SBI FD vs Post Office MIS vs Atal Pension: What will be your contribution to get Rs 5,000 monthly income
Compare SBI FD, Post Office MIS, and Atal Pension Yojana to find the best investment option. Learn about their interest rates, features, and benefits to maximize returns based on your financial goals.
ZeeBiz WebTeam | Oct 14, 2024, 02:19 PM IST
Choosing the right investment plan can make a significant difference in your financial growth. In this comparison of SBI Fixed Deposit (FD), Post Office Monthly Income Scheme (MIS), and Atal Pension Yojana (APY), we break down the interest rates, features, and benefits to help you decide which option yields the highest returns. Whether you're looking for short-term deposits, monthly income, or long-term pension security, this guide will help you make an informed choice to align with your financial objectives.
1/9
SBI Fixed Deposit (FD)
Key Features:
- Deposit Period: 7 days to 10 years
- Minimum Deposit: Rs. 1,000
- Maximum Deposit: No upper limit (Bulk deposit starts from Rs. 2 crore)
- Interest Payment: Monthly, quarterly, half-yearly, or yearly (for deposits of 12 months and above)
- Nomination: Available for individuals only
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Additional features
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Transferability: Allowed between SBI branches
- Tax Deducted at Source (TDS): Applicable as per IT rules. Submit Form 15G/15H for tax exemption.
Transferability: Allowed between SBI branches
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Example Calculation
- Deposit Amount: Rs. 8,57,143
- Tenure: 60 months
- Interest Rate: 7%
- Maturity Amount: Rs. 11,57,143
- Total Interest Earned: Rs. 3,00,000
4/9
Post Office Monthly Income Scheme (MIS)
Key Features:
- Interest Rate: 7.4% per annum, payable monthly
- Minimum Deposit: Rs. 1,000
- Maximum Deposit: Rs. 9 lakh (single account), Rs. 15 lakh (joint account)
- Account Holders: Single adult, joint (up to 3 adults), minors above 10 years, or a guardian for a minor/person with unsound mind
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Additional Features
- Interest Payout: Monthly, via savings account auto-credit or ECS
- Premature Withdrawal: After 1 year (with a penalty of 1-2% on the principal)
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Example Calculation
Example Calculation
- Invested Amount: Rs. 8,20,000
- Interest Rate: 7.4%
- Lock-in Period: 5 years
- Interest Payout: Monthly
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Atal Pension Yojana (APY)
Eligibility:
- Age: 18 to 40 years
- Bank/Post Office Account: Mandatory for enrollment
- Aadhaar & Mobile Number: Recommended for updates (not mandatory)
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Benefits
- Guaranteed Pension: Rs. 1,000 to Rs. 5,000 per month after age 60
- Government Contribution: 50% or Rs. 1,000 annually (for 5 years if joined between 2015-2016)
- Tax Benefits: Similar to National Pension System (NPS)
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Need for Pension
- Retirement Security: Assures a dignified life in old age with monthly income
- Factors: Increased longevity, higher living costs, and migration of earning family members