Monthly Income Scheme (MIS)

Simply put, a monthly income scheme in a fixed deposit refers to a non-cumulative fixed deposit. In a fixed deposit monthly income scheme, you receive a monthly payout for the interest earned on your investment.

Check out this table for monthly income scheme interest rates in banks for a tenor of 3 years:

Disclaimer: The above interest rates are subject to change at the issuer’s discretion.

Here are the monthly income scheme interest rates senior citizens get to enjoy when they invest in an FD for a tenor of 3 years:

Disclaimer: The above interest rates are subject to change at the issuer’s discretion.

The eligibility for investing in an FD MIS may vary based on the issuer. Here are some common eligibility criteria you need to meet:

• You should be above the age of 18

• You should either be Indian or an NRI

• You should have a guardian (18+ years) to invest in FD MIS as a minor

You can also invest in the fixed deposit MIS if you are a company, institution, or HUF. Be sure to check the eligibility terms of the issuer before investing. This will ensure that your investment process goes seamlessly. 

Generally, you will be required to submit the following documents to invest in a fixed deposit:

• ID and address proof (PAN card, Aadhaar card, driver’s license, voter ID)

• Accurately and duly filled application form

• Photographs

• Other KYC documents

However, if you are booking an FD online, all would be required to enter is

• Your personal and bank account details

• Complete your KYC by PAN/Aadhaar

Complete the payment via NetBanking or UPI and on successful payment, you will receive an acknowledgement via SMS or email.

Apart from the benefit of stable and regular earnings, here are the other perks of a MIS:

• Maximised returns with flexible tenors

• Withdrawal facility to fund your unplanned needs

• Stable returns irrespective of the market volatility

• Overdraft facility to keep your corpus safe while meeting emergency needs

• Nominee option to secure the future of your loved ones in your absence

• Higher interest rates for senior citizens

Interest income earned from FDs is generally taxable. The interest earned is added to your total income and taxed as per your income tax slab.

Also, TDS is deducted by your issuer if the interest earned exceeds a certain threshold.

• If your earnings exceed ₹40,000 (₹50,000 for senior citizens), 10% TDS will be levied

• If you do not have a PAN card, 20% TDS will be levied

However, in the case of NBFC FDs, this threshold limit is set at ₹5,000.

The process of investing in a monthly income scheme is similar to that of the regular FDs. However, when choosing your preferred FD details, you will be required to opt between a cumulative and non-cumulative option. 

On opting for the non-cumulative option, you will be provided options with the frequency of payout to choose from. Click on the “monthly” option to opt for the monthly income payout scheme and complete the payment process to book your fixed deposit.

You can also invest offline by visiting the issuer’s branch. Ask a representative about investing in a fixed deposit monthly income scheme, and they will guide you through the process. In any case, be sure to choose the monthly payout option.

You can find various fixed deposit options on Bajaj Markets. Here, you can compare various options and invest in an FD through a convenient online application process.