For those who are retired or looking at regular income, the best bet would be some of the monthly income plans. Some folks who are retired in particular would like to maximize their returns. Here are 4 monthly income plans for individuals, who are looking at decent returns as well as safety.
Bajaj Finance monthly income Fds
The Bajaj Finance fixed deposits are good if you are looking at monthly interest income. A 36-month to 60-month deposit, fetches you an interest income of 7.81 per cent, which is not bad at all. In fact, it is way higher than what commercial banks in the country offer you.
The deposits are also safe, as they are AAA rated, which make them a good investment. You can get 0.10 per cent extra, if you renew your deposit. Also, certain category of investors like senior citizens are entitled to a bit extra on the deposits.
You can invest for a period of 24 to 35 months as well, but, here the monthly interest would be lower as the annual interest stands reduced to 7.61 per cent.
Post Office Monthly Income Plan
The interest rate on the post office monthly income plan is 7.6 per cent per annum, payable monthly. One can invest in multiples of Rs 100. However, there is a limit that has been fixed and hence in an individual account you can invest Rs 4.5 lakhs, while in a joint account one can invest Rs 9 lakhs.
The account can also be transferred from one post office to the other and there is a nomination facility that is available. It is also important to remember that the interest earned is fully taxable, so plan accordingly. Since this is backed by the government there is a high level of safety.
Mahindra Finance Fixed deposits
Mahindra Finance interest rates are the highest when compared to the above two mentioned. The company offers an interest rate of 7.95 per cent per annum payable monthly on deposits of 33-months. Even a 4-month deposit offers a similar interest rate.
If you are looking at a reduced tenure of 15-months or 20 months the interest rate offered is 7.35 per cent. The deposits are rated FAAA by Crisil, which indicates a very high level of safety.
The interest rate of Mahindra Finance are pretty decent and hence one can invest in the same. Apart from this, interest rates in the economy are falling and hence investors can look to invest for a slightly longer term tenure.
Monthly Income Plans of a mutual fund
There are many mutual fund schemes that offer you monthly income. However, the returns are never assured nor guaranteed. For example, in all of the above examples, we have mentioned a definite interest rate. However, we cannot mention the same for monthly income plans of a mutual fund, since the same depends on returns from the fund.
Mutual funds themselves are risky and hence if you are a retired individual, this may not be the best option for regular monthly income. All of the above mentioned monthly income investment ideas are fully taxable on receiving the income.