SBI fixed deposit vs Monthly Income Scheme: Which will give higher return on Rs 9 lakh investment for 5 years; understand with examples
Compare SBI 5-Year FD and Post Office Monthly Income Scheme (POMIS) for a Rs 9 lakh investment. Understand the returns, interest rates, and safety aspects of these two popular, fixed-income investment options.
Are you seeking for better investment returns? Discover how SBI's 5-Year Fixed Deposit (FD) compares with the Post Office Monthly Income Scheme (POMIS). Both offer fixed returns, but which one delivers better yields? POMIS provides monthly income with a 7.4% interest rate, while SBI FD offers 6.5% returns with flexible interest payment options. Dive into this detailed comparison to understand which investment option is right for you, ensuring secure and reliable returns.
Post Office Monthly Income Scheme (POMIS) for general citizens
Government-Backed Safety
POMIS offers sovereign guarantee, making it a safer option compared to other fixed-income investments.
High Fixed Returns
Provides a fixed interest rate of 7.4% over a period of 5 years.
Monthly Income Disbursement
Interest is disbursed monthly, giving a regular income stream of Rs 5,550 per month.
Investment and Lock-in Period
Investment Amount: Rs 9,00,000
Lock-in Period: 5 years
No Risk of Capital Loss
The invested capital remains secure, with no market-linked risks.
SBI 5-Year Fixed Deposit (FD) for general citizens
Flexible Deposit Periods
SBI FD offers a flexible deposit period ranging from 7 days to 10 years, making it suitable for various time horizons.
SBI FD offers a flexible deposit period ranging from 7 days to 10 years, making it suitable for various time horizons.
Interest Rate and Payment Options
Interest rate is 6.5%, with multiple payout options: monthly, quarterly, half-yearly, or yearly.
Investment and Returns
Investment Amount: Rs 9,00,000
Returns over 5 years: Rs 3,42,378
Total Value after 5 years: Rs 12,42,378
TDS and Tax Benefits
TDS is applicable as per tax rules. Depositors can submit Form 15G/15H for exemption from tax deduction.
Transferability and Nomination
FD can be transferred among SBI branches, and nomination is allowed for individuals.