SBI Monthly Income Scheme in 2025

Imagine this, you have a stable source of income without any stress of work or risky investments. You can use this income for a retirement plan or to cover your expenses and other bills. Sounds like a relief, right? This is exactly what the SBI Monthly Income scheme offers. The scheme provides a steady interest payout in monthly installments on your lump sum deposit throughout the policy period. This can be a dependable option to earn a passive regular income for retirees, homemakers, and senior citizens without taking any risks. This blog discusses everything you need to know about the SBI Monthly Income Scheme in detail.

Types of SBI Monthly Income Scheme

Here are the 6 most reliable Monthly Income Schemes offered by SBI:

1. SBI Annuity Deposit Scheme

The SBI Annuity Income Scheme is the most popular SBI Monthly Income Scheme. It allows you to deposit a lump sum and enjoy interest on it over the policy period. The attractive part is, along with the interest payout you receive a part of the principal amount. This increases the amount of monthly payment and gives a sense of financial freedom to the policyholder. The monthly installments can without any stress cover the regular expenses and provide peace of mind. 

Note: You do not get the initial deposit back at the end of the policy tenure as it is paid out over the monthly installments. 

Key Features:

• Period of Deposit: 3, 5, 7 or 10 years.
• Minimum Deposit: Should be sufficient to provide a minimum monthly annuity of ₹1,000.
• Maximum Deposit: No upper limit
• Eligibility: Indian residents (Can also be a minor)
• Interest Rate: Varies from 3.50% to 7.50% depending on the tenure and age of the investor.
• Premature Withdrawal: Allowed for deposits up to ₹15 lakhs with a small penalty. In case of death of a depositor; premature payment is allowed without any limit.
• Taxability: The interest earned is taxable as per your income tax slab.
• Loan Facility: Can avail up to 75% of the annuity balance amount
• Availability: Available at all SBI branches.

2. SBI Mutual Funds 

The SBI Mutual Funds invest in debt and money market instruments. Investors can earn regular income through dividends, which are based on the performance of the underlying investments. 

Here are some high performing SBI Mutual Funds:

• SBI Conservative Hybrid Fund

This fund primarily invests in debt and money market instruments, with up to 25% exposure to equities. The main goal is to provide regular income and potential capital growth.

Key Features:

• • Aims to give better returns than fixed deposits over time.
  • Spreads investments across both equity and debt for better balance.
  • Adjusts investments based on market trends to improve returns.
  • Offers stable growth with low risk and high-quality investments.
  • Provides a mixed balance of risk and reward for conservative investors.

• SBI Equity Savings Fund

This fund balances equity and debt investments to provide regular income and moderate growth. It uses arbitrage opportunities for steady returns and suits investors seeking both income and capital appreciation.

Key Features:

• • Minimum 65% of the fund is invested in equity, with 15-70% in cash-future arbitrage and 20-50% in net long equity.
  • Debt and money market instruments make up 10-35% of the portfolio.
  • Adjusts its asset allocation based on market conditions and arbitrage opportunities.
  • A balanced mix of equity and debt provides steady income.
  • Diversified allocations across equity, arbitrage, and debt help reduce volatility.

• SBI Corporate Bond Fund. 

This fund primarily invests in high-quality corporate bonds rated AA+ and above. It offers medium-term regular income with moderate liquidity through money market investments and diversified credit risk.

Key Features:

• • Reduces credit risk by investing in various issuers.
  • Ensures liquidity for investors.
  • Suitable for medium-term income needs.
  • Reduces credit risk by focusing on highly rated debt securities.
  • Relies on professional assessment to ensure steady performance.
  • Note: The Monthly income plans through mutual funds are subject to market risks and do not guarantee fixed returns.

3. SBI Life Insurance

SBI Life Insurance guarantees survival benefits by offering both insurance and regular income. Under these plans, the premium paid is invested, and its returns fund the payouts. The frequency of payouts can be selected as monthly, half-yearly, or yearly. In case of the policyholder’s death, the nominee receives the sum assured. This ensures protection and financial security. 

• SBI Life- Smart Money Planner 

This is a savings plan that offers the advantage of protection as well as regular cash flow to meet your financial requirements.

Key Features:

• • Assures regular income in equal instalments through the payment period.
  • Provides flexibility for single or fixed-period premium payments.
  • Guarantee life coverage for the full length of the policy.

• SBI Life- Smart Income Protect

This is a steady income plan that helps achieving major and minor financial goals while securing the family's financial future.

Key Features:

• • Ensure life insurance protection throughout the policy term.
  • Upgrade your coverage with three optional riders for a nominal fee.
  • Vested reversionary bonuses and any terminal bonus are paid as a lump sum upon the policy's maturity. 

4. SBI Life – Wealth Creation Plans

SBI Life - Wealth Creation Plan is a unit-linked insurance plan. It focuses on wealth creation through investments and providing a regular income through systematic monthly withdrawals. It is ideal for individuals who want to protect their family’s future while building wealth.

• SBI Smart InsureWealth Plus 

This is a flexible ULIP plan that helps build your wealth as well as secure your family's future.

Key Features:

• • A SIP with market-based returns along with life coverage.
  • Offers investments strategies like Trigger, Auto Asset Allocation, and Smart Choice to choose from.
  • Return of mortality charges upon the maturity of the inforce policy.

• SBI Saral InsureWealth Plus

This is a market-linked plan designed to create wealth while protecting the future of your loved ones.

Key Features:

• • Simple life insurance for easy coverage.
  • Choose from 8 different funds tailored to your risk profile.
  • Systematic monthly withdrawals ensure consistent income.

5. SBI Life – Savings Plans

SBI Life’s Savings Plans are a combination of life insurance and savings. These plans help you to build savings over time and ensure that you receive guaranteed returns along with life insurance coverage for peace of mind.

• SBI Smart Platina Assure 

This is a savings plan that guarantees return in order to help you meet financial goals while providing life coverage for the family.

Key Features:

• • Benefit from annual guaranteed additions of 5.75% to 6.25% throughout the policy term.
  • Premiums for 7 to 10 years provide coverage for 15 to 20 years.
  • Option to choose monthly or annual premium payment for convenience. 

• SBI Shubh Nivesh

This plan combines savings and protection with regular income in order to let families achieve financial goals.

Key Features:

• • Provides triple benefit of insurance cover, savings, and regular income in one policy.
  • Offers insurance coverage up to the age of 100 with the Endowment plan, including a Whole Life Option.
  • Upgrade your coverage with three optional riders for a nominal fee.

• SBI Smart Platina Plus

This plan offers life insurance coverage and long term income. The maturity and survival benefits help you build a strong financial future for you and your family.

Key Features:

• • Option to choose between Guaranteed Income & Life Income.
  • Enjoy a return of 110% of the total premiums paid.

6. SBI Life – Smart Annuity Plus (Retirement Plan)

The SBI Life Smart Annuity Plus offers guaranteed income for individuals seeking a stress-free retirement. It provides immediate and deferred annuity options, along with the benefit of joint life coverage. This ensures financial security for both the policyholder and their family. The Lifetime Regular Income option is available starting as early as age 30.

Key Features:

• Enjoy a higher payout for a large premium.
• Benefit from an annuity that increases at a compound rate.

Benefits of SBI Monthly Income Scheme

1. Guaranteed Monthly Income: The SBI Monthly Income Scheme guarantees a reliable monthly income stream, which makes it perfect for pensioners and retirees.

2. High Safety: As it is a government-backed scheme, the deposit amount is kept highly safe and the market fluctuations do not cause any effects on returns.

3. Interest Payout Flexibility: The SBI Monthly Income scheme offers flexibility in interest payout frequency, with the options being monthly, half yearly and yearly.

4. Nomination Facility:  With a simple and straightforward nomination process, investors can without a hassle nominate a family member for the SBI Monthly Income Scheme account. 

5. Loan Facility against MIS: After 6 months of investing, investors can avail a loan against the balance of MIS account. This makes it more flexible.

6. Affordable Minimum Deposit: Minimum deposit amount is just ₹1,000. This makes it easy for anyone to open an account and begin their investment journey.

7. No Maximum Deposit Limit: There is no upper limit for deposits and deposits over 2 crores are treated as bulk deposits.

8. Ideal for One-Time Investments: It’s ideal for individuals looking to invest a large amount upfront and enjoy the benefits of monthly returns.

How to apply for SBI Monthly Income Scheme?

The above-mentioned SBI Monthly Income schemes are available at all SBI branches. To apply, visit your nearest branch and ask a staff member for a brief overview of the Monthly Income Schemes. Once you've chosen the most suitable one, fill out an application form and provide the necessary documents. Be sure to choose an appropriate tenure and initial deposit amount. You will also need to select a nominee. After completing these steps, you can make your initial deposit and receive confirmation via a passbook or receipt.

Documents required:

• Application Form
• PAN Card
• Aadhar Card
• Two Passport-Sized Photographs
• Proof of Identity
• Proof of Address

To sum it up….

SBI Monthly Income Scheme such as annuity deposits, mutual funds, and life insurance plans cater to various investment needs and provide a steady monthly income. They are an ideal choice for individuals seeking financial security with guaranteed returns on their investments. They also cater to investors willing to take moderate risks for potentially higher gains through Mutual Funds. Whether you are looking for a retirement plan, a savings plan or working towards a long-term financial goal, SBI Monthly Income Scheme offers flexibility  for everyone. 

FAQs

Ques 1. Who can invest in SBI Monthly Income Scheme?

Ans: Indian residents, including minors, can invest in these schemes.

Ques 2. Is it risky to invest in SBI Mutual funds? 

Ans: They have low to moderate risks as they invest in the money market which tends to fluctuate.

Ques 3. Can I withdraw money from Monthly Income Schemes  before the maturity of the policy? 

Ans: Premature withdrawal is possible with a small penalty for most schemes.

Ques 4. Are the investments in SBI Monthly Income Scheme tax-friendly? 

Ans: Yes, interest earned is taxable as per your income tax slab, with some potential deductions.

Ques 5. Which Monthly Income Scheme is best for a retirement plan? 

Ans: SBI Life Smart Annuity Plus offers guaranteed income and it is specifically designed for retirement.

Ques 6: What is the minimum amount I can invest in SBI Monthly Income Scheme? 

Ans: The minimum deposit should provide at least ₹1,000 monthly annuity.