Many monthly income plans are provided by different financial institutions like the State Bank of India. These Monthly saving plans help the scheme holders to have a secure backup option in case of a Financial emergency.
SBI is a financial service provider which has provided its customers and members with different customer-friendly schemes. State Bank of India is an India-based Multinational Public sector unit. This financial institution mainly deals in the Banking sector. From providing a secure Banking facility to life insurance, SBI has created a chain of services for its customers and scheme holders so it can function according to their needs.
A Best Monthly income scheme in SBI is an initiative started by SBI for its customers to provide them a monthly income on the principal amount submitted by them to the SBI. SBI is a trusted organization providing its facilities to Indian citizens for more than 200 years now. It is one of the major banks in India and also among the global banking sector.
State Bank of India has over 45 core customers and scheme holders. It has many subsidiaries which help SBI to expand its business in other domains like Insurance (SBI General Insurance, SBI Mutual Funds, SBI Life Insurance, etc.)
In this article, we will tell you everything about the Best Monthly income scheme in SBI and how you can invest in it to gain the benefit from it.
About State Bank of India
The state bank of India was the first bank established in India. It is a Public sector unit that mainly serves in the Banking and financial sector. The State bank of India has Mumbai as its Headquarter and have more than 24,000 branches, 59,000 ATM, 195 offices across 36 foreign countries.
To its customer, State Bank of India offers many services, like saving account, debit/credit card, Fixed deposits, Loan services for personal and business purposes.
State bank of India has been praised worldwide for its quality services. It was listed in the Forbes most reputed Banks worldwide and grabbed the 29th position.
State Bank of India was also featured in the Fortune Global ranking. It is one of the most renowned financial companies in India. With its worldwide reputation and higher returns, every Indian citizen wants to invest in it.
Vision and Aim of SBI (State Bank of India)
State Bank of India has a glorious past. It has functioned for more than 200 years as a financial institution where it provided the customers with its amazing services. The vision of SBI is to put their customer first. As SBI is one of the major supporting pillars of the country, it has always put the satisfaction of its customers first.
SBI not only serves the Indian Citizens but also different industrial ventures, individuals, commercial enterprises, Public Bodies, and much more. The aim of SBI is simple, It is to fulfill the needs of Indian Citizens and provide excellent services to its users and scheme holders. This best Monthly income scheme in SBI is a step forward to aid the same.
Services offered by State Bank of India
The following services are offered by the state bank of India:
1. Deposit Accounts
- Saving Account – The State bank of India provides both, adults and minors an opportunity to open a bank account in SBI. There are mainly 5 types of Saving account under SBI, namely Basic saving Account, Small saving account, saving plus account, saving account for minors.
- Current Accounts – The current account offered by SBI can be maintained at a low cost. The minimum amount that is needed to open an SBI current account is INR 10,000.
2. Loan Services
SBI provides a loan in many categories, a few of them are mentioned below:
- Home Loan- This loan can be availed on the low-interest rates for the houses which are ready or built or buildings that are already under construction.
- Personal Loan- SBI provides 4 kinds of personal loans to its customers
- Load against property provided by SBI
- Gold Loan from INR 20,000 to INR 20 Lakh.
- Education loan of 5 kinds
- Two-wheeler loan
- Business loan
- Car Loan
3. Investment offers in SBI
The investment made in SBI is less risky in comparison to investments in other financial institutions.
Some of the investment offer accounts under the State bank of India are mentioned below:
- Fixed Deposits – The fixed deposit scheme offered by SBI is one of the most beneficial investment tools. SBI provides senior citizens with a higher interest rate on fixed deposits. Fixed deposit account in SBI also gives the option of opting for the best Monthly income scheme in SBI. This is one of the best SBI Monthly income schemes.
- Recurring Deposit- Under SBI Recurring deposit, a customer can make monthly deposits instead of making a lump-sum deposit at once.
What is a Monthly Income Scheme?
A monthly income scheme is for those people who want to invest in the financial market with a lump-sum amount and gain interest benefits on it. SBI Monthly income Scheme is a financial investment instrument based on it. The Monthly income scheme provides a definite income to the scheme holder. It can act as an alternate monetary source in the form of interests.
Monthly Income Scheme in SBI
The State Bank of India offers the best SBI monthly income scheme under which the scheme holders will get the benefit. Under this monthly income scheme in SBI, SBI has offered a special deposit scheme for its customers. With the help of this Monthly income scheme in SBI, you can start earning a monthly benefit after a definite time.
This SBI monthly income scheme is also known as SBI Annuity Deposit Scheme. Under this monthly income scheme in SBI, the customers have to submit a lump sum amount and for a limited time period. After some time they start to get benefit from it. The benefit under this monthly income scheme in SBI is given to the customers in monthly installments. this best SBI monthly income scheme can be transferred by the customer to any SBI branch across India.
Under this monthly income scheme in SBI, the customers will receive their deposited amount in monthly installments knowns as Equated Monthly Instalment. Under this Best SBI monthly scheme, the scheme holders will get additional benefit on the principal amount in the form of interest. A benefit of compounding will be offered to the scheme holders under this SBI Monthly income scheme.
According to the official website of SBI, the features of the SBI monthly income scheme are:
- Under the SBI Monthly income scheme, the scheme holders have to deposit a minimum amount to receive the same in monthly installments that will comprise the principal amount and the interest gained on it.
- The deposit amount will be based on an annuity on a monthly basis of INR 1000 for a specific time period under the SBI Monthly income scheme.
- Under this monthly income scheme in SBI, the minimum amount deposited by the scheme holder should not be less than INR 25,000 in any circumstances.
- Under this best monthly income scheme in SBI, there is no cap on the maximum amount deposited by a scheme holder.
- Under this SBI monthly income scheme, the rate of interest provided to the scheme holder will be the same as for the term deposit schemes for the general public and Senior Citizens.
- The payment of the annuity will be done on the completion of one month after the deposit date under the SBI monthly income scheme.
- Under this best monthly income scheme in SBI, in case of non-existent dates (29,30,31), the amount will be paid on the first day of the upcoming month.
- Under this monthly income plan, SBI has provided the nomination facility to its customers.
- Under this best monthly income scheme in SBI, a facility of Overdraft and loan is provided to the scheme holders in special cases. The load/overdraft service will be provided up to 75% of the annuity balance amount.
- Under this best monthly income scheme in SBI, the annuity amount will be paid to the scheme holder in the loan account after the overdraft/load has been disbursed.
- Under SBI monthly income scheme, a universal passbook is issued to the scheme holder in place of the Term Deposit.
- It is the best monthly income scheme in SBI as this SBI monthly income scheme provides the facility of the transfer of the account from one SBI Branch to another Branch.
- Under this best monthly income scheme in SBI, one can invest for a time period of 36, 60, 84,120 on monthly basis. The interest provided under this monthly income scheme in SBI will be similar to the term deposit interest rate.
- Under this SBI monthly income scheme, if you want to benefit INR 10.000 from the interest rates, then you will have to deposit INR 5,07,964. The interest rate applicable on this monthly income scheme in SBI is 7 percent that is the INR 10,000/-
- Under SBI Monthly income scheme, a scheme holder can make a payment of INR 1000/- per month. There is no cap for the amount deposited by the scheme holder. If a scheme holder chooses to pay on a monthly basis then the interest rate will be earned by him after a limited period of time.
- Under this best monthly income scheme SBI, the amount to be received on the monthly basis is predetermined and provided by the state bank of India every month.
These were some points related to the best monthly income scheme in SBI, for more information you can check the official website of the State bank of India or can visit the nearby branch.
Who is Eligible for SBI Monthly Income Scheme?
To avail of this best monthly income scheme in SBI, one has to make sure if one is eligible or not.
The following criteria are decided by the State bank of India to be an eligible beneficiary of the monthly income scheme SBI.
- If you want to be a scheme holder under the SBI monthly income plan then you must be a resident individual, this also includes the minors.
- Under this best monthly income scheme SBI, the account can be opened singly or jointly.
- Under this SBI Monthly income plan, no person who belongs to the NRE or NRO category has access to this monthly income scheme SBI.
Other Features of the SBI Monthly Income Plan
1. Minimum Amount
The minimum amount a scheme holder can deposit under the SBI Monthly income plan is INR 25,0000/-.
2. Maturity Period
The maturity period of the monthly income scheme SBI is from 3 years to 5, 7, 10 years.
3. Rate of Interest
The rate of interest under the monthly income plan SBI is similar to the rate of interest of Term deposit or fixed deposit scheme.
For example, if you make a deposit account then the interest on that amount will be based on the interest rates of a fixed deposit for five years.
The present rate of interest for the matured deposit accounts is 5.4% for 10 years whereas The deposit amount matured from three to five years provides the scheme holder, an interest rate of 5.3%.
Benefits of SBI Monthly Income Plan
- There are many benefits of investing in the Monthly income plan SBI. the important benefit of this monthly scheme in SBI is less risk as the State bank of India is a renowned bank. You invest your money in a relevant and trustworthy organization.
- There is no upper limit on the maximum amount you can submit under this scheme so you can invest as much as you want and reap the benefits in the form of interest.
- The SBI monthly income scheme provides you financial stability, as the monthly amount you receive is pre-determined.
- The amount deposited by you gets additional benefits in the form of compounding. So, this Monthly scheme in SBI provides better returns.
- The Monthly scheme in SBI is the best option for those who do not like to take risks while investing in financial markets. Senior citizens are ideal customers of the Monthly Income scheme in SBI.
- The amount deposited in the monthly income scheme in SBI is managed professionally. SBI is one of the best banks worldwide and is famous for its quality customer services, so you can be assured about your investment as it is managed by professionals who have a better understanding of Financial markets.
- The amount you receive under this Monthly income scheme SBI is predetermined so you get a guaranteed income on your investment.
ROI Applicable for Senior Citizens under Monthly Income Plan SBI
The State bank of India always provides the senior citizens some additional benefits in its scheme. Under the monthly income plan SBI like the fixed deposit plans of SBI, the senior citizens get 50 basis points in comparison to the general public.
The interest rate applicable to senior citizens is 1% above that of the general applicants.
SBI Monthly Income Scheme – FAQs
Q1. Is there any Monthly income scheme in SBI which can benefit me on monthly basis?
Yes, the State bank of India has launched a Monthly Income plan SBI, under which a scheme holder can get a fixed pre-determined amount on monthly basis.
Q2. Is it safe to invest in the monthly income plan in SBI?
Yes, the State bank of India is one of the leading bank organizations. Investing in its monthly income plan is less risky in comparison to other financial instruments.
Q3. Does the Monthly income Plan SBI provides senior citizens a higher interest rate?
Yes, SBI provides the senior citizens a higher interest rate on its Monthly income plan SBI. The senior citizens always get one percent above the general applicant.
Q4. What is the minimum amount I can deposit in the SBI Monthly income plan?
The minimum amount you can deposit in the best monthly income scheme in SBI is INR 25,000/-
Q5. Can I open a joint account under the monthly income scheme in SBI?
Yes, you can open a joint account under the monthly income scheme SBI.
Q6. Can a minor avail of the SBI Monthly income scheme?
Yes, a minor is eligible to avail of the SBI Monthly income scheme.
Q7. What are the minimum and maximum maturity period plans in the best monthly income scheme in SBI?
The minimum maturity period under the monthly income scheme SBI is 3 years and the maximum time period for maturity is 10 years.
Q8. What do I need to consider before investing in the monthly income plan of SBI?
Before investing in the SBI monthly income plan make sure that you keep your financial goals clear, for how long and how much you want to invest in this best monthly income scheme in SBI.
Q9. How much interest rate is paid under the SBI monthly income Plan?
An interest rate of 5.40% per annum is provided to those who choose a maturity period of 10 years. The maturity period for the 3 to 5 years monthly income plan in SBI is 5.30% per annum.