SBI Monthly Income Scheme is not a separate "MIS account" like the Post Office MIS scheme. It is generally a Fixed Deposit where you have to invest a lump sum amount and the bank will pay monthly interest into you saving account.
Deposit Limit
- Minimum deposit amount: Rs. 1000
- Maximum deposit amount: No upper limit.
Interest Rate
| Deposit Tenure | Interest Rate (General) | Interest Rate (Senior Citizens) |
| 1 to 2 years | 6.25% | 6.75% |
| 2 to 3 years | 6.40% | 6.90% |
| 3 to 5 years | 6.30% | 6.80% |
| 5 to 10 years | 6.05% | 7.05% |
For Example
Say the investment is made for 3 year.
| Investment | Monthly Interest @6.40% For General Customer | Monthly Interest @7.05% For Senior Citizens |
| ₹1,00,000 | ₹533 | ₹588 |
| ₹5,00,000 | ₹2,667 | ₹2,938 |
| ₹1,00,0000 | ₹5,333 | ₹5,875 |
| ₹15,00,000 | ₹8,000 | ₹8,813 |
| ₹20,00,000 | ₹10,667 | ₹11,750 |
How to Open an SBI Monthly Income Scheme Online
Log in to SBI through Internet Banking using your username and password.
- Go to the Fixed Deposit (FD) section.
- Choose Monthly Interest Payout to receive interest every month.
- Enter the deposit amount, tenure (FD period) and payout instructions.
- Review the details and confirm the FD request.
- Once created, the monthly interest will be credited to your linked savings account.
- At maturity, your principal amount is returned as per the FD terms.
Who Should Choose It?
Suitable For:
- Retired people
- Anyone needing regular monthly income
- Investors seeking low-risk returns
Risk Level:
- Very low risk
- DICGC insurance covers up to ₹5 lakh per depositor per bank
Calculation
Annual Interest = Principal × Interest Rate
Monthly Income = Annual Interest ÷ 12
Tax Implication
- Interest earned from bank FD is fully taxable under "income from other source".
- Tax is applicable according to income-tax slab.
- SBI may deduct TDS if interest exceeds prescribed limits.
- Eligible customers can submit Form 121 to avoid TDS.
Premature Withdrawal
- If you withdraw an FD early:
- SBI may charge a penalty on interest.
- Interest earned may be reduced.
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