Monthly income schemes (MIS) are a popular investment option for individuals looking for a steady cash flow. MIS schemes offer investors a fixed amount of income at regular intervals, making them a reliable source of passive income. In this article, we will discuss the best monthly income schemes in India and how they can help investors secure a steady cash flow.
What are Monthly Income Schemes?
Monthly income schemes (MIS) are fixed income investment options that offer a regular monthly income stream. These schemes invest in fixed-income securities such as bonds, debentures, and government securities, among others that generate income in the form of interest payouts. MIS is an excellent investment option for individuals looking for a steady cash flow for their daily expenses.
List of the Best Monthly Income Schemes in India:
Post office Monthly Income Scheme (POMIS):
The Post office Monthly Income Scheme is a government-backed investment option that offers a regular monthly income stream. The scheme’s tenure is five years, and the interest rate is fixed at 6.6% per annum, payable monthly. The investment amount ranges from Rs. 1,000 to Rs. 4.5 lakh for an individual account and Rs. 9 lakh for a joint account. POMIS is an excellent investment option for individuals looking for a steady cash flow for their daily expenses.
Pradhan Mantri Vaya Vandana Yojana (PMVVY):
The Pradhan Mantri Vaya Vandana Yojana is a government-backed fixed income investment option exclusively for senior citizens. The scheme’s tenure is ten years, and the interest rate is fixed at 7.4% per annum, payable monthly. The investment amount ranges from Rs. 1.5 lakh to Rs. 15 lakh, and investors can open the account at any authorised LIC agent. PMVVY is a safe and reliable investment option for senior citizens looking for a steady cash flow for their daily expenses.
LIC Jeevan Akshay VI:
LIC Jeevan Akshay VI is an immediate annuity plan that offers a regular income stream. The plan allows investors to choose the annuity payout option that best suits their financial needs. The annuity payout options include immediate annuity, deferred annuity, and fixed term annuity, among others. The investment amount ranges from Rs. 1 lakh to no maximum limit, and investors can select the annuity payout interval as monthly, quarterly, half-yearly, or annually. LIC Jeevan Akshay VI is an excellent investment option for investors looking for a steady cash flow and tax benefits.
Senior Citizen Savings Scheme (SCSS):
The Senior Citizen Savings Scheme is a government-backed fixed income investment option designed specifically for senior citizens. The scheme’s tenure is five years and offers a higher rate of return compared to other MIS options. The interest rate as of July 2021 is 7.4% per annum, payable quarterly. The investment amount ranges from Rs. 1,000 to Rs. 15 lakh, and investors can open the account at any authorised bank or post office. SCSS is a safe and reliable high return investment for senior citizens looking for a steady cash flow.
HDFC Life super income plan:
HDFC Life super income plan is a comprehensive monthly income plan that offers investors a regular income stream and protection benefits. The scheme’s tenure ranges from 16 to 20 years.
