In this video we will learn about State Bank of India’s Monthly Income Plan (MIP) by opening a non-cumulative FD which guarantees you an assured monthly income on your lump sum amount.
Features of this scheme are as follows:
- You can opt for Payment of interest at Monthly/Quarterly/Calendar quarter basis as per your requirement.
- If you opt for MIS in SBI then keep in mind that Payment of your Monthly interest will be at discounted rate.
- Senior citizens will get slightly higher interest compared to non-senior citizen individuals. While writing this page, Senior Citizens get 0.25% extra interest rate for amount above INR 10,000.
- You can park your lump sum amount in SBI and get monthly/quarterly interest income on that amount for upto 10 years.
- There is NO limit on maximum amount that you can deposit in a non-cumulative FD.
- When you park your lump sum amount in SBI, you may get Loans / overdraft facility upto 90% of the Principal deposit.
- MIS deposit in SBI have nomination facility.
- Premature withdrawal is also allowed. However keep in mind that For Retail Term Deposit up to INR 500000, the penalty for premature withdrawal is 0.50% for all tenors and for deposits above INR 500000 but below INR 1 crore (INR 10000000), the applicable penalty is 1% for all tenors.
- TDS will be deducted from this type of deposit. However you can submit form 15G or 15H, if you are eligible.
- Automatic renewals will take place only when there is no maturity instructions given by you at the time of opening of Term Deposit account or any time before maturity of deposit.
- You can check latest interest rate on THIS PAGE