SBI Fixed Deposit Monthly Income Scheme: Check Benefits, Features, Eligibility and SBI FD Rates 2023

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Updated on Apr 27, 2023

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.

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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

Eligibility for SBI Annuity Fixed Deposit

To enrol 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 fixed deposit 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%

Popular General Insurance Companies India, 2023

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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