Planning for a stable financial future requires careful thought about the right investment options. In a study conducted by the National Pension Scheme (NPS), it has been established that around 60% of Indians prefer fixed-income schemes like FDs and POMIS, citing low risk as a primary factor, making them the leading choices for generating monthly incomes. Several plans claim to provide a safe and sound monthly income by 2025, and it is the right selection that will make all the difference in your financial stability if you are managing a much larger financial obligation like a 20 lakh personal loan.
Post Office Monthly Income Scheme
The POMIS is among the most reliable sources for earning fixed monthly returns. With guaranteed returns and minimal risk, many conservative investors find it their go-to choice.
| Deposit Amount | Interest Rate | Monthly Income | Tenure |
| ₹1,000 | 7.4% p.a. | ₹7.40 | 5 years |
| ₹10,000 | 7.4% p.a. | ₹74.00 | 5 years |
| ₹1,00,000 | 7.4% p.a. | ₹740.00 | 5 years |
Key Features:
- Safe and government-backed.
- No market risk.
- Tax benefits under Section 80C.
Senior Citizens Savings Scheme (SCSS)
If you are a senior citizen, this scheme offers a high interest rate with regular monthly payouts. It is a government-backed scheme designed to provide a secured income for people over 60.
| Deposit Amount | Interest Rate | Monthly Income | Tenure |
| ₹1,00,000 | 8% p.a. | ₹666.67 | 5 years |
| ₹5,00,000 | 8% p.a. | ₹3,333.33 | 5 years |
Key Features:
- Attractive interest rates for seniors.
- Quarterly payout, which can be used for monthly expenses.
- Tax benefits under Section 80C.
Fixed Deposit with Monthly Income Option
Many banks and financial institutions offer Fixed Deposits (FD) with a monthly income option. This scheme is widely known for its stability and safety, especially when offered by trusted banks.
Read More :- Indian Bank Net Banking
| Deposit Amount | Interest Rate | Monthly Income | Tenure |
| ₹1,00,000 | 7% p.a. | ₹583.33 | 5 years |
| ₹5,00,000 | 7% p.a. | ₹2,916.67 | 5 years |
Key Features:
- Low-risk, stable income.
- Flexible tenure options (1-5 years).
- Premature withdrawal options, though at a penalty.
Mutual Funds – Monthly Income Plans (MIPs)
Monthly income plans for mutual funds could be a good alternative if one accepts a slightly higher risk to achieve potentially higher returns. Such funds invest in debt and equity for a steady income and potential capital appreciation.
| Investment Amount | Expected Returns | Monthly Income | Risk Level |
| ₹1,00,000 | 6-8% p.a. | ₹500-₹700 | Moderate |
| ₹5,00,000 | 6-8% p.a. | ₹2,500-₹3,500 | Moderate |
Key Features:
- Higher returns than traditional options.
- Market-linked returns, so returns are not guaranteed.
- Tax-efficient as long-term capital gains are taxed at lower rates.
Tip: Review the performance of a fund of MIPs and then adjust your investment based on market conditions while investing in MIPs. Such an approach proactively helps maximise returns and reduces the impact of a market downturn.
RBI Savings Bond
The RBI Savings Bond is an excellent low-risk investment that guarantees returns, making it an attractive investment opportunity. It offers a fixed rate of interest, paid semi-annually, which you can easily convert into a monthly income.
| Deposit Amount | Interest Rate | Monthly Income | Tenure |
| ₹10,000 | 7.75% p.a. | ₹62.92 | 7 years |
Key Features:
- Government-backed security.
- Safe, with fixed returns.
- No market risk.
Practical Tip: Start Small, Grow Gradually
One important tip is to start with a smaller investment if you’re unsure about these schemes. Gradually increase your investment as you become more comfortable and confident. This way, you minimise the risk while still earning monthly income.
Also Read :- DCB Net Banking
Conclusion
In 2025, the best monthly income schemes can cater to your appetite for risk and your objectives for meeting your financial requirements. One can opt for a safe return with POMIS or seek the best risk-return balance in MIPs. First and foremost, it’s a process of determining what is financially required, your ability to take risks, and your investment horizon before opting for an appropriate scheme.
Frequently Asked Questions
Q. What is the best monthly income scheme for 2025?
The best schemes include fixed deposits, post office schemes, and MIPs.
Q. Are monthly income schemes risk-free?
Some schemes, like post office schemes and FDs, are low risk. Others, like MIPs, carry a moderate risk.
Q. Can I invest in monthly income schemes with a personal loan?
Yes, but be sure that you have manageable loan repayments.