6 Best Investment Plan for Monthly Income, their Features and Benefits 2024


5 min read

Updated on Jan 12, 2024

Whether we want to accept it or not, we all need money to live life comfortably. However, we cannot make a similar kind of money all through our life until and unless we are business tycoons. And whatever we are earning today, a part of it should be kept for retirement years. This is why making investment plans is so important, and that too at the right time.

There are several best monthly income schemes in India that you can opt for. Let us take a look at the best investment plan for monthly income today here.

1. Fixed Deposit (FD) for Monthly Income

A fixed deposit is one of the best income plans that come under the low-risk category. This scheme is for Indian citizens and it helps generate higher returns. You will be able to invest a particular amount of money under this scheme and for a certain period of time. In the period that you are investing money, you will be able to earn more interest. The rate of interest though depends on several factors, and you must know about them in detail. The majority of banks offer 5-6% interest rates on fixed deposits; the rates are higher for senior citizens. The minimum deposit amount is not the same in every bank and may vary from one bank to the other. Also, tenure impacts the interest rate. The depositor will get a nomination facility that will benefit their families in the event of their death.

Also Read: 1 Crore FD Interest Per Month

2. Government Bonds for Monthly Income

The Government of India issues a government bond and the period of such bonds ranges from 5 years to 40 years. Regular interest rates are paid to the investors; thus, giving investors the security of fixed income. A few of the government bonds are cash management bills, treasury bills, fixed bonds, floating-rates bonds, zero-coupon bonds, and many more. Customers are allowed to sell or purchase these government bonds like equity instruments. A stable interest rate is offered to the investors. Thus, it shows ways of creating a guaranteed return plan for each month. However, before putting your money in government bonds, you should have a thorough knowledge of the market risks that are involved in such bonds. It is one of the best investment plans for monthly income.

Also Read: Guaranteed Income Plan

3. LIC Monthly Income Plans

This is another best investment plan for monthly income in India for people who want to invest their hard-earned money in a monthly income plan. The plan is offered by LIC, which is the largest public insurance company. This is a great scheme, especially for the senior citizens so that they can earn good profits. The name of the plan is Jeevan Akshay VI, in which the investors can put money in a lump sum amount that is as low as INR 1.5 lakhs. If you are interested in buying this plan, you would be required to select the type as well as the mode of payment from several options.

Also Read: LIC Premium Without Tax

4. Senior Citizen Savings Scheme (SCSS) for Monthly Income

A Senior Citizen Savings Scheme (SCSS) is a post office monthly income plan and is backed by the government. The plan comes with a heap of benefits. According to this plan, senior citizens are able to invest a minimum of INR 1000 while the maximum amount can be INR 15 lakhs. Senior citizens are allowed to open a savings scheme in either or both public as well as private banks, depending on their choices. This is certainly one of the best investment for monthly income in India that will enable you to achieve better returns at 7.4%. Apart from this, the plan also enables an individual to ensure financial protection after retirement. The plan comes with a tenure of 5 years, and you as a policyholder can even extend it after the maturity process.

5. SWP from Mutual Funds for Monthly Income

SWP, Systematic Withdrawal Plan is offered by mutual funds. Investors can earn good returns by putting their money into this kind of plan. Investors can expect a steady monthly income from mutual funds, and this ultimately creates high income. Investors can get monthly income consistently. At the same time, you as an investor should be aware of all the terms and conditions thoroughly before they make up your mind to buy this plan. You can even use a calculator to understand the total returns as well as the future value that can be expected.

Also Read: How To Withdraw Money From Mutual Fund

6. Post Office Monthly Income Scheme (POMIS)

This is a monthly income plan that is offered by post offices in India. It is just the right monthly income plan option for people who want to put their money in zero-risk investment plans. At present, the plan offers around a 6.6% rate of interest to depositors, and people will be able to invest INR 15 lakhs at the max and INR 1500 minimum. The post office MIS interest rate often changes every fiscal year, and every depositor should be aware of this before they many any investment.  Depositors also should be aware of the fact that the lock-in period of the plan is 5 years; therefore, the money cannot be withdrawn immediately. To receive the benefits of the plan, other individuals can also be nominated by the customers; however, it is only allowed in case of the unfortunate event of death.

You as a customer will be allowed to transfer the account from one post office to another. You can use the post office monthly income scheme calculator online before opening an account. Apart from this, you will also be able to open a joint account as per your needs. You will not be able to make a premature withdrawal one year from the date of the first deposit.

Also Read: Post Office Schemes For Boy Child

Apart from these, there are many other best monthly income plans in the country that you can opt for. Make sure you use the calculator to find out if it is affordable to you.

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FAQs: 6 Best Investment Plan for Monthly Income in India 2024

Who is eligible for the monthly income scheme?

MIS or monthly income schemes are available at a certain rate of interest every month and are suitable for people who are looking at earning a regular fixed income with guaranteed returns.
Any individual can buy a MIS scheme in his/her own name. In case of group schemes, it can be availed with more than one individual in a joint scheme with suitable repayment instructions. If you want to buy a MIS scheme for a minor, it can be done by the guardian of the minor.

Is a monthly income scheme good?

Post Office Monthly Income Scheme (POMIS) or MIS, as it is commonly known, is a type of investment that allows monthly returns. It is regarded as a good scheme because it is a government backed investment option and is most suitable for risk-averse individuals who are looking for consistent and regular income.

Which bank is best for Monthly Income Scheme (MIS)?

Following banks are among the ones that are regarded as best for offering MIS schemes:

1. HDFC bank
2. ICICI Bank
3. Axis Bank

What is the best monthly income plan in India?

Here are some of the best investment plan for Monthly Income:

1. Senior Citizen Saving Scheme
2. Post Office Monthly Income Scheme
3. Long-Term Government Bonds
4. Corporate Deposits
5. Monthly Income Plans
6. Pradhan Mantri Vaya Vandana Yojana
7. Life Insurance Plus Saving
8. Systematic Withdrawal Plans

Which Govt. scheme is best for monthly income?

Here are 6 Best Government backed Monthly Income Schemes In India:
1. Fixed Deposit
2. Post Office Monthly Income Scheme (POMIS)
3. Long-term Government Bond
4. Corporate Deposits
5. SWP from Mutual Funds
6. Senior Citizen Saving Scheme

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May 20, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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