Want a Regular Income on Investment? Invest in these 4 Avenues
By Anupama Deshpande | Feb 15, 2019

People invest their savings for getting good returns. The motive behind such investments can be different for different people. Some people invest to accomplish short term goal, some invest to meet their long term goals and some invest to get a regular income.

There are various instruments available in India where persons can invest their hard earned money. It solely depends upon the objectives, tenure, money available and risk appetite of the investors as to which instrument does he/ she select for the investment.

Though there are many attractive avenues, given below are 4 avenues for getting a regular income on your investment so if you want a regular income on investment, invest in these 4 avenues:

Suggested reading Fixed Deposit Interest Calculator

Fixed Deposit Accounts are those accounts in which a fixed sum of money is deposited for a specified time usually for a period from 7 days to 10 years. A higher interest rate is offered on fixed deposits which vary from bank to bank according to the amount deposited and duration of investment. Private sector banks and foreign banks offer higher rate of interest as compared to public sector bank in order to attract more deposits.

Interest Rate

Interest rate offered by banks on FDs ranges from 6% to 9% for General Public and 6.5% to 9.5% for Senior Citizens.

Suggested reading All Banks FD Rates for Senior Citizens for Different Tenures

India Post offers savings scheme to public where they can park their funds and earn good interest rate. The interest on post office monthly income scheme (MIS) account is payable monthly. POMIS can be opened by individuals via cheque or cash. Even a minor of 10 years and above age can also open this account. The maturity period of Post Office MIS account is 5 years.

Interest Rate

The post office MIS account offers an interest rate of 7.3 per cent per annum.

Premature Withdrawal

You can withdraw it prematurely but only after 1 year. If you withdraw it after 1 year but before 3 years then there will be a deduction of 2% from the deposit and if you withdraw it after 3 years then there will be a deduction of 1% from the deposit.

If you make an investment in real estate by buying a house and give it on rent then in that case you can also earn a regular income from the let out housing property.

It will keep increasing with lapse of time. The other benefit is that there will be a capital appreciation in the housing property which you will receive whenever you sell this property.

A reverse mortgage loan, introduced by the Union Government and introduced the National Housing Bank in May 2007, is the opposite of a conventional home loan. This is specially designed for senior citizens. The applicant should be a resident Indian and above 60 years of age. Further, the applicant should be the owner of a self- acquired, inherited or self occupied residential property.

In a reverse mortgage loan, a senior citizen mortgages his/ her house with the lender and receives a regular stream of income from a lender (a bank or a financial institution) against this mortgage of house.

This can be availed by those oldies that have a lack of regular income or financial support from children.

Suggested reading All about Senior Citizen Savings Scheme (SCSS)