{"id":6616,"date":"2021-06-23T09:51:00","date_gmt":"2021-06-23T04:21:00","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=6616"},"modified":"2021-06-23T15:07:19","modified_gmt":"2021-06-23T09:37:19","slug":"regular-income-investment","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/regular-income-investment\/","title":{"rendered":"11 Best Investments for Regular Income"},"content":{"rendered":"\n

There can be several situations when we look for regular income<\/strong><\/span>. This is especially true for people after retirement\u00a0without any pension. Also there would be new entrepreneurs who need regular income until their start-up stabilises. <\/p>\n\n\n\n

Why is regular income important?<\/h2>\n\n\n\n

Regular income is important as it gives a sense of security, a level of satisfaction that you need not worry about the future. You become less stressed if you know that you have a regular income to take care of your future expenses. It also disciplines your spending habits and helps in planning your next bit ticket purchases.<\/p>\n\n\n\n

Regular income becomes especially important for people who are retired from salaried job as they always had a regular income and hence have that habit of seeing money credited to their account every month. To maintain the same level of comfort after retirement or starting a new venture, we tell you\u00a011 investments which can generate regular income<\/strong> for you along with their pros and cons.<\/p>\n\n\n\n

Bank Fixed Deposit<\/h2>\n\n\n\n

This is the most popular investment avenue for regular cash flows. You can choose to get the interest credited in your savings account every month, quarter or annually.<\/p>\n\n\n\n

Expected Returns:<\/strong>\u00a03% to 7% for General Public and 3.5% to 7.5% 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 to invest and in most cases can be handled online.<\/li>
  2. The credit risk is very low especially in case of Government owned banks and large Private Banks. However investors should be careful about cooperative banks.<\/li>
  3. The income is guaranteed.<\/span><\/li><\/ol>\n\n\n\n

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

    1. The interest earned is taxable according to the income tax slab of the person<\/li>
    2. TDS (Tax deduction at source) is deducted by banks in case the annual interest income exceeds Rs 10,000. This is especially painful for people who do not have income in taxable range. However eligible individuals can submit Form 15G\/H prevent TDS deduction.<\/li>
    3. Reinvestment Risk \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.<\/span><\/li><\/ol>\n\n\n\n

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