This page explains the monthly income scheme of the State Bank. It tells the latest interest rate for June 2026 and special benefits for senior citizens. It also tells you how to use the SBI monthly income scheme calculator. If you are looking for a safe and steady interest based monthly payout from SBI, you are at the right place.
What Is the SBI Monthly Income Scheme?
SBI does not offer a product labeled as SBI Monthly Income Scheme June 2026. Instead, State Bank of India provides two ways to earn regular monthly income by fixed deposits:
SBI Fixed Deposit (FD) with Monthly Interest Payout
- You deposit a lump sum for a fixed tenure.
- Each month the interest earned is credited to your linked savings account.
- Your principal stays intact and is returned at maturity.
SBI Annuity Deposit Scheme
- You deposit a lump sum one time.
- You get fixed installments per month.
- They (EMI) are made of interest + a portion of your principal.
- By the end of the tenure, your full deposit is returned to you in the form of these monthly payouts.
Both options are backed by government assurance.
The SBI monthly income scheme June 2026 through these FD-based products is particularly well-suited for:
- Retirees
- Senior citizens
- Conservative investors who need predictable cash flow every month
SBI Monthly Income Scheme Calculator — How to Estimate Your Monthly Income
The SBI monthly income scheme calculator helps you estimate your monthly payout. You must check it out before investing.
Formula for FD with Monthly Payout
Monthly interest = (Principal × Annual Interest Rate) ÷ 12
Example: If you deposit ₹10 lakh at 7.00% p.a. for 2 years:
Monthly income = (1,000,000 × 7%) ÷ 12 = ₹5,833 per month
Your ₹10 lakh principal is returned fully at maturity.
For the Annuity Deposit Scheme
The annuity payout includes both principal and interest. The monthly EMI is higher than a plain interest payout because part of the principal is also returned each month. Use the online SBI Annuity Deposit calculator at SBI.co.in for exact figures.
Example
A senior citizen investing ₹30 lakh in the Senior Citizen Savings Scheme at 8.20% p.a. can expect approximately ₹20,500 per month.
Where to Access the Calculator
- SBI official FD calculator: SBI.co.in
- SBI Securities FD calculator: SBIsecurities.in
SBI Monthly Income Scheme Interest Rate — June 2026
The SBI monthly income scheme interest rate depends on:
- The tenure you choose
- Whether you are a general or senior citizen depositor
Below are the latest SBI retail FD rates (for deposits below ₹3 crore) effective as of 2026.
General Public Rates:
| 7 days to 45 days
|
3.50% p.a. |
| 46 days to 179 days |
5.50% p.a |
| 180 days to 210 days |
6.00% p.a. |
| 211 days to less than 1 year |
6.25% p.a. |
| 1 year to less than 2 years |
6.80% p.a.. |
| 2 years to less than 3 years |
7.00% p.a. |
| 3 years to less than 5 years |
6.75% p.a.. |
| 5 years to 10 years |
6.50% p.a.. |
Senior Citizen Rates (additional 0.50% over general rates):
| 1 year to less than 2 years |
7.30% p.a.. |
| 2 years to less than 3 years |
7.50% p.a. |
| 3 years to less than 5 years |
7.25% p.a. |
| 5 years to 10 years |
7.00% p.a. (up to 7.50% under special schemes). |
Note: Rates are subject to change at SBI's will. Always check the latest rates at SBI.co.in before investing.
How to Open an SBI Monthly Income Scheme Account
Online (Existing SBI Account Holders)
- Log in to SBI Internet Banking at onlineSBI.SBI
- Go to the "Fixed Deposit" or "Annuity Deposit" tab
- Select the scheme type and choose "Monthly" as the payout option
- Enter deposit amount and tenure
- Confirm with OTP and submit
- Your monthly interest will be credited automatically to your linked savings account
You can also do this via the YONO SBI app on Android or iOS.
- Just go to "Deposits" or "Term Deposit"
- Select FD type
- Choose monthly payout
- Confirm
Offline (Branch Visit)
- Visit your nearest SBI branch
- Carry your KYC documents
- Request the FD or Annuity Deposit application form
- Fill in the form and choose monthly payout
- Select your deposit amount and tenure (36, 60, 84, or 120 months)
- Deposit the amount via cash, check, or bank transfer
- Collect your FD receipt or passbook
Documents Required
- PAN Card (without it, TDS is deducted at 20% instead of 10%)
- Aadhaar Card or other valid photo ID (passport, voter ID, or driver's license)
- Address proof (utility bill, bank statement, or any government-issued document)
- Passport-size photograph
- Existing SBI savings account (required for online application; for new customers, open one at the branch)
Tax Implications
Interest earned from the SBI Monthly Income Scheme FD is taxable under "Income from Other Sources" as per your applicable income tax slab.
Key points:
| TDS |
- TDS at 10% applies if total FD interest exceeds ₹50,000 per year (₹1 lakh for senior citizens)
- Without PAN, TDS is 20%
|
| Form 15G (for non-senior citizens) or Form 15H (for senior citizens) |
Submit at your branch to avoid TDS deduction if your total income is below the taxable threshold
|
| Tax Saver FD |
- A 5-year lock-in FD that qualifies for deduction up to ₹1.5 lakh under Section 80C
- Note: Monthly payout is not available for Tax Saver FDs
|
| Annuity Deposit |
- Interest component is taxable
- The returning principal component is not taxable
|