SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
Compare SBI Fixed Deposit (FD) and Monthly Income Scheme (MIS) for senior citizens. Find out which investment option offers better returns on Rs 2 lakh over five years.
Senior citizens often seek safe investment options with reliable returns. SBI Fixed Deposit (FD) and Monthly Income Scheme (MIS) are popular choices offering attractive interest rates. With an investment of Rs 2 lakh, SBI FDs provide higher maturity value, while MIP ensures regular monthly income. This comparison evaluates interest rates, returns, and overall benefits to help senior citizens make an informed financial decision. Whether you prefer lump sum returns or steady income, learn which plan suits your needs over a 5-year period.
(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning)
Overview of SBI Fixed Deposit (FD) Interest Rates
- General citizens: 3.50%-7.25% p.a.
- Senior citizens: 4.00%-7.75% p.a.
- SBI Tax Saving FD: 6.50% for general citizens, 7.50% for senior citizens.
SBI 5-Year FD for General Citizens
- Interest rate: 6.50% p.a.
- Investment: Rs 2,00,000
- Estimated returns: Rs 76,084
- Total value after 5 years: Rs 2,76,084
SBI 5-Year FD for Senior Citizens
- Interest rate: 7.50% p.a.
- Investment: Rs 2,00,000
- Estimated returns: Rs 89,990
- Total value after 5 years: Rs 2,89,990
What is a Monthly Income Scheme (MIS)?
- Investment option offering monthly income and potential capital appreciation.
- Portfolio includes fixed-income instruments and equities for diversification.
MIS Account Opening Details
- Can be opened by individuals, minors (10+ years), or as joint accounts.
- Open via cash/cheque; transfer between post offices is allowed.
Lock-In Period and Premature Withdrawal for MIS
- Lock-in period: 5 years.
- Premature encashment allowed with deductions: 2% before 3 years, 1% after 3 years.
Monthly Income Scheme Features for Senior Citizens
- Investment: Rs 2,00,000
- Interest rate: 7.4% p.a.
- Monthly income: Rs 1,233
Maturity Value of MIS
- Total interest earned: Rs 74,000
- Maturity value after 5 years: Rs 2,74,000
Comparison: SBI FD vs MIS for Senior Citizens
- SBI FD: Total returns Rs 89,990; maturity value Rs 2,89,990.
- MIS: Total returns Rs 74,000; maturity value Rs 2,74,000.
Choosing the Right Investment for Senior Citizens
- SBI FD: Higher returns and maturity value.
- MIS: Regular monthly income suitable for those needing consistent cash flow.