🏦 Best Monthly Income Schemes in India 2025 – Secure Your Future with Steady Returns
Are you looking for a safe way to earn regular income every month without taking big risks? Whether you're a retiree, a homemaker, or just someone who wants to supplement your salary with an extra income stream, Monthly Income Schemes (MIS) are a great option.
In this blog post, we’ll explore the best monthly income plans in India for 2025, covering government-backed options, bank FDs, mutual fund plans, and even rental income ideas.
🔹 What is a Monthly Income Scheme?
A Monthly Income Scheme is a financial product that provides fixed or regular payouts (usually monthly) in the form of interest or dividends. These are low to moderate risk investments that prioritize capital safety and stable income over high returns.
✅ Top Monthly Income Schemes in India – 2025
Let’s break down the most popular and reliable options one by one:
1. 🧓 Senior Citizens Savings Scheme (SCSS)
Best for: Retired individuals aged 60 and above
Interest Rate: ~8.2% per annum (as per Q1 FY 2025)
Payout: Quarterly (can be used for monthly needs)
Lock-in Period: 5 years (extendable by 3 years)
Investment Limit: ₹30 lakh per person (post-April 2023 update)
Tax Benefits: Section 80C deduction up to ₹1.5 lakh
Why choose SCSS?
This is one of the most secure and high-interest options for senior citizens. The scheme is backed by the Government of India and offers better returns than bank FDs.
2. 🏣 Post Office Monthly Income Scheme (POMIS)
Best for: Risk-averse investors of all ages
Interest Rate: ~7.4% per annum (paid monthly)
Tenure: 5 years
Investment Limit: ₹9 lakh (single), ₹15 lakh (joint)
Taxation: No 80C benefit; interest is taxable
Why POMIS?
It’s a simple scheme where you invest a lump sum and get monthly interest straight to your savings account. Perfect for low-risk investors who want predictable monthly cash flow.
3. 🏦 Monthly Income Fixed Deposits from Banks
Best for: Those who prefer dealing with banks
Interest Rate: 6.5% to 7.5% (varies by bank and tenure)
Tenure: Flexible from 6 months to 10 years
Payout Mode: Choose monthly interest payout
Taxation: Interest taxable; TDS if income > ₹40,000/year
Top Banks Offering Monthly Payout FDs:
HDFC Bank
ICICI Bank
SBI
Axis Bank
IDFC First Bank
Why bank FDs?
If you already have a savings account, setting up a monthly income FD is super easy. It’s safe, transparent, and doesn’t require much paperwork.
4. 📈 Mutual Fund Monthly Income Plans (MIPs)
Best for: Investors with moderate risk tolerance
Returns: 7% – 10% (not fixed, market-linked)
Type: Hybrid mutual funds (mostly debt, some equity)
Payout Option: Monthly dividends or Systematic Withdrawal Plan (SWP)
Taxation: LTCG after 3 years with indexation benefit
Popular Funds (check latest ratings before investing):
HDFC Hybrid Debt Fund
ICICI Prudential Regular Savings Fund
Aditya Birla Sun Life MIP
Why choose MIPs?
If you want better returns than FDs and can handle small market fluctuations, this is a good option. Over time, SWP from a debt mutual fund can offer tax efficiency and higher real returns.
5. 🏢 Corporate Fixed Deposits (NBFCs)
Best for: Those seeking higher returns with slightly more risk
Interest Rate: 7.5% to 9% (monthly payout option available)
Tenure: 1 to 5 years
Companies: Bajaj Finance, Shriram Finance, Mahindra Finance
Taxation: Interest is taxable
Risk Tip: Always invest in AAA-rated companies and limit exposure to 10–15% of your portfolio.
Why corporate FDs?
Higher returns than banks, with flexible payout options. Just make sure you check credit ratings and company reputation before investing.
6. 🏠 Rental Income & Real Estate Investment Trusts (REITs)
Best for: Investors with high capital and long-term goals
Rental Yield: 2%–5% annually + capital appreciation
REITs Returns: 6%–8% (dividends + growth)
Liquidity: REITs are more liquid than real estate
Taxation: Rental income and REIT dividends are taxable
Why real estate?
If you own property in a metro city, you can earn steady rental income. Or, invest in REITs like Embassy REIT, Mindspace REIT to enjoy regular dividend-like income without managing tenants.
📊 Easy Comparison: Best Monthly Income Options in 2025
Confused about which monthly income scheme is best for you? Here's a simple breakdown to help you choose based on returns, safety, and who it suits best:
1️⃣ Senior Citizens Savings Scheme (SCSS)
💸 Returns: Around 8.2% yearly (paid every quarter)
🔐 Risk: Very low – backed by the government
💧 Liquidity: Low – locked in for 5 years
👵 Best For: Senior citizens who want safe, steady income
2️⃣ Post Office Monthly Income Scheme (POMIS)
💸 Returns: About 7.4% yearly (paid monthly)
🔐 Risk: Very low – Post Office is government-run
💧 Liquidity: Low – funds are locked for 5 years
👨👩👧 Best For: Safe investors who don’t want any risk
3️⃣ Bank Fixed Deposit (Monthly Payout)
💸 Returns: Between 6.5% and 7.5% depending on the bank
🔐 Risk: Low – safe in top-rated banks
💧 Liquidity: Medium – early withdrawal is possible with penalty
🏦 Best For: Regular investors who want stable monthly income
4️⃣ Mutual Fund Monthly Income Plans (MIPs)
💸 Returns: 7% to 10% (can go up or down)
🔐Risk: Medium – linked to the market
💧 Liquidity: High – you can redeem anytime
📈 Best For: Those comfortable with some risk for higher gains
5️⃣ Corporate Fixed Deposits
💸 Returns: Between 7.5% and 9%
🔐 Risk: Medium – depends on company’s credit rating
💧 Liquidity: Medium – fixed term but can be broken early in some cases
💼 Best For: People who want better returns than banks and can take a little more risk
6️⃣ Rental Income or REITs
💸 Returns: 6% to 8% yearly
🔐 Risk: Medium – depends on property and market
💧 Liquidity: Medium – REITs are easier to sell than property
🏠 Best For: People with real estate or those looking for passive income
📝 In Short:
Want safety? 👉 Go for SCSS or POMIS
Want better returns? 👉 Try Mutual Funds or Corporate FDs
Want passive income? 👉 Consider REITs or Rental property
Want a balanced option? 👉 Bank FDs work for all age groups
📝 Key Factors Before Choosing a Monthly Income Plan
✅ Goal Clarity: Are you looking for retirement income, side income, or stability?
✅ Risk Tolerance: Can you handle market ups and downs or prefer fixed returns?
✅ Tax Efficiency: Look for options with tax benefits or use SWP from debt funds.
✅ Liquidity Needs: How soon might you need the money?
✅ Diversification: Don’t put all your money in one scheme. Mix secure and growth-oriented options.
🧠 Final Thoughts: Which Monthly Income Scheme is Right for You?
Here’s a quick guide:
👵 Retired? Go with SCSS or POMIS for guaranteed income.
💼 Working professional? Use Bank FDs or Debt Mutual Funds (SWP) for a side income.
📈 Can handle risk? Try Mutual Fund MIPs or REITs for higher returns.
💰 Looking for more income? Explore AAA-rated Corporate FDs.
🔗 Conclusion
Earning a stable monthly income doesn't have to be risky or complicated. Whether you want complete safety or slightly higher returns, India offers many well-structured schemes in 2025 that can meet your needs. Evaluate your goals, check the latest interest rates, and start investing smartly today!
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📌 For more such financial insights, visit IndiaInvest.in
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