Friends, if you’re wondering how to invest your money so you can earn a little extra every month, and without significant risk, then this post is perfect for you!
The market fluctuates these days, but there are some safe options that offer small returns every month. Let’s explain in simple terms which plans you can invest in, how much you can expect to earn, and what to keep in mind!
1. Post Office Monthly Income Scheme (POMIS)
This is a government scheme, meaning it’s 100% safe!
How does it work? Invest once, and earn interest every month.
How much return? Currently 7.4% per year (₹61.67 per ₹10,000 per month).
How much can you invest? Minimum ₹1,000, maximum ₹9 lakh (single), ₹15 lakh (joint).
Time? Locked for 5 years, but money comes in every month.
Best for? Those who want absolutely zero risk and regular income.
2. Bank Fixed Deposit (FD) with Monthly Interest
Every bank has this option – lock in money, earn interest every month!
Return? 6.5% to 7.5% (senior citizens get 0.5% extra).
Example: Invest ₹1 lakh at 7% → you’ll get ₹583 per month.
Time? You can choose from 1 year to 5 years.
Safe? Yes, up to ₹5 lakh is insured with DICGC.
Tip: Smaller banks offer higher interest rates, but choose a larger bank for safety.
3. Senior Citizen Savings Scheme (SCSS) – If you’re 60+
If your parents or grandparents are over 60, this is the best option!
Return: 8.2% per year (safest option).
Limit: Up to ₹30 lakh can be invested.
Monthly? Yes, interest is paid quarterly, but you can also arrange monthly.
Lock-in: 5 years, but you can withdraw in case of emergency.
Tax? Interest is taxable, but you can get a deduction of up to ₹1.5 lakh under Section 80C.
4. Debt Mutual Funds (Monthly Dividend Plans)
These funds invest in government bonds or company bonds – very low risk!
Return: 6% to 8% per year (slight up-down depending on the market).
How to get it? Some funds pay a monthly dividend.
Best funds: HDFC Short Term Debt, ICICI Prudential Savings Fund.
Risk? Very low, but slightly more than an FD.
Tip: Do a SIP and SWP (Systematic Withdrawal Plan) – you can withdraw a fixed amount every month.
5. Government Bonds (RBI Floating Rate Bonds)
The RBI itself issues them – what could be safer?
Return: NSC rate + 0.35% (currently ~7.35%, changes every 6 months).
Time: 7-year lock-in.
Payout: Interest is paid every 6 months.
Minimum amount: Starting at ₹1,000.
Best for: Those who want a slightly flexible rate and a safe plan for the long term.
6. Corporate Fixed Deposits (Safe Companies)
Large companies like Bajaj Finance and Mahindra Finance offer FDs.
Return: 7.5% to 8.5% (higher than banks).
Risk? Slightly higher, but CRISIL AAA-rated deposits are safer.
Payout: You can choose between monthly, quarterly, or at the end of the year.
Tip: Invest up to ₹5 lakh in one company for safety.
How Much Money Should You Invest? A Simple Plan
| Ten Thousands of Budget | Where to invest | You’ll earn every month |
|---|---|---|
| ₹50,000 | POMIS | ₹308 |
| ₹1 lakh | Bank FD | ₹583 |
| ₹2 lakh | SCSS (if eligible) | ₹1,366 |
| ₹3 lakh | Debt Fund SWP | ₹1,500-1,800 |
Things to Keep in Mind
- Tax: Interest is taxable (depending on your slab).
- Inflation: 7% return, but inflation is 6%, so the real profit is only 1%.
- Emergency: If you have a lock-in in an FD or POMIS, keep some liquid cash aside.
- Diversify: Put all your money in one place – some FD, some POMIS, some debt funds.
| Options | Return (approx) | Risk | Lock-in | Max Limit |
|---|---|---|---|---|
| POMIS | 7.4% | Zero | 5 years | ₹9 lakh |
| Bank FD | 6.5-7.5% | Very low | 1-5 years | No limit |
| SCSS | 8.2% | Zero | 5 years | ₹30 lakh |
| Debt Funds | 6-8% | Low | None | No limit |
| RBI Bonds | ~7.35% | Zero | 7 years | No limit |
Pros and Cons
Pros:
- Every month fixed income – tension free!
- Government or bank backed – money safe.
- Extra returns for senior citizens.
- You can start with a small amount.
Cons:
- Returns are lower than the stock market.
- Interest is taxed.
- You can’t withdraw money during the lock-in period.
- Inflation may cause a small loss.
Conclusion
If you need a stable monthly income without significant risk, POMIS, Bank FDs, or SCSS are best. For slightly higher returns, you can try debt funds or AAA corporate FDs.
Create a mix based on your budget and watch your money grow! Tell us in the comments – where will you invest your money and why? And yes, don’t forget to check these plans on Flipkart or your bank app!
