SBI 5-year FD vs Post Office MIS: Which can give higher monthly income on Rs 5 lakh, Rs 10 lakh, and Rs 15 lakh investments? Know here
SBI 5-year FD vs MIS: State Bank of India (SBI) and Post Office Monthly Income Scheme (MIS) provide interest on one-time deposits. While MIS provides interest on a monthly basis, SBI offers monthly payout withdrawal on FDs of 12 months and over.
SBI 5-year FD vs MIS: Investors seeking guaranteed return and regular income on their one-time investment want minimum risk with their deposit. So, instead of going for market-linked investment options, they prefer going for investment instruments, where they can withdraw an amount every month. Such income helps them bear monthly expenses and meet their financial goals. State Bank of India (SBI) 5-year fixed deposit scheme (FD) and Post Office Monthly Income Scheme (MIS) are two such schemes where investors can invest a lump sum amount and get a return in the form of interest every month.
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(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)
What is SBI 5-year FD?
State Bank of India (SBI) offers a 5-year FD to long-term investors. Investment in such a scheme also offers tax benefits of up to Rs 1.50 lakh in a financial year under Section 80C of the Income Tax Act, 1961, to the investors who withdraw money on maturity. The general rule for withdrawal from any FD is that you get return along with the principal back on maturity.
Does SBI offer monthly FD withdrawal facility?
On its official website, State Bank of India says that interest on a term deposit (FD) is payable to the depositor quarterly from the date of issue or at maturity along with the principal. But on request from the depositor, interest may be paid at monthly, half-yearly, or yearly intervals in case of term deposits fixed for a term of 12 months and above.
SBI 5-year FD: Interest rate for general citizens
As per the SBI website, the interest rate for general citizens in the 5-year FD is 6.50 per cent.
SBI 5-year FD: Interest rate for senior citizens
Senior citizens get 7.50 per cent interest rate in the same FD.
What is Post Office MIS?
Post Office MIS provides monthly withdrawal on one-time investment. A person can open an individual or a joint account with a minimum deposit of Rs 1,000. It provides 7.4 per cent interest to its account holders. The interest rate remains the same for everyone, including senior citizens.
Maximum limit to deposits
An MIS account holder can deposit Rs 9 lakh in an individual account. In a joint account, the maximum limit is Rs 15 lakh. The account holder receives the interest till the maturity period of 5 years. On maturity, one can close their account and get the principal amount back.
SBI 5-year FD: Monthly withdrawal for general and senior citizens on Rs 5 lakh investment
As per the online calculator, the estimated monthly interest for general citizens will be Rs 2,708.33. The total estimated interest in 5 years will be Rs 1,62,500.
For senior citizens, estimated monthly payout will be Rs 3,125, and the estimated interest in 5 years will be Rs 1,87,500.
SBI 5-year FD: Monthly withdrawal for general and senior citizens on Rs 10 lakh investment
On Rs 10 lakh investment, the estimated interest for general citizens in 5 years will be Rs 3,25,000, and the estimated monthly payout will be Rs 5,416.66.
If a senior citizen invests Rs 10 lakh, their estimated monthly payout will be Rs 6,250, and the total interest in 5 years will be Rs 3,75,000.
SBI 5-year FD: Monthly withdrawal for general and senior citizens on Rs 15 lakh investment
General citizens will get an estimated monthly payout of Rs 8,125, and the estimated interest in 5 years will be Rs 4,87,500.
On investing Rs 15 lakh, the estimated monthly payout will be Rs 9,375, while the estimated interest in 5 years will be Rs 5,62,500.
Post Office MIS: Monthly withdrawal on Rs 5 lakh investment
On a Rs 5 lakh investment, the monthly payout in Post Office MIS will be Rs 3,083.
Post Office MIS: Monthly withdrawal on Rs 10 lakh investment
A Rs 10 lakh deposit is possible only in a joint account. The estimated monthly payout will be Rs 6,167.
Post Office MIS: Monthly withdrawal on Rs 15 lakh investment
A Rs 15 lakh investment in a joint account will help one get an estimated amount of Rs 9,250.