SBI MIS scheme: what banks offer for monthly income

SBI MIS scheme: the options that exist

When people ask for MIS in SBI, the monthly payout FD is usually what they need.

Monthly payout FD at banks

Most banks, SBI included, let you choose monthly interest on a fixed deposit. Because you receive the interest sooner, the bank pays a little less than its quarterly compounded rate, a discount that works out to a small fraction of a percent. Senior citizens get the bank's senior rate on top. Terms can range from a year to ten years, which is more flexible than the post office's fixed five year MIS.

SBI annuity deposit, in plain words

In an annuity deposit you place a lump sum, and the bank pays it back to you in equal monthly instalments over 3, 5, 7 or 10 years, each instalment containing some principal and some interest. At the end, the balance is zero. It suits someone who wants to spend down a sum evenly, for example to cover a fixed expense for five years, but it is not a way to keep your capital intact.

Best MIS scheme in bank vs post office

For most savers under 60, the post office MIS and a bank monthly FD are close; check current bank rates. For those over 60, SCSS usually beats both.

Other bank and insurer monthly income products

Some public sector banks, such as Bank of Baroda and PNB, call their monthly payout deposits monthly income plans. An insurer's monthly income plan is different: it is an insurance policy, often with lower effective returns and long lock ins. A state insurer's immediate annuity, sometimes sold as an MIS, is also a different product. Read the policy terms carefully, or stick to deposits if you want simplicity.

Which monthly income route fits you

• Under 60, want simplicity: post office MIS.
• Over 60: SCSS first, then MIS or a bank senior FD.
• Need flexible terms or more than ₹15 lakh: bank monthly payout FD.
• Want to spend the capital evenly: annuity deposit.

Try amounts on the MIS calculator.