Monthly Income Plan, Best Investment Plan for Monthly Income | Aviva India

6 Best Monthly Income Schemes In India

6 Best Monthly Income Schemes In India

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 are we 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 seven awesome monthly income schemes that you can invest in this year!

1. Fixed Deposit

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 which 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 investment scheme, 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.


4. Corporate Deposits

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. SWP from 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.

6. Senior Citizen Saving Scheme

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 go! We’ve listed out six of the best investment and income schemes for you. Now it’s your turn to be proactive and start investing in these for a safe and secure future!

Oct 58/19

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