Monthly Income Scheme - Best Investment Plans for Regular Income

Monthly Income Scheme - Best Investment Plans for Regular Income

Struggling to hold on to a job? Nothing palatable coming your way?

Don’t sweat it, there are plenty of ways to ensure that you earn a stable monthly income. Wondering what we are talking about?

The topic of the day is monthly income schemes folks!

Often it so happens that your business or job fails to provide you with the monetary satisfaction you crave. Or it may even be that you’re in between jobs and in need of financial stability. What course do you choose then to ensure that despite your situation you still get a fixed monthly income? You invest in monthly income schemes, that’s how!

Here are six awesome monthly income schemes that you can invest in this year!

1. Fixed Deposits with Monthly Payout

Undoubtedly one of the best and most low-risk income schemes is a bank Fixed Deposit (FD). In this scheme, you invest a certain sum of money for a fixed period of time until you accrue a monthly interest income on your deposit. The rate of interest depends on the tenure of your FD. Usually, most banks offer around 8-9% interest rate on FDs. However, this rate may further scale up in the near future, making FD a more appealing option for individuals who have a low-risk tolerance quotient.

You should also know that banks deduct TDS at a 10% rate on the interest income earned by you if the yearly interest income exceeds ₹10,000.

2. Post Office Monthly Income Scheme (POMIS)

In case you didn’t know it yet, post offices in our country offer a host of banking services and products and Post Office Monthly Schemes is one of them. Under this best investment plan for monthly income, you can earn a steady monthly income at a 7.3% return rate. Not bad, right? In a POMIS, you can invest up to ₹4.5 lakhs in an individual account and up to ₹9 lakhs in a joint account.

Also, it is a really low-risk investment with an investment period of 5 years. On maturity, you will not only get back your principal amount but also a 5% bonus amount.

3. Long-term Government Bond

Long-term government bonds are another safe option to earn a regular income. Although the maturity period is considerably long (15-20 years), government bonds generally offer 8% return twice a year. half-yearly. So, you can collate them with other investments of yours to earn income throughout the year. Also, on maturity, you get back the entire principal amount.

Another benefit of a long-term government bond is that they are traded in the secondary market and hence, you can sell them off as and when you wish.

Also Read: A Comprehensive Guide to Choosing the Best Investment Plans for You

4. Corporate Fixed Deposits with Monthly Payout

Corporate deposits are offered by numerous Non-Banking Financing Companies (NBFCs) as well as housing finance companies. These companies offer interest either on a quarterly or a half-yearly basis. The ideal approach here would be to diversify your investment and invest in the funds of different high-ranking companies. Also, they have separate interest rates for senior citizens ranging between 0.25% and 0.5%.

While corporate deposits are a great option, you should always check the credibility and financial integrity (as per CRISIL standards) of a company before investing in it.

5. Systematic Withdrawal Plans (SWP) in Mutual Funds

As you know, mutual funds are hugely popular in India, especially with the millennials. And a Systematic Withdrawal Plan (SWP) is an excellent way to ensure a steady monthly income from mutual funds. In this scheme, you can specify a certain amount that you want as a monthly payment on your investment. So, every month on a designated date, units corresponding to that amount would be redeemed. Unlike dividends (that depend on profits made by funds), this scheme guarantees a regular income, making it one of the best monthly income scheme in India.

Also Read: Top 5 Investment options in India

6. Senior Citizen Savings Scheme (SCSS)"

The senior citizen saving scheme, as the name suggests, is an exclusive scheme designed for senior citizens. So, only individuals of 60 years and above can invest in this scheme.

This is a very low-risk and high-return investment scheme that can act as an excellent financial support for retired people in their old age. The scheme comes with an interest rate of 9% and interest income is paid after 3-month intervals throughout the year. The senior citizen saving scheme is offered both by banks and post offices throughout the country. However, it must be availed within the first month of receiving the retirement benefit and also the deposit must not exceed the benefit received. While the maturity tenure of the scheme is 5 years, it can be extended by another 3 years.

So, there you have it! We’ve explored some of the best income schemes and investment plans that can help you build a steady and reliable source of income. Each option comes with its own set of features, benefits, and risk levels, allowing you to choose what aligns best with your financial goals and risk appetite.

Now, it’s time to take the next step—be proactive and start investing to secure your financial future. A well-planned investment today can ensure consistent income and peace of mind tomorrow.

Now, let’s understand how these Monthly Income Schemes work and how they can fit into your overall financial planning strategy.

How Does a Monthly Income Scheme Work?

A Monthly Income Scheme (MIS) works by allowing you to invest a lump sum amount, which then generates regular monthly income in the form of interest or returns. It is designed to provide financial stability and predictable cash flow, especially for retirees or individuals seeking steady income without high risk.

How it works:

• You invest a fixed lump sum amount in the scheme
• The invested amount earns interest or returns based on the scheme type
• Returns are paid out to you monthly as income
• The principal amount remains invested for a fixed tenure
• At maturity, you receive your initial investment back (as per plan terms)

This structure makes MIS a reliable option for managing daily expenses and ensuring consistent income throughout the investment period.

Types of Monthly Income Schemes

Monthly Income Schemes (MIS) come in various forms, catering to different risk appetites and financial goals. These schemes are designed to provide regular income while preserving capital, making them suitable for retirees, conservative investors, and individuals seeking stable cash flow. Understanding the different types helps you choose the right option based on your return expectations and risk tolerance.

Common types of Monthly Income Schemes:

• Post Office Monthly Income Scheme (POMIS): Government-backed scheme offering fixed and secure monthly returns
• Bank Fixed Deposits (Monthly Payout): FDs with interest paid monthly, offering low risk and stable income
• Debt Mutual Funds (SWP): Invest in debt funds and withdraw a fixed amount monthly through Systematic Withdrawal Plan
• Annuity Plans: Insurance-based plans providing guaranteed monthly income, often for retirement
• Senior Citizen Savings Scheme (SCSS): High-interest government scheme for senior citizens with periodic payouts
• Corporate Fixed Deposits: Offer higher returns than bank FDs but carry slightly higher risk

Choosing the right scheme depends on your income needs, risk profile, and investment horizon.

Benefits of Monthly Income Schemes

• Regular Income Stream: Provides fixed monthly payouts, helping you manage day-to-day expenses with ease.
• Financial Stability: Ensures predictable cash flow, especially useful during retirement or periods of reduced income.
• Low to Moderate Risk Options: Many schemes, especially government-backed ones, offer stable returns with minimal risk.
• Capital Preservation: Helps protect your initial investment while generating income over time.
• Flexible Investment Choices: Offers a variety of options like bank deposits, post office schemes, mutual funds, and annuities.
• Suitable for Retirement Planning: Ideal for retirees seeking steady income without relying on active earnings.
• Easy to Invest and Manage: Simple investment process with minimal monitoring required in most cases.
• Customizable Payout Options: Some schemes allow you to choose payout frequency and structure based on your needs.

Who Should Invest in Monthly Income Schemes?

Monthly Income Schemes are ideal for individuals seeking stable and predictable income with relatively low risk. They are especially suitable for retirees who want to replace their regular salary with a steady monthly payout. Such schemes also benefit senior citizens who rely on consistent income for daily expenses and medical needs. They are a good fit for conservative investors who prefer capital protection over high returns. Individuals with surplus funds looking to generate passive income can also consider these schemes. Additionally, they are useful for those planning for short- to medium-term financial goals where liquidity and regular cash flow are important.

Overall, Monthly Income Schemes are best suited for anyone prioritizing financial stability, regular income, and low-risk investments.

Taxation of Monthly Income Schemes

The taxation of Monthly Income Schemes (MIS) depends on the type of investment you choose. While these schemes provide regular income, the returns are generally taxable as per your income tax slab, except in specific cases. It is important to understand the tax treatment to plan your investments efficiently.

Overall, while MIS options ensure steady income, most do not offer tax-free returns. Choosing the right mix based on your tax bracket and financial goals is essential for optimising post-tax income.

How to Choose the Best Monthly Income Scheme?

Choosing the best Monthly Income Scheme (MIS) requires evaluating your financial goals, risk appetite, and income needs. The right scheme should offer a balance between regular income, safety, and returns, ensuring financial stability over time.

Steps to choose the best monthly income scheme:

• Assess Your Income Needs: Determine how much monthly income you require for expenses.
• Evaluate Risk Appetite: Choose between low-risk (FDs, POMIS) or moderate-risk options (mutual funds).
• Compare Returns: Look at interest rates or expected returns across different schemes.
• Check Tax Implications: Understand how returns will be taxed to estimate actual income.
• Consider Investment Tenure: Align the scheme duration with your financial goals.
• Review Liquidity: Ensure you can access funds if needed without heavy penalties.
• Verify Credibility: Invest in trusted institutions or government-backed schemes.

A well-chosen MIS ensures steady income and long-term financial peace of mind.

Start Earning Monthly Income Today with Aviva India

Take a step towards financial independence by choosing reliable monthly income solutions with Aviva India. Designed to offer steady income, flexibility, and long-term security, Aviva’s plans help you meet your daily needs while building a stable financial future.

Why choose Aviva for monthly income plans?

• Guaranteed Regular Income: Enjoy consistent payouts to manage your lifestyle expenses
• Flexible Plan Options: Choose income frequency and tenure as per your needs
• Life Insurance Cover: Secure your family along with income benefits
• Customizable Solutions: Tailor your plan with riders and features
• Trusted Expertise: Backed by global experience and customer-centric approach

Explore Aviva’s range of plans today and start building a dependable monthly income stream with confidence.

Oct 58/19