For most middle-class families in India, managing monthly expenses, savings, and emergencies can be challenging. That’s why many people prefer Monthly Income Schemes (MIS)—investment plans that give a fixed, reliable monthly payout. These schemes are safe, government-backed (in many cases), and ideal for people who want stable income without high risk.
In this detailed guide, we will explain the best monthly income schemes in India, their benefits, interest rates, eligibility, and how you can start even with small amounts.
Why Monthly Income Schemes Are Popular Among Middle-Class Families
Monthly income plans are ideal because they provide:
- A steady monthly payout
- Low risk or guaranteed returns
- Suitable for senior citizens, salaried people, and self-employed
- Help maintain financial stability
- Perfect for long-term financial planning
These schemes help meet routine expenses such as rent, grocery, electricity, school fees, and medical bills.
Top 7 Best Monthly Income Schemes in India (2025)
Below is a quick comparison table of the most reliable and popular monthly income schemes:
Monthly Income Schemes Comparison Table (2025)
| Scheme Name | Best For | Interest Rate / Return | Lock-in / Tenure | Risk Level |
| Post Office Monthly Income Scheme (POMIS) | Families, seniors | ~7.4% | 5 years | Very Low |
| Senior Citizens Savings Scheme (SCSS) | 60+ age group | ~8.2% | 5 years | Very Low |
| Monthly Income Mutual Funds | Medium-risk takers | 10–14% returns (approx.) | No lock-in | Medium |
| Fixed Deposit (Monthly Payout FD) | Safe investors | 6–8% | Flexible 1–10 years | Low |
| Pradhan Mantri Vaya Vandana Yojana (PMVVY) | Senior citizens | ~7.4% | 10 years | Very Low |
| Rental Income (Real Estate) | Long-term planners | Variable (3–6% net) | Long-term | Medium |
| Corporate Bonds / NCDs | Investors wanting higher returns | 8–10% | 1–5 years | Medium |
Post Office Monthly Income Scheme (POMIS)
A government-backed, extremely safe monthly income plan.
Features
- Minimum investment: ₹1,000
- Maximum for individuals: ₹9 lakh
- Maximum for joint accounts: ₹15 lakh
- Guaranteed monthly interest payout
Benefits
- Very safe (government-backed)
- Higher interest compared to savings accounts
- Ideal for retirees or families needing stability
Drawbacks
- Cannot withdraw before 1 year
- Lower returns compared to mutual funds
Who Should Choose?
Middle-class families seeking zero-risk monthly income.
Senior Citizens Savings Scheme (SCSS)
Designed exclusively for senior citizens aged 60+, SCSS offers one of the highest guaranteed returns in India.
Features
- Interest: ~8.2%
- Tenure: 5 years (extendable by 3 years)
- Quarterly payouts
Benefits
- High interest rate
- Government-backed security
- Good for post-retirement planning
Drawbacks
- Only for senior citizens
- Interest is taxable
Who Should Choose?
Parents or grandparents looking for safe retirement income.
Monthly Income Mutual Funds (MIPs)
These are hybrid mutual funds that invest in debt + equity to generate monthly payouts.
Expected Returns
10–14% annually (depending on market conditions)
Benefits
- Higher returns than FD or POMIS
- No lock-in, you can redeem anytime
- Ideal for long-term wealth growth
Drawbacks
- Returns are not guaranteed
- Risk is higher than government schemes
Who Should Choose?
Families willing to take moderate risk for higher monthly income.
Monthly Payout Fixed Deposits (FDs)
Banks offer FDs where interest is credited monthly instead of at maturity.
Features
- Tenure: 1 to 10 years
- Interest: 6–8% depending on the bank
- Safe, low-risk investment
Benefits
- Fixed, predictable monthly income
- Suitable for long-term planning
- Senior citizens get higher interest
Drawbacks
- Penalty on premature withdrawal
- Interest is taxable
Who Should Choose?
Middle-class families who prefer safe and predictable income.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
A pension scheme for senior citizens (60+), managed by LIC.
Features
- Assured ~7.4% return
- Monthly/quarterly/annual payout options
- Tenure: 10 years
Benefits
- Guaranteed pension
- Safe and government-backed
- Good for long-term income stability
Drawbacks
- Only for 60+
- Maximum investment limit is ₹15 lakh
Who Should Choose?
Retirees needing guaranteed income for 10 years.
Rental Income (Real Estate)
Buying a rental property can generate steady monthly rent.
Benefits
- Passive income
- Property value increases over time
- Dual benefit: rental + appreciation
Drawbacks
- Needs high initial investment
- Maintenance and tenant issues
Who Should Choose?
People with extra savings who want long-term wealth.
- Corporate Bonds / NCDs (Monthly Payout)
Companies issue NCDs (Non-convertible debentures) that offer monthly, quarterly, or yearly interest.
Benefits
- Higher returns than bank FDs
- Monthly payouts available
- Good for medium-risk takers
Drawbacks
- Risk depends on issuer rating
- Not government-backed
Who Should Choose?
Investors seeking higher fixed income without entering stock markets.
How to Choose the Best Monthly Income Scheme
Before investing, consider these important points:
✔ 1. Risk Profile
- Low risk → POMIS, SCSS, PMVVY, Monthly FDs
- Medium risk → MIPs, Corporate Bonds
- Medium-high → Rental income
✔ 2. Time Horizon
- Short-term: FD or MIP
- Medium-term: POMIS
- Long-term: Rental income, PMVVY
✔ 3. Taxation
- FD interest is taxable
- Mutual fund taxation depends on gains
- SCSS interest is taxable
- Real estate rental income taxable above limits
✔ 4. Liquidity
- FDs allow premature withdrawal (with penalty)
- POMIS lock-in is 1 year
- MIPs have no lock-in
How to Start Investing (Step-by-Step)
Step 1: Identify your monthly income goal
Decide how much extra money you need monthly (e.g., ₹5,000–₹10,000).
Step 2: Choose the right scheme
Pick based on your risk profile and investment amount.
Step 3: Collect documents
Most schemes need:
- Aadhaar
- PAN
- Address proof
- Bank account details
- Passport-size photo
Step 4: Open account / invest
- Visit post office for POMIS
- Bank or LIC for SCSS & PMVVY
- Bank website or branch for FDs
- AMC or app (Groww, Zerodha) for MIP mutual funds
Step 5: Track monthly payouts
Set auto-credit to your savings account for convenience.
FAQs (Frequently Asked Questions)
- Which is the safest monthly income scheme in India?
POMIS and SCSS are considered the safest as they are government-backed.
- How much can I earn monthly from POMIS?
Approx. ₹740 per month for every ₹1 lakh invested (at ~7.4%).
- Can I invest in multiple monthly income schemes?
Yes, you can combine FD + MIP + POMIS to diversify.
- Which scheme gives the highest monthly income?
Currently, SCSS (for seniors) and monthly income mutual funds give the highest returns.
- Are monthly income mutual funds safe?
They carry moderate risk; returns are not guaranteed.
- Is rental income a good choice?
Yes, if you can invest larger amounts and manage tenants.
Final Conclusion
For middle-class families in India, monthly income schemes are a great way to build financial stability and handle monthly expenses comfortably. Whether you prefer guaranteed returns (POMIS, SCSS, FD) or higher returns with some risk (MIPs, Bonds)—there is a suitable option for every budget and age group.
To make the best decision:
✔ Identify your financial goals
✔ Understand your risk level
✔ Choose a mix of safe + growth-oriented schemes
With the right monthly income plan, you can ensure steady cash flow, peace of mind, and long-term financial security for your family.
