{"id":11265,"date":"2021-07-01T10:18:00","date_gmt":"2021-07-01T04:48:00","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=11265"},"modified":"2021-07-01T14:04:39","modified_gmt":"2021-07-01T08:34:39","slug":"monthly-income","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/monthly-income\/","title":{"rendered":"11 Best Investments to get Monthly Income in India"},"content":{"rendered":"\n

Generating regular monthly income<\/strong><\/span> with low risk is a priority for many especially people who have retired or new entrepreneurs who need regular income until their business stabilises. In this post we list down 11 best investments which can help you generate your required monthly income with relatively low risk.<\/strong><\/span><\/p>\n\n\n\n

Monthly Income Scheme from Banks (SBI, ICICI, etc)<\/h2>\n\n\n\n

Monthly income schemes from banks are nothing but fixed deposit scheme where the interest is credited to savings account every month\/quarter.<\/strong> This is one of the most popular investment avenue for regular cash flows. In case required you can schedule the interest payout at monthly, quarterly or annual intervals.<\/p>\n\n\n\n

Expected Returns:<\/strong> 5% to 8% for General Public and 5.5% to 8.5% for Senior Citizens. This keeps on changing with interest rate cycle. <\/p>\n\n\n\n

The Good:<\/strong><\/span><\/p>\n\n\n\n

  1. It\u2019s convenient and easy to invest<\/strong> and in most cases can be handled online.<\/li>
  2. The credit risk is very low<\/strong> especially in case of Government owned banks and large Private Banks. However investors should be careful about cooperative banks.<\/strong><\/li>
  3. The income is guaranteed<\/strong> and does not change over the tenure of deposit.<\/span><\/li>
  4. In case of emergency loan\/overdraft<\/strong> up to 95% of the deposit can be taken.<\/li>
  5. Additional 0.25% to 0.8% interest rate for senior citizens<\/strong> and respective bank staffs<\/li><\/ol>\n\n\n\n

    The Bad:<\/strong><\/span><\/p>\n\n\n\n

    1. The interest earned is taxable<\/strong> according to the income tax slab of the person<\/li>
    2. TDS @ 10%<\/a><\/strong> is applicable if the annual interest paid is more than Rs 40,000.<\/a> However eligible individuals can submit Form 15G\/H avoid TDS<\/a>.<\/li>
    3. Reinvestment Risk<\/strong> <\/a>\u2013 For most banks, the maximum tenure of bank fixed deposit is 10 years. So after 10 years you cannot be sure of interest rates offered. It may be much lower than what you were actually getting.<\/li>
    4. There may be penalty on closure of account before maturity<\/strong>.<\/span><\/li><\/ol>\n\n\n\n

      Useful Tips:<\/strong><\/span><\/p>\n\n\n\n