SBI Bank offers a safe and secure monthly income scheme in name of the State Bank of India (SBI) Annuity deposit scheme.
Under SBI annuity deposit scheme monthly payment is given to the account holder in equated monthly installment EMI.
This monthly income comprises a part of the principal and interest payment on reducing principal amount compounded quarterly rest and discounted to the monthly value.
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Who Can Invest in SBI Monthly Income Scheme
Any resident Indian can invest in the scheme. Single and joint holding is allowed.
The minimum deposit amount is 25000 in the SBI annuity deposit scheme however there is no maximum limit in the scheme.
You can also opt for the maturity option of 3 years 5 years 7 years and 10 years
SBI annuity deposit schemes give the same interest rate as a fixed deposit of matching duration.
Let’s say if you make an SBI annuity deposit scheme for 5 years then five years fixed deposit interest rates will be applicable.
SBI monthly income scheme interest rate
SBI MIS scheme interest rate is the same as a term deposit for public and senior citizens. Deposit a lump sum amount the Pension payment or income payment is given at the end of the month
The Current SBI interest rate is 5.30 % on deposits 3 to 5 years and 5.40% on deposits 5 to 10 years.
SBI MIS Loan
You can take a loan up to 75% of the balance amount of annuity. After the disbursal of the loan, the future annuity payment will be deposited in the loan account only.
Here universal passbook is issued in lieu of a time deposit. You can also transfer the scheme among the other branches of SBI.
The current interest rate for 3 to 5 years is 5.30 and for 5 years to less than 10 years, the interest rate is 5.40.
Should you invest in SBI Bank Monthly Income Scheme
As far as safety is concerned, SBI Bak MIS is a safe and secure scheme. Hense you can invest in the scheme and take monthly income. But the interest rate is quite low in the scheme. It is even lower than SCSS and post office MIS.
Additionally, the entire interest amount is taxable in your hand. If you are a senior citizen and looking for regular income alternatives then please consider reading Best Investment Options for Pensioners & Senior Citizens.
If you are not a senior citizen then you can also invest in LIC Schemes which offers safe and secure annuity income from your money. In addition, you can also look for SWP MF.
Additional reading
https://bestinvestindia.com/rbi-floating-rate-savings-bonds-2020/
https://bestinvestindia.com/senior-citizen-saving-scheme-scss/
https://bestinvestindia.com/pmvvy-vs-senior-citizen-saving-scheme/
https://bestinvestindia.com/top-5-post-office-tax-saving-scheme/
https://bestinvestindia.com/how-mutual-fund-swp-works-what-is-swp/
https://bestinvestindia.com/difference-between-sip-swp-and-stp/
