Monthly income is undeniably the one thing we need, right? But if you have a significant quantity of spare cash, putting it in programs that provide consistent monthly income is a wonderful option. This guarantees that your idle funds begin to pay dividends or make earnings. This is probably leaving you wondering, what is the best investment for monthly income? This article covers this for you. Here you can find the best investment for monthly income in India.

What is the Significance of a Monthly Income Generating Scheme?

It is critical to understand the benefits connected with various types of investment schemes since different schemes are created with different investor types’ wants and requirements in mind. Individuals who are working and have a regular monthly paycheck should invest in plans that emphasize capital appreciation and growth strategies.

However, in order to fulfill their immediate financial needs post-retirement, one would also wish to engage in programs that give monthly returns.

The portfolio of investments for income production is very different from the portfolio of investments for capital appreciation. Income-generating schemes may not be popular with the great majority of investors since they do not produce big returns, but they do ensure a steady income in the future. These schemes’ passive income production leads to financial independence, which is their fundamental significance.

Here are Some of the Best Monthly Income plans in India

  1. The Senior Citizen Saving Scheme

A senior citizen savings plan (SCSS) is a wonderful investing choice if you are a senior citizen. It is backed by the government, and only senior people (over the age of 60) are permitted to invest. This service is available at certain bank branches and post offices. You must join the plan within one month after retiring. SCSS is offering an annual interest rate of 7.4 percent, payable weekly. It will be in place for five years. The SCSS allows you to invest up to Rs 15 lakh. The scheme’s interest, on the other hand, is added to taxable income and taxed according to your tax rate.

  1. The Post Office Scheme

India Post’s Post Office Monthly Income Scheme (POMIS) is a type of investment. Because it is backed by the government, it is a great investment choice for risk-averse individuals seeking consistent regular income. The POMIS is presently giving 6.6 percent annual interest, payable monthly. The deposit period for this plan is five years. Individuals can contribute up to Rs 4,50,000, while joint accounts can invest up to Rs 9,00,000. You may start investing in this plan with as little as Rs 1,500. When the POMIS investment matures, it can be reinvested for another five years.

  1. The Government Bond

For risk-averse investors, government bonds are a great low-risk investing choice. These bonds have maturities ranging from 5 to 40 years. Government bonds payout monthly interest or give coupon payments set by the Indian government. Government bonds have a fixed maturity date. The primary goal of issuing government bonds is to raise funds for government spending.

  1. A Corporate Deposit

Corporate deposits are available from a wide range of non-banking financial firms (NBFCs) and housing finance businesses (HFCs). These are comparable to bank deposits in that you invest with a corporate organization, but they are not as safe as a bank deposit. Corporate deposits pay a high-interest rate and provide additional flexibility that bank deposits do not. Before investing in corporate deposits, you should investigate the NBFC’s financial health and reputation, so make sure you look into it before you do it.

  1. A Monthly Income Plan

MIPs are mutual funds that invest mostly in fixed income and a minor percentage in equity and equity-related securities. The fund firms pay out a consistent income to their investors on a regular basis. This amount is not set and is determined by the fund’s performance. The returns are not guaranteed since mutual fund performance drives them. There is also the possibility of negative returns. As a result, before investing in a monthly income plan, you should examine your risk tolerance. Monthly income plans come in two flavors: growth and dividend. The MIP, on the other hand, declares dividends only if there are profits.

  1. Pradhan Mantri Vaya Vandana Yojana

This is a scheme that is specifically designed for senior citizens and to give them financial securities after their retirement. It provides an individual with a stable income to the senior citizens with fixed interest rates from 8% to 8.30% for a year. It also comes with a policy term of 10 years according to the payment mode that is chosen by the pensioner, and the annuity is paid on a monthly, quarterly, half-yearly, or yearly basis at the end of the policy term.


  1. Life Insurance Plus Saving

A guaranteed income insurance policy is another investment option for a consistent monthly income. These are life insurance plans that provide the investor with the option of receiving a predetermined monthly payout once the maturity period has passed. Life insurance combined with savings is an excellent method to guarantee your family’s future while also maintaining financial stability when you retire.


Finding the best investment for monthly income in India is not as hard as you think. But before you invest in any one of these schemes you might want to check up on their benefits and how they could be useful to you. Different people have different financial goals, and you have to come up with which plan would match these goals.