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Fixed Deposit Monthly Income

FD Monthly Income Scheme

Last Updated 02nd Aug 2021

  • Monthly Income Fixed Deposit schemes offer regular fixed income on a monthly basis. Interest earned is directly credited to the investor account per month.
  • Get a higher MIS interest rate upto 6.75%.
  • An individual can choose to invest in Monthly Fixed Deposits for a tenure of 7 Days to 10 Years.
  • It offers various benefits like premature withdrawal,overdraft and loan against FD is available.
  • State Bank of India offers the SBI Monthly Fixed Deposits scheme, enabling the customers to pay a one-time lump sum amount and receive the same in EMIs.
  • SBI MIS interest rate ranges from 2.90% to 5.10%
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What is a Monthly Income Fixed Deposit?

As the name suggests,Monthly Income Fixed Deposit are the deposits where the interest earned is credited directly back to the individual account per month. This type of investment vehicle is an ideal option for individuals who want to earn a regular fixed income on a monthly basis. The monthly income fixed deposits help in creating wealth and fetches higher interest than the savings account.

Interest Rates on Monthly Income FD Schemes

Bank Interest Rate Tenure
SBI Fixed Deposit 2.90% - 5.40% 7 Days - 10 Years
HDFC Bank Fixed Deposit 2.50% - 5.50% 7 Days - 10 Years
ICICI Bank Fixed Deposit 2.50% - 5.50% 7 Days - 10 Years
Axis Bank 2.50% - 5.75% 7 Days - 10 Years
ICICI Home Finance 4.30% - 6.45% 12 Months - 120 Months
Kotak Bank 2.50% - 5.30% 7 Days - 10 Years
PNB Housing Finance 5.90% - 6.70% 12 Months - 84 Months
IDFC First Bank 2.75% - 6.00% 7 Days - 10 Years
Bank of Baroda 2.80% - 5.25% 7 Days - 10 Years
Citibank 2.40% - 3.50% 7 Days - 1825 Days
IDBI Bank 2.70% - 5.30% 7 Days - 20 Years
Indian Bank 2.90% - 5.25% 7 Days - 10 Years
Indian Overseas Bank 3.40% - 5.20% 7 Days - 10 Years
OBC 3.00% - 5.30% 7 Days - 10 Years
PNB 3.00% - 5.25% 7 Days - 10 Years

Top Banks Monthly Income FD Interest Rates for Senior Citizens

Bank Interest Rate Tenure
SBI Fixed Deposit 3.40% - 6.20% 7 Days - 10 Years
HDFC Bank Fixed Deposit 3.00% - 6.25% 7 Days - 10 Years
ICICI Bank Fixed Deposit 3.00% - 6.30% 7 Days - 10 Years
Axis Bank 2.50% - 6.25% 7 Days - 10 Years
ICICI Home Finance 4.55% - 6.70% 12 Months - 120 Months
Kotak Bank 3.00% - 5.80% 7 Days - 10 Years
PNB Housing Finance 6.15% - 6.95% 12 Months - 84 Months
IDFC First Bank 2.75% - 6.50% 7 Days - 10 Years
Bank of Baroda 3.30% - 5.75% 7 Days - 10 Years
Citibank 2.90% - 4.00% 7 Days - 1825 Days
IDBI Bank 3.20% - 5.80% 7 Days - 20 Years
Indian Bank 3.40% - 5.75% 7 Days - 10 Years
Indian Overseas Bank 3.90% - 5.70% 7 Days - 10 Years
OBC 3.50% - 5.80% 7 Days - 10 Years
PNB 3.50% - 5.75% 7 Days - 10 Years

Benefits of FD Monthly Income Scheme

Some of the top benefits of investing in the monthly income option of FD are:

  • Monthly income FD scheme offers flexibility as the banks provide the option of monthly, quarterly or half-yearly income plans.
  • The monthly income fixed deposit offers a higher interest rate.
  • The premature withdrawal facility is available.
  • Some banks do not even deduct the TDS on FD interest earned.
  • FD monthly income schemes also provide the overdraft facility on the account linked with them.
  • Individuals can choose to invest in this plan for a tenure of 1 year to 10 years.
  • Individuals can also avail loan against Monthly Fixed Deposit Scheme.

Monthly Income FD Calculator

The monthly income FD calculator is an online calculator which helps in computing the monthly income earned through a fixed deposit. It is a user-friendly calculator and helps individuals save time in complex calculations. The tool is free of cost and individuals can use it multiple times and compare returns for different combinations of FD rates, tenure and amount.

Rate of Interest on FD Monthly Income Scheme

  • The interest rate offered on the Monthly Income FD scheme is similar to those in regular fixed deposits.
  • The interest rate on Monthly Income FD ranges from 1.75% to 6.75%
  • Most banks and NBFCs offer higher interest rate for senior citizens.
  • Some banks also offer higher interest rate to their past and current employees.

SBI Monthly Income Scheme (SBI MIS)

The State Bank of India offers an annuity scheme named as SBI Fixed Deposits monthly income scheme or SBI MIS. Under this scheme, customers get a fixed amount every month after depositing a one-time lump sum payment.

Features of the SBI Fixed Deposits Monthly Income Scheme are:

  • SBI MIS Scheme enables the customers to pay a one-time lump sum amount and to receive the same in EMIs.
  • All residents, including minors, can avail of the scheme.
  • Depositors can invest in the scheme for a period of three years, five years, seven years and ten years.
  • The minimum deposit amount for the State Bank of India Annuity deposit is based on minimum monthly annuity ₹ 1,000 for the relevant period. i.e. for three years, the minimum deposit amount will be ₹ 36,000.
  • There is no maximum deposit amount limit in SBI MIS.
  • Currently, the rate offered on SBI monthly income Fixed deposits scheme is 2.90% to 5.40%.
  • SBI MIS interest rate for the senior citizens is 50 basis points (bps) above the rates applicable for general investors.
  • The rate applicable to SBI Staff and SBI pensioners will be 1% above the applicable rate.
  • Nomination and overdraft facility is available under the SBI MIS scheme.

Eligibility Required for Monthly Income Scheme

Below mentioned are eligible for the monthly income FD scheme:

  • Individual
  • Joint account Minor with a parents or guardian
  • Partnership
  • Company
  • Any association or Institute
  • Non Resident individuals

Document Required for Monthly Income Scheme

Documents required for opening a monthly income FD scheme are as follows:

  • Application Form
  • PAN card
  • Aadhar card
  • Photograph (2 copies)
  • Identity proof & Address proof as per KYC norms

FAQs

Which bank is best for the monthly interest FD Scheme?

Banks or NBFCs with high returns are considered the best option for monthly income schemes. SBI, HDFC Bank, PNB Housing Finance and Bajaj Finserv are some of the top banks or NBFCs for the monthly interest FD schemes.

Can I get monthly interest on FD?

Yes, individuals can get a monthly interest payout if they choose periodic payouts, and select the monthly frequency. Monthly Fixed Deposits offers a facility to earn interest on your principal amount, which can be obtained periodically.

Which scheme is best for monthly income?

There are several schemes and financial instruments that offer monthly income to everyone. However, if you are looking for a high return and risk-free option, then the best option for monthly income is a fixed deposit where you can earn monthly returns by investing in monthly compounding interest.

How much will I get monthly from FD?

The amount earned will be dependent upon the interest rate on the Monthly Fixed Deposit. For instance, A invested ₹ 1,00,000 in annual income FD which fetches an interest rate of 6%. So, his annual income earned will be ₹ 6,000 which makes the monthly income to be ₹ 500.  Whereas, If he invests in monthly income FD which offers an interest rate of 7%, the annual interest earned will be ₹ 7,000 and monthly income will be ₹ 583.

How Can I Invest In Fixed Deposit Monthly Income Scheme ?

Individuals must compare all the FD monthly income schemes and then select the best scheme according to their requirement. They can then invest in the FD Monthly Income scheme by any of the below-mentioned ways:

  • By visiting the nearest Bank branch
  • Via internet banking
  • Via Mobile application

What is the interest rate of the SBI Monthly Income Scheme Fixed Deposit?

The interest rate on the SBI Monthly Income Scheme Fixed Deposit is in the range of 2.90% to 5.10%. The interest in this scheme is credited monthly in the depositor’s account. Thus, it an excellent option for individuals looking for regular and secured source of income.


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