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SBI Monthly Income Scheme Calculator — Regular Income

Calculate your monthly interest cash flow with the SBI Monthly Income Scheme Calculator. Compare SBI's monthly interest payout fixed deposit (TDR) with Post Office MIS (POMIS), check discounted interest calculations, and optimize post-retirement regular income.

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Monthly Income

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Annual Income

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Total Interest

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Current SBI Rates

Period / Type Interest Rate
1 Year to < 2 Years 6.80% p.a. (General) | 7.30% p.a. (Senior)
2 Years to < 3 Years 7.00% p.a. (General) | 7.50% p.a. (Senior)
3 Years to < 5 Years 6.75% p.a. (General) | 7.25% p.a. (Senior)
5 Years to 10 Years 6.50% p.a. (General) | 7.50% p.a. (WeCare Senior)
Post Office MIS (Govt Benchmark) 7.40% p.a. (Monthly Simple Interest, 5-Yr Fixed)

How to Use This Calculator

  1. 1Enter the required values in the input fields above
  2. 2Adjust the sliders or type exact values for precision
  3. 3Click "Calculate" to see instant results with breakdown
  4. 4View the chart and table for detailed analysis
In-Depth Authority Guide

Comprehensive Guide & Financial Analysis

Verified Against SBI Schedules

Complete Guide to SBI Monthly Income Scheme (Monthly Payout Fixed Deposits)

Managing consistent, predictable monthly cash flow is a paramount objective for retirees, senior citizens, non-salaried individuals, and families relying on interest income to fund regular household expenditures. While the term Monthly Income Scheme (MIS) is most famously associated with the sovereign Post Office Monthly Income Scheme (POMIS), the State Bank of India (SBI) provides an equally robust, highly flexible commercial equivalent known formally as the SBI Non-Cumulative Term Deposit (TDR) with Monthly Interest Payout or through the SBI Multi Option Deposit Scheme (MODS).

Unlike cumulative fixed deposits (where interest is reinvested quarterly until maturity), an SBI Monthly Interest Payout Deposit credits interest directly into your linked savings bank account on the first day of every calendar month. This ensures continuous liquidity while preserving 100% of your initial invested principal, which is repaid in full upon maturity or automatically renewed based on your standing instructions.

Understanding the Discounted Monthly Interest Calculation

One of the most frequent points of confusion among bank depositors is why the monthly interest payout from SBI appears marginally lower than a simple annual rate divided by 12.

Under Indian banking regulations established by the Reserve Bank of India, standard bank fixed deposit interest rates are priced on the assumption of quarterly compounding. When a customer requests that interest be disbursed monthly rather than every three months, the bank loses the opportunity to retain that interest for the remainder of the quarter. Consequently, SBI calculates the monthly payout at a discounted rate so that the annual compounded yield remains actuarially identical to the quarterly compounding standard.

The mathematical conversion formula used by SBI core banking systems to calculate the monthly discounted interest rate is:

r_monthly = (1 + r_quarterly / 400)^(1/3) - 1

For example, if the nominal card rate for a 1-year deposit is 6.80% p.a., dividing by 12 would yield 0.5667% per month. However, after applying the quarterly compounding discount, the actual monthly rate disbursed is approximately 0.5635%. While the fractional difference on small sums is modest, it ensures mathematical fairness across different payout frequencies.

Practical Worked Example: Investing ₹5 Lakhs and ₹10 Lakhs

To evaluate the exact monthly cash flow you will receive from State Bank of India under current interest rate slabs, review the table below:

| Investment Parameter | ₹5,00,000 Deposit (3-Yr Term) | ₹10,00,000 Deposit (3-Yr Term) | | Principal Amount | ₹5,00,000 | ₹10,00,000 | | Chosen Tenure | 3 Years (36 Months) | 3 Years (36 Months) | | Card Rate (General Depositor) | 6.75% p.a. | 6.75% p.a. | | Card Rate (Senior Citizen) | 7.25% p.a. | 7.25% p.a. | | General Monthly Payout (Discounted) | ₹2,790 / month | ₹5,580 / month | | Senior Citizen Monthly Payout | ₹2,995 / month | ₹5,990 / month | | Total Interest Received over 3 Years (General) | ₹1,00,440 | ₹2,00,880 | | Total Interest Received over 3 Years (Senior) | ₹1,07,820 | ₹2,15,640 | | Principal Refunded at Maturity | ₹5,00,000 (100% Intact) | ₹10,00,000 (100% Intact) |

Comprehensive Comparison: SBI Monthly Payout FD vs. Post Office MIS (POMIS) vs. SBI Annuity

Understanding how SBI's monthly deposit compares against alternative fixed-income vehicles enables savers to pick the right structure for their portfolio:

| Scheme Feature | SBI Monthly Payout FD (TDR) | Post Office MIS (POMIS) | SBI Annuity Deposit Scheme | | Backing Authority | State Bank of India (PSU Bank) | Ministry of Finance (Sovereign) | State Bank of India (PSU Bank) | | Maximum Deposit Limit | Unlimited (No Maximum Ceiling) | ₹9 Lakh (Single) / ₹15 Lakh (Joint) | Unlimited (No Maximum Ceiling) | | Payout Frequency | Monthly (Discounted) | Monthly (Simple Interest) | Monthly (Principal + Interest) | | Principal at Maturity | 100% Returned at End | 100% Returned at End | Reaches Zero (Exhausted) | | Tenure Flexibility | 7 Days to 10 Years | Strictly 5 Years | 3, 5, 7, or 10 Years | | Liquidity & Premature Exit | Available anytime (0.5%–1% penalty) | Restricted (No exit in Year 1) | Prohibited during lifetime | | Loan / Overdraft Availability | Instant Overdraft up to 90% | Not Permitted | Up to 75% in emergencies | | Digital Management via App | Full control on YONO SBI app | Limited digital integration | Full control on YONO SBI app |

Taxation Guidelines and TDS Management

  • •Income Tax Liability: Interest received each month from an SBI Term Deposit is classified as Income from Other Sources and is taxed according to the depositor's progressive income tax slab rates (5%, 10%, 15%, 20%, or 30% under the applicable tax regime).
  • •TDS Deduction under Section 194A: State Bank of India deducts 10% TDS if the aggregate interest earned across all your deposits at the bank exceeds ₹40,000 in a financial year (for individuals below 60 years) or ₹50,000 per financial year (for senior citizens).
  • •Exemption via Form 15G / 15H: If your total taxable annual income is below the taxable threshold, you can prevent TDS deductions by submitting Form 15G (below 60) or Form 15H (senior citizens) at the beginning of each financial year (April) through the YONO app, internet banking, or in person at any SBI branch.
  • •Section 80TTB Benefit for Retirees: Senior citizen depositors aged 60 and above can claim an exemption of up to ₹50,000 annually under Section 80TTB of the Income Tax Act on interest income derived from bank fixed deposits and savings accounts.

    • Instant Liquidity: Overdraft Against Monthly Income Deposit

    A major advantage of choosing SBI over Post Office schemes is liquidity. If you require funds urgently, you do not need to break your monthly income fixed deposit. SBI offers an instant digital overdraft of up to 90% to 95% of the deposit value via the YONO mobile application. You pay interest (typically 1.00% above your deposit rate) only on the specific amount drawn and for the duration utilized, while your underlying fixed deposit continues generating uninterrupted monthly interest payouts.

    Frequently Asked Questions

    What is the difference between SBI Monthly Income Scheme and Post Office MIS?
    Post Office MIS is a government small savings scheme with a fixed 5-year tenure and a statutory deposit cap of ₹9 Lakh for single accounts and ₹15 Lakh for joint accounts. SBI's Monthly Income Deposit (TDR) has absolutely no upper deposit ceiling, provides flexible tenures from 7 days to 10 years, and offers instant overdraft facilities up to 90% via the YONO app.
    Why is the monthly interest payout slightly less than dividing the annual rate by 12?
    SBI fixed deposit rates are priced based on quarterly compounding. When interest is disbursed monthly, the bank pays a discounted rate to ensure that the annual yield remains mathematically identical to the quarterly compounding rate.
    Can I open an SBI Monthly Interest Payout Fixed Deposit online through YONO?
    Yes. You can open an e-TDR (Special Term Deposit with monthly interest payout) instantly through the YONO SBI mobile app or OnlineSBI internet banking portal without visiting a branch, choosing your tenure and linking your savings account for automatic monthly credits.
    What is the minimum deposit amount required to opt for monthly interest payouts at SBI?
    The minimum deposit amount required to open an SBI Term Deposit with monthly interest payout is ₹1,000. There is no upper limit on the maximum amount you can deposit.
    Can senior citizens get extra interest on monthly payout fixed deposits?
    Yes. Resident Indian senior citizens aged 60 and above receive an additional 0.50% interest rate across all tenures, and an extra 1.00% over the general rate for tenures of 5 years up to 10 years under the SBI WeCare deposit initiative.
    Is TDS deducted every month when the interest is credited to my savings account?
    TDS is calculated on an accrual basis across the financial year. If your projected annual interest across all SBI deposits exceeds ₹40,000 (or ₹50,000 for senior citizens), SBI will deduct TDS proportionately at the end of each quarter or at financial year-end.
    Can I take a loan or overdraft against my monthly payout fixed deposit?
    Yes. You can avail of an overdraft or demand loan facility of up to 90% of the deposit principal through YONO SBI or at your home branch at an interest rate of just 1.00% over the deposit rate.
    What is the penalty if I need to close my monthly payout deposit prematurely?
    For deposits up to ₹5 Lakh, the premature withdrawal penalty is 0.50% below the contractual rate for the period the deposit remained with the bank. For deposits above ₹5 Lakh up to ₹3 Crore, the penalty is 1.00%.
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    Disclaimer: This calculator provides estimates based on the inputs provided. Actual rates and results may vary. Always verify with SBI's official website or visit your nearest branch before making financial decisions. This website is not affiliated with State Bank of India.

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