There are various stages in life, which demands guaranteed income at regular intervals. The most common phases are the retirement of a senior citizen or start-up venture after leaving the job. Both such instances, if investment options are chosen correctly then you have know about all guidelines about investment, it can add golden moments to one`s life. One has to ensure regular income which is independent of external factors.
Most monthly income options with higher rates of interest income are meant for senior citizens who can have an opportunity to earn reasonably higher returns without any fluctuations. There are also other investment options which are open to every citizen, irrespective of their age.
Fixed Deposit:
FDis an all-weather friend of any investors because of reasons like no upper limit of investment, flexible tenure, flexible interest payout, secure investment and easy withdrawals. However, the point to consider here is safety. While one needs regular income, the safety of principle cannot be compromised. While a nationalized bank gives better protection, it lacks very less interest payout.
There are NBFCs like PNB Housing, that offers AAA grade investment options from CRISILthat ensure the highest safety to investors. You can check out higher rates for Fixed Deposit ( FD) provided by PNB Housing here. You can also use FD calculator to know your monthly interest income by entering the rate of interest and investment amount.
Pradhan Mantri Vay Vandna Yojna (PMVVY)
This scheme was introduced by the central government with an objective to protect senior citizens from falling interest rates and rising inflation scenario. In this scheme, any senior citizen with aged 60 or above, can invest an amount up to Rs. 15 Lacs to earn regular income. The rate of interest is 8.3 percent per annum. The senior citizen will have an option to select an income period as monthly, quarterly, half-yearly or yearly. The lock-in period of investment is ten years; however, in case of emergency, the fund can be accessed earlier as well, with a nominal fee. The scheme is implemented through country`s leading government insurance agency LIC (Life Insurance Corporation) of India. One can visit any LIC branch and open the account.
Senior Citizen Saving Scheme (SCSS)
This scheme is also exclusively for senior citizens, who want to ensure regular income without any risk. The interest rate is the same as PMVVY; however, here one cannot have a choice of income period. The interest is only paid at the end of each quarter. Hence, one needs little planning for three months, instead of one month. The best part is accessibility. While PMVVY is only offered through LIC, SCSS is available at all branches of the post office and with leading banks as well. The investment period is also relatively flexible, with an initial five year lock-in period and the option to extend the account for a further three years. One can invest maximum Rs. 15 lacs in this scheme.
Mutual Funds
Nowadays all mutual funds offer the scheme with a fixed monthly income. These plans are called SWP (Systematic Withdrawal Plans). Under this plan, every month fixed amount is withdrawn from the fund house and credited to the investor`s bank account. The catch point is, if market returns are not sufficient to give fixed income, balance portion is withdrawn from the capital amount. Hence, under the low-interest rate scenario, one may end up losing part of its capital. The option is only suited if you want to re-invest lump sum amount in a systematic way like SIP.
