State Bank of India Monthly Income Schemes (SBI MIS) offer a reliable and consistent source of income for individuals in India. These schemes cater to various financial needs, providing stability and financial security. SBI monthly income schemes are ideal for senior citizens, pensioners, and anyone who wants to supplement their income without taking much risk. The MIS interest rate in SBI ranges from 3.5% to 7.25% p.a.
Here’s a list of various monthly income schemes offered by SBI.
1. SBI Fixed Deposit Monthly Income Schemes
SBI Annuity Deposit Scheme
The SBI Annuity Deposit Scheme allows investors to utilise their savings to receive a regular income. Under this scheme, investors can make a lump sum deposit and receive Equated Monthly Instalments (EMI), including the principal and interest amount. The interest is compounded quarterly and then discounted to calculate the monthly EMI value. SBI’s rules and norms determine the SBI MIS interest rate.
Key Features:
- Tenure of Deposit: 36, 60, 84, or 120 months.
- Minimum and Maximum Deposit: Minimum monthly deposit for the relevant period is INR 1,000. For example, for a tenure of 5 years, the minimum deposit in the SBI Annuity Deposit Scheme would be INR 60,000. However, there is no maximum limit on the investment amount.
- Annuity Payments: The annuity payments commence one month after the date of deposit.
- Overdraft or Loan: Investors can avail a loan up to 75% of the balance amount of the annuity.
- Premature Withdrawal: Premature withdrawal is available only in the event of the investor’s death, and it can be processed only at the branch where the account was initially opened.
2. SBI Mutual Funds Monthly Income Funds
SBI Magnum Income Fund
The investment objective of this SBI MIS Scheme is to offer investors the potential to generate consistent income by investing in debt and money market instruments, with a targeted Macaulay duration ranging from 4 years to 7 years.
This scheme follows a dynamic investment strategy that involves continuous assessment of macroeconomic factors, market conditions, and issuer-specific factors related to debt instruments. The fund will allocate its assets across a wide spectrum of debt and money market securities, aligning with its objective of delivering attractive risk-adjusted returns to investors. The scheme’s portfolio will be actively managed to mitigate credit risk and interest rate risk.
SBI Magnum Income Fund suits investors seeking regular income for the medium term.
SBI Corporate Bond Fund
The objective of this scheme is to provide investors with the opportunity to predominantly invest in high-quality corporate bonds rated AA+ and above. By doing so, the aim is to generate additional returns from the yield spread offered by these securities while maintaining a moderate level of liquidity in the portfolio through investments in money market securities.
The scheme primarily focuses on investing in corporate debt securities that have been assigned a rating of AA+ and above. The scheme’s performance will depend on the Asset Management Company’s ability to accurately assess the financial strength of the issuers of these securities in terms of their ability to repay their debt.
The investments may be made in both the primary and secondary markets. To minimise credit risk, the portfolio will be adequately diversified across various issuers. As an open-ended scheme, a portion of the portfolio will be allocated to money market instruments to ensure sufficient liquidity to meet the scheme’s requirements.
SBI Corporate Bond Fund suits investors seeking regular income for the medium term by investing predominantly in corporate debt securities rated AA+ and above.
SBI Conservative Hybrid Fund
The primary objective of this scheme is to offer investors the opportunity to invest primarily in Debt and Money market instruments, with a secondary focus on equity and equity-related instruments.
The fund will allocate investments across a combination of debt, equity, and money market instruments. The allocation to debt instruments will be determined through a careful evaluation of macroeconomic factors, market conditions, and issuer-specific factors. The scheme aims to maintain a maximum exposure of 25% to equities.
SBI Conservative Hybrid Fund suits investors seeking regular income and capital growth.
SBI Equity Savings Fund
The objective of the SBI Equity Savings Fund is to generate income by capitalizing on arbitrage opportunities in the cash and derivatives segments of the equity market. Additionally, it aims for capital appreciation by maintaining a moderate exposure in equity.
The fund ensures a minimum investment of 65% in equity and equity-related instruments. Within this allocation, the cash-future arbitrage component ranges from 15% to 70%, while the net long equity exposure ranges from 20% to 50%.
Furthermore, the SBI Equity Savings Fund allocates assets to debt and money market instruments within the range of 10% to 35%.
When sufficient arbitrage opportunities are unavailable in the market, the fund will invest 30% to 70% in equity and equity-related instruments. Within this allocation, the cash-future arbitrage component ranges from 0% to 45%, while the net long equity exposure ranges from 20% to 50%. The allocation to debt and money market instruments in such cases will be within the range of 30% to 70%.
SBI Equity Savings Fund suits investors seeking regular income and capital appreciation.
3. SBI Life Insurance – Money Back / Income Plans
SBI Life – Smart Money Planner
A savings plan with the dual advantage of protection and guaranteed cash inflow at regular intervals to suit your financial goals.
Key Features:
- Regular Income (sum assured in equal instalments) during the benefit payment period.
- Flexibility to choose between Single or Limited premium payment.
- Life Cover is available throughout the entire Policy Term.
SBI Life – Smart Income Protect
A regular income plan helps accomplish both the major and minor milestones while safeguarding the family’s financial stability.
Key Features:
- Dual features of Insurance Cover and Regular Income.
- Guaranteed annual payouts.
- Enhance your coverage through three rider options at a nominal cost.
- Life cover throughout the policy term.
- Vested reversionary bonuses plus terminal bonus, if any, are paid as a lump sum at maturity.
4. SBI Life – Wealth Creation Plans
SBI Smart InsureWealth Plus
A ULIP plan that builds wealth while protecting your loved ones.
Key Features:
- Systematic Investment Insurance Plan with market-linked returns and life cover.
- Choice of 3 Investment Strategies to suit your needs – Trigger Strategy, Auto Asset Allocation Strategy, and Smart Choice Strategy.
- Regular monthly payout to meet expenses through systematic monthly withdrawals.
- Return of Mortality charges (ROMC) on the maturity of inforce policy.
SBI Saral InsureWealth Plus
A market-linked plan that builds wealth to fulfil your dreams while protecting your family’s tomorrow.
Key Features:
- Easy Monthly Insurance for life coverage.
- Choice of 8 diverse funds to suit your risk tolerance levels.
- Systematic Monthly Withdrawals to facilitate regular payouts.
5. SBI Life – Savings Plans
SBI Smart Platina Assure
A guaranteed return savings plan that provides life cover for your family and helps to achieve desired goals in life.
Key Features:
- Assurance of Guaranteed Maturity Benefit in lumpsum.
- Reliability of Guaranteed Additions to boost corpus.
- Life Cover along with assured return and tax benefit.
- Option to choose Monthly or Yearly premium payment frequency, as per convenience.
SBI Shubh Nivesh
Provides protection, savings and a regular income to build a secured financial corpus for life.
Key Features:
- Triple Benefits of Insurance Cover, Savings and Regular Income
- Insurance covers up to 100 years of age in Endowment with Whole Life Option
- Enhance your coverage through three rider options at a nominal cost
SBI Smart Platina Plus
Provides a regular, guaranteed long-term income so that you can go ahead and live a little more.
Key Features:
- Choice of two-income plan options to suit your financial needs – Guaranteed Income & Life Income
- Guaranteed Income Benefit: Enjoy fixed, regular income during the payout period opted.
- Maturity Benefit: Get a return of 110% of total premiums paid at the end of policy term.
- Choice of frequency of income benefit – Yearly, Half-yearly, Quarterly or Monthly
- Financial protection along with tax benefits
6. SBI Life – Retirement Plans
SBI Smart Annuity Plus
An annuity plan that offers both immediate and deferred annuity options as well as joint life options that financially secures your loved ones while ensuring a relaxed retired life.
Key Features:
- Guaranteed Lifetime Regular Income available from age 30.
- Option to choose the frequency of annuity payouts – Monthly, Quarterly, Half-Yearly or Yearly.
- The benefit of higher annuity payouts for a large premium.
- Option to avail the benefit of the annuity at a Compound Increasing Rate.