Banks and financial institutions provide
Fixed Deposit with monthly payout option. Such a monthly income scheme allows you to enjoy added flexibility of monthly payout. You may diversify your funds in various banks and high-ranking companies for making the most of your monthly income scheme. Fixed Deposits with monthly payout option is recommended for pensioners or senior citizens as the interest earned monthly can be another source of income for them.
Features of Fixed Deposits:
- Fixed Returns
- Regular payouts
- Low Risk on Investment
- Partial Withdrawal Allowed
- Loan against Fixed Deposits
Also Read: Fixed Deposit for your Child’s Future
Senior Citizen Savings Scheme
Senior Citizen Savings Scheme is for senior citizens of 60 years of age or above. This scheme can help them earn high returns with low risk involved. Senior citizens can invest in this scheme by visiting certified banks and post offices across the country. In this scheme, you can invest the money received as the retirement benefit. The maximum limit of investment under Senior Citizen Savings Scheme is Rs.15 lakh. You can invest Rs.15 lakh or the amount received on your retirement, whichever is lower.
Features of Senior Citizen Savings Scheme:
- Invest upto Rs.15 lakh
- Safe Investment Option (Backed by Indian Government)
- Tax benefit under Section 80C
- Nomination Facility Available
- Apply from any authorized bank or post office
Monthly Income Plan (MIP)
A Monthly Income Plan (MIP) is an alternative to Post Office Monthly Income Scheme and fixed deposits with monthly payout option. MIP is a monthly income mutual fund plan where a company provides investors and shareholders with a certain sum of money monthly on the basis of fund’s performance. MIP is debt oriented and generally categorized under the hybrid mutual fund. Unlike other monthly income schemes, this monthly income plan is moderately risk scheme and does not generate a fixed monthly income.
Features of Monthly Income Plan (MIP):
- Debt Oriented (Hybrid Mutual Fund)
- Moderate Risk Involved
- Earn Dividends (in case of profits)
- No Entry Load
- No Lock-in Period
Also Read: Types of Investments in India