If you want a regular monthly income, here are the best investment options based on safety, returns, and tax efficiency:
1️⃣ Senior Citizens’ Savings Scheme (SCSS) 🏦
✅ Best for: Retirees (60+ years) looking for a fixed, risk-free income
📈 Returns: ~8.2% per annum (quarterly interest payout)
📅 Lock-in: 5 years (extendable by 3 years)
💰 Maximum Investment: ₹30 lakh
📊 Tax Benefit: Section 80C deduction (interest is taxable)
🔒 Risk: Zero (Government-backed)
👉 Example: If you invest ₹10 lakh, you get ~₹6,833/month (before tax).
2️⃣ Monthly Income Scheme (MIS) – Post Office 📬
✅ Best for: Safe, fixed income with government backing
📈 Returns: 7.4% per annum (interest paid monthly)
📅 Lock-in: 5 years
💰 Maximum Investment: ₹9 lakh (joint account), ₹4.5 lakh (individual)
📊 Tax Benefit: No tax benefits (interest is taxable)
🔒 Risk: Zero risk
👉 Example: ₹5 lakh investment gives ~₹3,083/month.
3️⃣ Fixed Deposits (FDs) – Monthly Payout Option 💰
✅ Best for: Guaranteed fixed income with zero risk
📈 Returns: 6.5%-8.5% per annum (varies by bank)
📅 Lock-in: 6 months – 10 years
💰 Investment Limit: No limit
📊 Tax Benefit: 5-year tax-saving FD (Section 80C)
🔒 Risk: Zero (DICGC insurance up to ₹5 lakh)
👉 Example: ₹10 lakh FD at 8% gives ~₹6,667/month.
4️⃣ SWP (Systematic Withdrawal Plan) – Debt Mutual Funds 📊
✅ Best for: Higher returns than FD, but with some risk
📈 Returns: 7%-9% per annum
📅 Lock-in: No lock-in (recommended 3+ years for tax benefits)
📊 Tax Benefit: Capital Gains Tax (lower than FD interest tax)
🔒 Risk: Low (better than equity funds)
👉 Example: ₹10 lakh in a Debt Fund, withdrawing ₹7,000/month, while the remaining grows.
5️⃣ Dividend-Paying Mutual Funds 📈
✅ Best for: Market-linked monthly or quarterly income
📈 Returns: 8%-12% per annum (fluctuates with the market)
📅 Lock-in: No lock-in (recommended 3-5 years)
📊 Tax Benefit: Dividend is taxed as per income slab
🔒 Risk: Moderate (depends on market performance)
👉 Example: ₹10 lakh in a balanced fund can generate ₹6,000-₹10,000/month.
6️⃣ Rental Income (Real Estate Investment) 🏠
✅ Best for: Passive fixed income from property rental
📈 Returns: 3%-5% rental yield + appreciation
📅 Lock-in: Long-term investment
📊 Tax Benefit: Rental income taxable (after deductions)
🔒 Risk: Moderate (depends on location & demand)
👉 Example: A ₹50 lakh property could generate ₹15,000-₹25,000/month in rent.
7️⃣ Corporate Fixed Deposits (Company FDs) 🏢
✅ Best for: Higher returns than bank FDs
📈 Returns: 8%-10% per annum
📅 Lock-in: 1-5 years
📊 Tax Benefit: No tax benefits
🔒 Risk: Moderate (choose AAA-rated companies)
👉 Example: ₹10 lakh FD at 9% gives ~₹7,500/month.
8️⃣ Government Bonds (RBI Floating Rate Bonds) 🏛
✅ Best for: Fixed income, but payout is bi-annual
📈 Returns: ~8.05% (linked to NSC rate)
📅 Lock-in: 7 years
📊 Tax Benefit: No tax benefit (interest is taxable)
🔒 Risk: Zero (Government-backed)
👉 Example: ₹10 lakh in bonds earns ₹40,250 every 6 months.
📌 Best Investment Option Based on Your Needs
✔ For highest safety & fixed income: SCSS, MIS, FD
✔ For better returns than FD: Debt Mutual Funds, SWP, Corporate FD
✔ For passive income: Rental Property, Dividend Stocks
✔ For long-term growth with withdrawals: Mutual Funds SWP
