All of us expect to have a stable flow of income every month by investing a lump sum amount into a financial product of some kind. If you think that the business or job you’re into is not stable, or you want to start making retirement plans, or even if you desire a steady flow of income each month, here are a few ways that can help you get a regular income every month!
Fixed Deposits: This is probably the most famous option that people go for. If you consider yourself to be a low risk taker, you can opt for the fixed deposit scheme. The interest rates depend on the term of the investment, but on an average, most banks do offer a rate of interest ranging from 7% to 8%. An important thing to remember here is that only when you submit a copy of your PAN card would the bank deduct a TDS of 10%, otherwise the deduction will be 20%. Fixed deposits can offer you monthly, quarterly or yearly returns too.
Post Office Monthly Income Scheme: Under this scheme, one can get guaranteed monthly income against the investment made. The returns are about 8%, and you keep getting them every month till the investment matures. Again, if your desire for risk is zero, this can very well be a part of your regular income plan. Post maturity, you receive the principal amount, as well as a 5% bonus. You can invest an upper limit of 4.5 lakhs in these accounts, and 9 lakhs if you have a joint account.
Monthly Income Plan of mutual funds: Some mutual funds have an innate structure of providing the investor with regular income. This is known as the Monthly Income Plan (MIP) and the amount you get in an MIP are called dividends. The dividends are tax free for the investors. The issue with an MIP is that the returns are not definite, and they keep changing in the range of 8% to 9% per annum.
Senior citizen saving scheme: As the name suggests, this scheme is meant for senior citizens only. An investment can be made by people above the age of 60 years. The investment can mature in 5 years, and can be extended up to 3 years. The rate of return for this scheme is 9% per annum.
Rent from real estate: The rental income obtained through real estate can be your regular income plantoo. Though the flow of income will be quite good, the downside of real estate is that you may not get good occupants, or it is possible that these occupants may not pay their rent on time. And most importantly, considering that it is a high maintenance asset, you will have to pay close attention to it.
Before investing in any of these options to obtain your regular income, try to understand what your risk appetite is, so that you can end up taking a decision that works out smoothly for you.
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Raghav Mehera Joined: January 6th, 2017 Articles Posted: 9
