SBI MIS Scheme Benefits, Features, Eligibility and Interest Rates

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Updated on Feb 14, 2024

People looking for a regular monthly payout during the tenure of an investment must consider the beneficial SBI Annuity Deposit Scheme. Unlike the other banks, this monthly pay-out scheme from SBI offers a fixed EMI that includes the interest on the deposited amount and the interest accrued on it.

Through this post, we aim to throw light on different aspects of investing in an SBI Fixed Deposit. You will learn about the SBI Fixed Deposit interest rate, its features, benefits, and eligibility.

Benefits of Investing in SBI Fixed Deposit Monthly Income Scheme(MIS)

Have a look at the various benefits of SBI Fixed Deposit Monthly Income Scheme(MIS) that makes it a perfect plan for those on a monthly income:

  1. Offers a steady source of income to meet the financial needs during your chosen tenure
  2. No restriction on the upper limit for deposits, so one can deposit as much as one can
  3. Best monthly payout scheme for those who want to invest a lump sum of money
  4. Best suited for retired people, who don’t want to live like a burden on others for their financial requirements
  5. Hassle-free account opening and an option to close with a mere 1% penalty for a premature closure

Features of the SBI Fixed Deposit Monthly Income Scheme (MIS)

Before you take a call on whether to invest in an SBI Fixed Deposit Scheme, check out the features of this beneficial scheme:

  • Deposit Amount: To open an SBI Monthly Scheme you can deposit a lump sum amount of not less than Rs. 25,000
  • Fixed Tenure: SBI allows investors to choose a fixed tenure of 36, 60, 84, and 120 months for the SBI Fixed Deposit Monthly Scheme
  • Premature Withdrawal: The best feature of the SBI Annuity Scheme is that it permits premature withdrawal for up to a maximum amount deposited of Rs. 15 lakhs
  • High-Interest Rate: The interest rates for SBI Annuity are the same as domestic term deposits and range between 6.5% to 7.5%
  • No Upper Deposit Limit: SBI Annuity Scheme comes with no upper limit for deposits. To get a minimum annuity EMI of Rs. 10,000, one must invest a minimum of Rs. 36,000
  • Loan Facility: An investor can also avail of a loan on the principal amount invested. For this, there is a provision to get EMIs
  • Nomination Facility: There is a provision to nominate someone for your account
  • Passbook: Instead of the receipt for the term deposit, you are given an updated passbook for this scheme

Types of SBI Bank FD Schemes

Below are some of the different types of SBI FD schemes: 

  1. SBI Tax Savings FD Scheme
  2. SBI FD Reinvestment Plans
  3. SBI Multi Option Deposit Scheme
  4. SBI Annuity Deposit Scheme
  5. SBI Term Deposit Scheme

Let’s check the details of the plan:

1. SBI Tax Savings FD Scheme

Criteria  Detail
Minimum Deposit INR 1,000
Tenure Min – 5 years, Max – 10 years
Loans facility Not available
Premature withdrawal facility Not available
Other Features – Interest compounded quarterly

– Tax benefits available u/s 80 C

2. SBI FD Reinvestment Plans

Criteria  Detail
Minimum Deposit INR 1,000
Tenure Min – 6 months, Max – 10 years
Loans facility Can avail of up to 90% of the total amount
Premature withdrawal facility – Available with a 0.5% penalty on amounts equal to or less than INR 5 lakhs

– For FD amount greater than INR 5 lakh, a penalty of 1% is imposed

Other Features – Auto-renewal of scheme available

– Interest compounded quarterly

– The scheme can be linked to your SBI account (Savings or Current)

3. SBI Multi Option Deposit Scheme

Criteria  Detail
Minimum Deposit INR 10,000
Tenure Min – 1 year, Max – 5 years
Loans facility Available
Premature withdrawal facility – Can be made in multiples of INR 1,000 (TDR/STDR rules)
Other Features – Available with nomination facility

– The scheme can be linked to your SBI account (Savings or Current)

4. SBI Annuity Deposit Scheme 

Criteria  Detail
Minimum Deposit INR 25,000 for a monthly annuity of INR 1000
Tenure Ranges between 36 months to 120 months
Loans facility Available up to 75%
Other Features – A one-time payment option is available

– Allows the facility of nomination

5. SBI Term Deposit Scheme

Criteria  Detail
Minimum Deposit INR 1000
Tenure Min – 7 days, Max – 10 years
Loans facility Available up to 90% of the deposit amount
Premature withdrawal facility – A 0.5% penalty is imposed on amounts equal to or less than INR 5 lakhs for premature withdrawal

– For FD amount greater than INR 5 lakh, a penalty of 1% is imposed

Other Features – Allows the facility of nomination

– Can be converted from regular term deposit to cumulative term deposit

– Scheme can be auto-renewed

Eligibility for SBI Annuity Fixed Deposit

To enroll for an SBI Annuity Fixed Deposit an interested investor must fulfill the following criteria:

  1. Only Indian residents are eligible to apply for an SBI Annuity scheme, and it is not open to NRE or NRO individuals
  2. Interested investors can apply for Term Deposit Account or Special Term Deposit Account
  3. There is no maximum deposit amount limit, but the minimum deposit amount should not be less than Rs. 25,000 for these accounts
  4. Investors can choose to invest for 36, 60, 84, and 120 months of tenure
  5. These plans offer tax benefits to the investor under section 80C of the Income Tax Act, 1961
  6. The SBI fixed deposit interest rate may vary from 6.5% to 7.5% for senior citizens
  7. One person can be nominated for individual accounts, but there is a provision to add more than one nominee for a joint account

SBI Bank Fixed Deposit Rates

There is no difference between the interest rate applied for a domestic term deposit and an Annuity Deposit Scheme

Have a look at the revised SBI MIS fixed deposit interest rates effective from 15th February 2023:

Policy Tenure

Revised Interest Rate for Senior Citizens

Revised Interest Rate for General Public

36 Months

7%

6.5%

60 Months

7.5%

6.5%

84 Months

7.5%

6.5%

120 Months

7.5%

6.5%

What are the Ways to Open an SBI FD Account? 

1. Via Internet Banking

You can open an SBI FD account online via Internet Banking by following the steps below:

  • Go to the official portal of SBI Bank and log in to SBI NetBanking
  • Look for the ‘Term Deposits’ tab under ‘Deposit Scheme’
  • Next, choose the FD type and click on the ‘Proceed’ button
  • Submit the necessary details as required like nominee details, maturity amount instructions, etc.
  • Carefully read the ‘Terms and Conditions’ and accept them
  • Lastly, click on the ‘Submit’ button to complete the process

2. Via Mobile App

An applicant can also open an SBI FD account through the SBI mobile app. Here are the steps:

  • First, you must download the SBI Yono app on your mobile
  • Now, log on to the app and choose the FD option you want to purchase
  • Select the option – Fixed Deposits or Term Deposits
  • Submit the required details of the nominee and maturity
  • Lastly, click on the ‘Submit’ button to complete the account opening process after reading the terms and conditions

3. Open an SBI FD Account via Offline mode (bank visit) 

To open an SBI FD account offline, you must visit the nearest branch of SBI Bank. From the bank help desk, you can collect the FD application form. Duly fill out the form and submit it along with the deposit amount. You will be given an FD receipt as proof once your account is successfully processed.

Documents Needed to Open SBI FD 

Below are the documents required to open an FD account in the SBI:

  • Duly filled form of SBI FD Account
  • Passport size photographs (4 nos.)
  • ID proof like PAN card, Aadhaar card, Voter ID Card, Driving License or Passport
  • Proof of address like PAN, Aadhaar, Voter ID Card, Passport or Driving License
  • Age proof like birth certificate, school passing certificate, etc.
  • Form 60 or 61 of the Income Tax Act
  • Bank account details like IFSC code, bank branch, etc.

SBI Fixed Deposit Calculator

One can calculate the SBI fixed deposit interest using the online SBI FD maturity value calculator. However, keep a few things in mind while using this online interest rate calculator. Firstly, the interest it compounds is quarterly. Secondly, the interest rate or value calculated by this calculator is indicative, you can get the actual rate printed on your fixed deposit receipt.

To Conclude

In a nutshell, grab the best opportunity to get the high SBI Fixed Deposit interest rate by depositing in SBI Annuity Deposit Scheme. It is a perfect deposit to expand your monthly income that gives better returns than traditional bank fixed deposits.

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FAQs: SBI Fixed Deposit Monthly Income Scheme

Which is the best FD for monthly income?

The best FD options for monthly income are:

#1 SBI Annuity Deposit
#2 Kotak Bank FD
#3 Axis Bank FD
#4 IDFC Bank FD
#5 HDFC Bank FD

What is the monthly income of FD interest in SBI?

The interest rate of the SBI monthly income scheme fixed deposit ranges from 3.5% to 7.25%. The higher rates are for senior citizens.

Does SBI offer a monthly income scheme?

Yes, SBI Annuity Deposit Scheme offers monthly income to investors on their deposited amount. It works more like a loan for their initial deposit in the form of EMIs.

How does the SBI annuity deposit scheme work?

The Annuity deposit from SBI accepts a lump sum amount from the investor and this deposit is repaid to the investor in Equated Monthly Instalments (EMIs) over a period of time. These EMIs include the deposited amount and interest on its principal amount.

Which is better: an FD or an annuity?

Annuity plans offer higher interest rates as compared to fixed deposits. The interest rate in an annuity plan may fluctuate based on market fluctuations but still, they are higher than standard fixed deposits.

What is the SBI fixed deposit double scheme?

Also known as, the Special Term Deposit, an SBI Fixed Deposit Double Scheme is the best way for investors to double up their investment at the time of maturity. It is a reinvestment plan, wherein the investor can fetch high returns on their invested capital along with the accrued interest on that amount.

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Mar 30, 2023
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