These schemes are tailored to different risk profiles and financial needs, offering regular payouts to ensure subtle income after retirement. This blog will simplify the concept of monthly income schemes and explore the best monthly income scheme available.
What are Monthly Income Schemes?
A monthly income scheme is a financial plan that assures investors a regular income at regular intervals, practically speaking, every month from their investment. It is most suited for retired individuals, homemakers, and low-risk appetite investors looking to generate a stable income to meet day-to-day expenses without liquidating the invested capital. The basic concept of a monthly income scheme is that it provides you with regular income so as to handle your fees without depending on the market but this business.
Types of Savings Schemes
India offers a wide variety of savings schemes that serve different financial goals and risk profiles. Let’s take a closer look at some of the most popular options:
- Post Office Monthly Income Scheme (POMIS)
The POMIS is one of the safest investment options. It is a government-funded product, which provides a fixed interest rate along with the honour of monthly payouts in rest. The scheme suits the best for conservative investors looking for a secure and stable income source. It is particularly suitable for retirees and those with low-risk appetites.
- Senior Citizen Savings Scheme (SCSS)
As evident from the title itself, the Senior Citizen Savings Scheme is made especially for citizens over 60 years of age. It offers a higher interest rate than most fixed deposit schemes, with quarterly interest payments. Senior citizens who seek a secure and stable source of income should definitely come forward. There is an option for consolidation and it comes with tax benefits as well under section 80C of the Income Tax Act.
- Fixed Deposits with Monthly Income Plans
With a monthly income plan of fixed deposits (FDs), the investors receive regular interest payouts. Most bank FDs are considered to be low risk, and the interest rates you receive could vary from one bank offering them another. It is a good option for people who want the security of bank FD but need regular income.
- Mutual Funds with Systematic Withdrawal Plans (SWP)
You can invest in mutual funds with SWP as it enables you to withdraw an amount at regular intervals, say monthly, from your investment. The balance of the corpus keeps growing, providing both income and capital appreciation. This is an ideal option for people with a moderate appetite risk as it provides the opportunity to earn higher returns than usual saving schemes.
How to Select the Best Monthly Income Scheme?
Here are three simple and effective steps to help you find the best saving and investment scheme online in India:
- Clarify Your Investment Purpose
Start by defining the purpose of your investment in terms of:
- The amount you plan to invest.
- The timeframe for when you expect to receive returns.
- Whether you require tax benefits on the invested amount.
- Shortlist Suitable Saving Schemes
Based on your investment amount and the time you have before you need the funds, shortlist the savings schemes that align with your goals. The aim should be to select a scheme that allows you to invest once and remain committed until you need the money.
- Maximise Growth Potential
Depending on your risk appetite and investment choices, you can opt for either equity-based or fixed-income (debt) schemes. If your goal includes tax saving, focus on the best saving schemes that provide tax benefits.
Best Monthly Income Scheme – Invest Today, Save Tomorrow
For ns who desire financial stability and security at the utmost core, having access to the best monthly income scheme is the path forward. So whether you are a retired individual or a housewife or wish to expand your investment portfolio, there is a savings scheme designed for you. After all, the best saving scheme is that which offers consistent returns.
If you’re ready to secure your financial future, consider exploring options from well-established providers in the industry. Some insurance providers, for instance, offer different savings schemes suitable for a range of financial needs. This is one big step towards financial security, and if you choose a reliable provider like Canara HSBC Life Insurance, you are sure to be in safe hands for the long run.
