Top 10 Best Schemes for Monthly Income in India (2025)

 In an unpredictable economy, having a stable monthly income isn’t just beneficial—it’s a necessity. Whether you're a retiree, a homemaker, a freelancer, or simply seeking passive income, finding dependable schemes for monthly income can provide the financial peace of mind you deserve.

Fortunately, India offers a wide range of monthly income schemes—from ultra-safe government-backed plans to investment options with higher returns. In this article, we’ll explore the top 10 best schemes for monthly income in India (2025) to help you make smart, informed choices.



1. Post Office Monthly Income Scheme (POMIS)

POMIS is a government-backed savings plan that provides fixed monthly income, making it ideal for risk-averse investors.

  • Interest Rate (2025): ~7.4% annually

  • Tenure: 5 years

  • Investment Limit: ₹9 lakh (single), ₹15 lakh (joint)

  • Taxation: Interest is taxable

Why choose it?
Guaranteed income with zero market risk and wide accessibility via India Post.

2. Senior Citizen Savings Scheme (SCSS)

Targeted toward retirees, SCSS offers high returns with complete safety.

  • Interest Rate: 8.2% p.a. (paid quarterly)

  • Eligibility: 60+ years

  • Maximum Investment: ₹30 lakh

  • Tax Benefits: Deduction under Section 80C

Why choose it?
It’s one of the highest-paying schemes for monthly income for senior citizens with sovereign security.

3. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Managed by LIC, this pension plan ensures senior citizens receive monthly payouts for 10 years.

  • Interest/Pension Rate: ~7.4%

  • Tenure: 10 years

  • Maximum Purchase Price: ₹15 lakh

  • Payout Options: Monthly/quarterly/half-yearly/yearly

Why choose it?
Offers a secure pension with government assurance and predictable returns.

4. Monthly Income Fixed Deposits (Bank FDs)

FDs with monthly interest payout are a popular choice for conservative investors.

  • Interest Rate: 6.5%–7.75%

  • Tenure: 1–10 years

  • Liquidity: Premature withdrawal (with penalty) available

Why choose it?
Safe and stable with minimal effort, ideal for regular income seekers.

5. Systematic Withdrawal Plan (SWP) – Mutual Funds

SWP allows investors to withdraw a fixed amount monthly from their mutual fund investments, offering flexibility and tax efficiency.

  • Best For: Lump-sum investors

  • Returns: Market-linked (varies 6%–10%)

  • Taxation: Only on gains withdrawn

Why choose it?
One of the most flexible schemes for monthly income, especially for those who want inflation-beating returns.

6. Monthly Income Plans (MIPs) – Mutual Funds

Though payouts aren't guaranteed, MIPs aim to provide regular income through dividend or withdrawal plans.

  • Asset Allocation: Mostly debt, some equity

  • Returns: 6%–9% (market-linked)

  • Payout: Monthly (if opted)

Why choose it?
Low- to medium-risk mutual fund with regular income potential.

7. Corporate Bonds with Monthly Interest

Top-rated corporate bonds or non-convertible debentures (NCDs) offer fixed monthly interest.

  • Returns: 7%–9.5%

  • Tenure: 1 to 10 years

  • Risk: Depends on issuer rating

Why choose it?
Higher returns than FDs with stable monthly payments for those with moderate risk appetite.

8. Annuity Plans from Life Insurance Providers

Insurance-based annuity plans provide guaranteed income for life or a fixed term.

  • Types: Immediate or deferred

  • Payout Options: Monthly, quarterly, annually

  • Returns: 5%–7% (fixed)

Why choose it?
Perfect for retirees seeking a no-risk, lifelong income solution.

9. Rental Income from Property

Real estate remains a classic way to earn monthly rental income, though it requires upfront capital.

  • Rental Yield: 3%–6%

  • Additional Benefit: Capital appreciation over time

  • Taxation: Income taxable with standard deductions

Why choose it?
Tangible asset that provides regular cash flow + asset growth.

10. National Pension System (NPS) + Annuity

A hybrid retirement savings product, NPS allows partial lump sum withdrawal at retirement and the rest is invested into an annuity to provide monthly income.

  • Returns: ~8%–10% (market-linked)

  • Tax Benefits: Sections 80C and 80CCD(1B)

  • Annuity Use: Buy post-retirement for monthly payouts

Why choose it?
Long-term retirement income tool with strong tax advantages and flexibility.

Comparison Table: Best Monthly Income Schemes in 2025

SchemeTypeRiskReturn (p.a.)Payout
POMISGovt SchemeVery Low~7.4%Monthly
SCSSGovt SchemeVery Low8.2%Quarterly
PMVVYPension PlanVery Low~7.4%Monthly
Monthly FDsBank DepositLow6.5%–7.75%Monthly
SWP – Mutual FundsMutual FundMedium6%–10%Monthly
MIPs – Mutual FundsHybrid Mutual FundMedium6%–9%Monthly
Corporate Bonds/NCDsDebt InstrumentMedium7%–9.5%Monthly
Insurance Annuity PlansInsurance ProductVery Low5%–7%Monthly
NPS + AnnuityRetirement ProductLow6%–10%Monthly
Rental IncomeReal EstateMedium3%–6%Monthly

How to Choose the Right Scheme?

When selecting the best schemes for monthly income, consider:

  • Risk Tolerance: Choose government schemes for safety; mutual funds for growth.

  • Investment Horizon: For short term, go with FDs; for long-term, consider NPS or annuities.

  • Tax Implications: Look into tax-saving schemes to improve net returns.

  • Liquidity Needs: Ensure your funds are accessible when required.

  • Age & Income Needs: Retirees may prefer SCSS and PMVVY, while young earners may go for mutual funds or rental income.

Conclusion

Having reliable schemes for monthly income helps maintain financial stability and manage day-to-day expenses with ease. From ultra-safe government plans like POMIS and SCSS to market-linked instruments like SWPs and corporate bonds, 2025 offers a wide range of options to suit every type of investor.

Your ideal income plan should balance security, return, and flexibility. Diversifying across 2–3 of these schemes can ensure both regular earnings and long-term financial growth.

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