenure:
Choose from a variety of tenures, typically ranging from 3 to 10 years.
Premature Withdrawal:
Allowed with a minor penalty, providing liquidity in emergencies.
No Market Risk:
Returns are not affected by market volatility.
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:

Scheme Name	Key Features & Benefits	Tenure	Minimum/Maximum Deposit	Special Notes
SBI Tax Savings FD Scheme	Tax deduction up to ₹1.5 lakh under Section 123 (previously 80C); 5-year lock-in; no premature withdrawal or loan facility	5 to 10 years	₹1,000 / ₹1.5 lakh	Senior citizens get an additional 0.50% interest.
SBI FD Reinvestment Plans	Interest is compounded quarterly and paid at maturity, maximising returns	6 months to 10 years	₹1,000 / No upper limit	Available at all branches
SBI Multi-Option Deposit Scheme	Combines features of savings/current and FD; allows partial withdrawal in multiples of ₹1,000 without breaking the FD	1 to 5 years	₹10,000 / No upper limit	Offers liquidity plus FD returns
SBI Annuity Deposit Scheme	Lump sum deposit with fixed monthly payouts (principal + interest)	3, 5, 7, 10 years	Based on a minimum annuity of ₹1,000 or ₹25,000 with no upper limit	Ideal for regular monthly income
SBI Term Deposit Scheme	Standard FD with flexible tenure and payout options (monthly/quarterly/yearly or at maturity)	7 days to 10 years	₹1,000 / No upper limit	This is the Term Deposit (TDR) variant. Premature withdrawal and loan are generally allowed (subject to a penalty).

Frequently Asked Questions (FAQs)

Q. How can I get ₹10,000 interest monthly in SBI?

Ans: To earn a fixed ₹10,000 monthly interest from SBI, you may need to deposit a lump sum of roughly ₹16 lakh to ₹18 lakh, depending on the applicable interest rate, tenure and customer category. SBI offers options such as Fixed Deposit with monthly interest payout and the SBI Annuity Deposit Scheme. Under a monthly interest payout FD, only the interest is paid monthly while the principal remains invested until maturity. Under the Annuity Deposit Scheme, monthly instalments include both interest and a portion of the principal.
Q. What is the interest of ₹1 lakh FD in SBI per month?

Ans: The monthly interest on a ₹1 lakh Fixed Deposit (FD) in SBI generally depends on the applicable interest rate and whether the depositor qualifies for senior citizen rates. Based on the rate and payout option, the monthly interest may be around ₹450 to ₹550.
Q. Is there any monthly income scheme in SBI?

Ans: SBI does not have a product officially named Monthly Income Scheme, but it offers options such as the Annuity Deposit Scheme and Fixed Deposit with monthly interest payout. The Annuity Deposit Scheme provides monthly instalments consisting of principal and interest, while the monthly payout FD pays the interest periodically while keeping the principal invested until maturity.
Q. Is premature withdrawal allowed under SBI MIS?

Ans: Yes, premature withdrawal may be permitted subject to SBI's applicable terms and conditions and the relevant penalty. For deposits up to ₹5 lakh, the penalty may be 0.50% of the applicable interest rate, while deposits above ₹5 lakh may attract a 1% penalty.
Q. Can I get a loan against my SBI Fixed Deposit Monthly Income Scheme?

Ans: Yes, SBI allows eligible customers to avail of a loan or overdraft facility against certain fixed deposits, subject to applicable terms and conditions. The facility may generally be available up to a specified percentage of the deposit value, with the applicable interest rate linked to the FD rate.
Q. Can I change the tenure of my FD after opening the account?

Ans: No, the tenure selected when opening the FD generally cannot be changed during the deposit period. Customers may need to close the existing deposit, subject to applicable premature withdrawal rules, and open a new FD for a different tenure.
Q. What are the tenure options available for the SBI Fixed Deposit Monthly Income Scheme?

Ans: The SBI Annuity Deposit Scheme, which provides monthly instalments, offers fixed tenures of 36, 60, 84 and 120 months, equivalent to 3, 5, 7 and 10 years, subject to applicable scheme terms.
Q. Does SBI have a monthly income scheme?

Ans: Yes, SBI offers deposit options that can provide regular monthly income. A Fixed Deposit with monthly interest payout pays only the interest periodically while the principal remains invested until maturity. The SBI Annuity Deposit Scheme provides monthly instalments comprising both interest and a portion of the principal. The suitable option depends on whether the customer wants to preserve the principal or receive part of it through monthly instalments.