Whether you are thinking about monthly income plans for retirement. Or you want to get monthly income due to job insecurity for safety. Or you need additional income. Or for any other reason you want to invest in monthly income plans.
So in this video we will discuss about 5 best Monthly income plans. Which asset class has a little more risk or which one is more safe. We will discuss all this. If we talk about the First plan then, It is.
- Post Office Monthly Income Scheme
This is considered one of the best plan because it has the backup of the government.
Currently the current interest rate in Post Office Monthly plan is 7.4% annually.
And a maximum of 9 lakh can be invested in this plan, for a single account.
And for joint account, maximum investment of Rs 15 lakh can be made in this plan.
On an amount of 9 lakhs/ at the rate of 7.4% yearly, you will get interest of Rs 5,550 every month
And for 15 lakhs, you will get interest of Rs 9,250/-
So if you have 15 lakhs available with you, then you can earn an income of 9250 rupees every month.
But remember that even if you open your account in different post offices, you will be allowed to invest a maximum of 15 lakhs for a joint account and 9 lakhs for a single account.
And this plan is for 5 years only. Your account will be closed after 5 years.
Then after 5 years, if you want, you can extend this plan. But whatever interest rates will be applicable at that time, that will be applicable to you.
And You cannot withdraw the deposited amount for 1 year.
If anyone want to withdraw it between 1 to 3 years, then a deduction charge of 2% will be levied on the principal amount.
And if you want to close it within 3 to 5 years, then a deduction charge of 1% will be levied.
2. And there are more benefits for senior citizens in this plan.
If someone’s age is 60 plus, then they will get interest rate of 8.2% per annum in Senior Citizens Savings Scheme Account.
And in this plan maximum amount of Rs 30 lakh is allowed.
But you will not get interest every month in this plan. You will get interest quarterly.
If you deposit an amount of Rs 9 lakh, then at the rate of 8.2% annually, you will get an interest amount of Rs 18,450 quarterly
In this plan, you can open both single and joint account.
And Senior Citizens Savings account will also be closed after 5 years. But you can extend it for another 3 years.
But within one year of maturity period you will have to submit the application for extending it in the post office.
3. Monthly income plan is BANK FDS
For many years FDs have been considered one of the best options.
Now, the small finance banks among the banks provide you higher interest rates, as compare with ICICI bank, HDFC bank and many more.
At present, the highest interest rate is available in Suryoday small finance bank which is 8.4%. If you keep FD in it for 2 years and 6 months.
And the interest rate is 8.25% for 1 year 6 months. In this FD lock in period is 7 days, in which early withdrawal option is also available. And in this FD you will keep getting interest every quarterly,
Suppose if you make an FD of Rs 9 lakh, at 8.4% interest rate, then you will get interest of Rs 18,900 every 3 months.
But remember that only amount up to Rs 5 lakh is insured in bank FD. By DICGC which is a RBI owned company. So. for safety you can FD an amount up to Rs 5 lakh. If you want to do FD of a bigger amount then you can do FD of Rs. 5 lakh each in different banks Or you can also get it done in the name of another family member.
And interest rate in Shivalik Small Finance Bank is 8.3%. If you make FD for 1 year 6 months. The interest rate for 2 years is also 8.3%.
The interest rate is 8.05% for 1 year and 1 month, so quite good interest rates are available in this bank, and for senior citizens the interest rate is a bit higher. In these FDs there is a lock in period of 7 days, you can easily withdraw the amount after 7 days.
Apart from that, we also get to see the option of non-bank FD Like Shriram Finance Company or Bajaj Finance Company.
These companies also provide good interest rates. For example, the interest rate in SHRIRAM FINANCE is 8.09% for 3 years and 5 years. And for 1 year you get to see the interest rate of 7.39%. And you will keep getting interest amount every month in Shriram Finance company
There is only one risk in non-bank FDS as these FDS are not insured by DICGC.
If Suppose these companies may close down tomorrow, you will not get the cover of Rs 5 lakh which we get in banks. That is why banks are considered a good option for FDs.
4. Systematic Withdrawal Plan i.e. (SWP)
This is part of a mutual fund investment.
If you invest in mutual funds, then you get the option of a systematic withdrawal plan. Understand that if you have invested Rs 6 lakh in some fund.
And that fund gives you 13% returns annually. And you want to withdraw Rs. 4000 every month from that fund for the next 5 years. So, your withdrawal amount for 5 years is Rs 2 40,000. And your final value is Rs 7,76,283.
And if your fund is able to give a little more returns, then the final value can be even higher. But there is some risk in SWP because it is linked to the market. If there is a bull run in the market, then there is no problem in withdrawing money every month But if the market is in a downtrend or the market performs very slowly for several months. So in such case, SWP cannot be good.
So during bad times in the market, for safety you can reduce the amount of SWP. Or you can stop SWP for a few months. Until the market becomes positive. So while considering SWP you should also consider market risk.
5. Pradhan Mantri Vaya Vandana Yojana
One can invest in this plan through LIC. If you see the details of this plan. then this is only for senior citizens whose age is more than 60 years. And if someone is an army retired person then their age criteria is 55 years plus.
The annual interest in this plan is 8%. And this plan is for 10 years. There is a lock in period of 10 years. So you cannot withdraw the principal amount before 10 years. You will keep getting interest amount every month on your investment for 10 years.
Suppose you deposit 6 lakhs in this plan. Then you will get an interest rate of 4,000 rupees every month. And in this plan maximum investment of Rs 15 lakh is allowed.
So, these are some monthly income plans which I have discussed. You can tell me your opinions in the comments section.