SBI MIS Scheme 2026: Interest Rates, Benefits & How It Works
Worried about unpredictable returns or stock market risks? The SBI MIS Scheme offers a simple solution—invest once and earn every month. With flexible tenure options and SBI’s trusted backing, it is ideal for investors seeking low-risk, consistent income. The SBI Monthly Income Scheme, or SBI MIS scheme, is a simple fixed deposit plan from the State Bank of India that turns your one-time investment into regular monthly payouts.
In this blog, we will explore
- What is the SBI Scheme?
- Key Features
- SBI Scheme Interest Rates
- Types of SBI MIS Schemes
- Steps to apply for the SBI Monthly Income Scheme offline
What is the SBI MIS Scheme?
The SBI MIS Scheme is one of the best savings options for generating a safe and steady monthly income by paying minimal interest every month. It is ideal for retirees and individuals looking for features in investment plans like regular, low-risk returns with flexible tenures and easy investment through SBI branches or online channels.
SBI MIS Interest Rate Breakdown
Now, the part everyone cares about: returns. The SBI MIS interest rate floats between 6.5% and 7.5% per year, generally, but seniors get an extra 0.5% bump, up to 7.65%.
| Deposit Tenure | Interest Rate (General) | Interest Rate (Senior Citizens) |
| 7 to 45 days | 3.50% | 4.00% |
| 46 to 179 days | 5.50% | 6.00% |
| 180 to 210 days | 6.25% | 6.75% |
| 211 days to less than 1 year | 6.50% | 7.00% |
| 1 to 2 years | 6.80% | 7.30% |
| 2 to 3 years | 7.00% | 7.50% |
| 3 to 5 years | 6.75% | 7.25% |
| 5 to 10 years | 6.50% | 7.50% |
Key Features of SBI Monthly Income Scheme
- Minimal Investment Scheme - You can begin investing with a minimum deposit of ₹1,000, making it affordable for most investors.
- Premature Withdrawal Option - In times of financial emergency, if you need money before maturity, early withdrawal is allowed.
- 0.50% for deposits up to ₹5 lakh - 1% for deposits from ₹5 lakh to ₹2 crore and above
- Competitive Interest Rates - Enjoy steady growth with interest rates ranging from 3.3% to 7.5%.
- Loan Against Deposit - You can avail a loan against your deposit with convenient EMI options, subject to a 10–15% margin, depending on the tenure.
- Nomination Facility - You can add a nominee to ensure smooth financial planning for your family.
- Passbook Facility - A passbook is provided to help you monitor your investment with regular updates.
Types of SBI MIS Schemes
SBI Monthly Income Fixed Deposit (Monthly Interest FD)
Key feature
- Interest is added monthly to your savings account.
- Principal is returned at maturity.
- Fixed and predictable income
- Suitable for retirees and conservative investors
Tenure - 7 days to 10 years
Interest rate
- Same as regular FD rates (monthly payout is slightly adjusted)
- The minimum deposit amount is 1000.
- Deposits of 2 crore and above are treated as bulk deposits.
2. SBI Annuity Deposit Scheme
Designed for individuals seeking a regular monthly income and a gradual return of principal.
Key features
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- The monthly payout includes interest and a portion of the principal.
- Income continues till the end of the chosen tenure.
- Ideal for retirement planning
Tenure - 3, 5, 7, or 10 years
3. SBI Mutual Fund – Monthly Income Plans (MIP)
Key features
- Market-linked (debt-oriented with some equity exposure)
- Monthly income is not fixed.
- Better tax efficiency than FD for some investors
- Higher risk than FD, but potential for better returns
4. SBI RD / FD with Auto Monthly Interest Transfer
- Interest from the FD is automatically credited monthly.
- Useful for salary-style income planning.
Simple steps to apply the SBI MIS Scheme online
- Log in to SBI Internet Banking at SBI.
- Click on ‘Fixed Deposit’ or ‘Annuity Deposit’ options to open an MIS account.
- Fill in the deposit details and tenure, then confirm and submit.
- You can use the YONO SBI App (available on Android or iOS) as an alternative.
Steps to apply for the SBI Monthly Income Scheme offline
Step 1: Visit your nearest SBI branch.
Step 2: Submit the required documents:
- PAN card
- ID proof
- Address proof
- A passport-size photo
Step 3: Fill in the MIS application form provided at the branch.
Step 4: Choose your deposit amount and tenure (36, 60, 84, or 120 months).Step 5: Submit the form with the documents to the bank officer.
Step 6: You can make your first deposit via cash, cheque, or bank transfer.
Step 7: Collect your passbook or receipt after a successful submission.
Step 8: Set a nominee (optional) for added safety.
Key Takeaway
With the SBI MIS Scheme 2026, rest assured with a stable stream of monthly income, as well as keeping your deposits somewhat safe. Since the scheme offers flexible terms, an easy application process, fixed payments, and the guarantee provided by SBI, the plan is still attractive to senior citizens and conservative investors. In case of choosing the plan, there is an option to choose either a fixed monthly income deposit scheme, an annuity deposit scheme, or a monthly pay scheme offered by SBI.
Learn more about the possibility of becoming a PoSP Insurance agent or a health insurance agent.
Disclaimer* :- The information provided here is for general awareness only. It does not constitute professional advice. While care has been taken to ensure accuracy, readers are advised to consult a qualified professional before making any decisions.
FAQs
Is the SBI MIS scheme better than a regular fixed deposit for monthly income?
If an individual is interested in gaining income every month, he or she must choose an SBI MIS plan. Fixed deposits usually offer benefits upon maturity. It depends on the needs of the person.
Who should invest in the SBI Monthly Income Scheme—retirees or working professionals?
Either retired people or those working can purchase SBI MIS shares. Risk-averse investors require fixed income.
How is the monthly income calculated in the SBI MIS scheme?
The invested sum, interest rate, and mode of payment determine the monthly income. Your account receives the monthly interest payments.
Can I withdraw my SBI MIS investment before maturity, and what are the charges?
Yes, it does. One may face charges if one withdraws early. It depends on the policy of SBI and the term of the deposit.
Is there any tax on the monthly income received from the SBI MIS scheme?
The interest gained from SBI MIS depends on the tax status of the individual. The interest may be taxable based on the threshold limit.
Can I take a loan against my SBI MIS (Fixed Deposit) investment?
One can get a loan and overdraft against his/her deposit in the SBI MIS scheme, but this depends on certain conditions.
What is the minimum and maximum investment limit in the SBI MIS scheme?
Monthly interest gain is common in both plans, but the latter is provided by the government while the former is managed by banks.
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