1) Post office Monthly Income Scheme

Post Office schemes generally assure guaranteed returns on your investment. They are ideal for people who are looking for monthly income without bearing risk.

The interest rates applicable at the moment is 8.40 per cent per annum which is payable monthly. Government changes interest rate once in a year considering inflation and other appropriate parameters.

2) Bank Fixed Deposits (FD)

One of the popular investment avenues for most individuals is fixed deposits.

It provides promised returns and we do have the option to opt for interest payment. One can choose to opt for monthly, quarterly or reinvesting the interest.

3) Senior Citizen Savings Scheme

A senior citizen savings account can be opened with post office or any bank. Many banks also offer higher interest rates to senior citizen when compared to others.

The account can be opened by one who has attained age of 60 years (55 years for those who have retired on superannuation or under a voluntary or special voluntary scheme) or above on the date of opening of the account.

4) Long-term Bonds

Maturity of these bonds may range between 25-30 years. They tend to pay interest half yearly. Interest rate is changed frequently by the government. Government issue bonds to raise money from public.

5) SWP from Mutual Funds

One can invest in equity mutual funds or debt mutual fund and opt for Systematic Withdrawal Plan. This plan will liquidate some amount from mutual funds and credit it to your bank account.

Based on the risk factor one can make a decision to choose a debt or equity mutual fund.

6) Monthly Income plans of Mutual funds

Monthly Income Plans (MIPs) from Mutual Funds are largely for investors looking at steady monthly income, though they do offer a variety of options today.

7) Rent from Real Estate

If you own a land or second home and if you can rent it out, you can enjoy the monthly rent. Also, one can earn interest on security amount deposited by the tenant