Have you ever thought about buying a new car? But you don’t have enough savings? And your current income stream cannot support your dream of being a car?
A monthly income plan (MIP) is the most suitable way to fund your dream. It involves paying out the money to the family/nominee as a fixed monthly income over a long period.
Let’s quickly see some of the best monthly income schemes that will help you fund your dream car.
What is a monthly income plan?
Monthly income plans are investment products that provide you with a steady stream of income. They work by investing primarily in equity and debt securities to produce cash flows and preserve your capital.
Best investment plan for monthly income
Senior Citizen Saving Scheme:
- This scheme is aimed at senior citizens and offers tax benefits as well as high returns on investments. It’s a great option for those looking to save for their retirement.
- You start with as low as ₹ 1000 to a maximum of ₹ 15 lacs.
- The Senior Citizen Saving Scheme scheme is currently offering 7.4% (as of 2022) per annum
Post Office Savings Scheme:
This scheme is offered by the Indian post office and offers tax benefits as well as high returns on investments. It’s a great option for those looking for a safe and stable savings plan.
Fixed Deposit:
- A fixed deposit is a savings plan where you invest your money for a fixed period and receive a fixed return on your investment.
- This is a great option for those looking for stability and guaranteed returns.
- FDs are easy to liquidate. They are the best savings plan for an emergency fund.
- The rate of interest given on FDs varies between 2.8% – 6% for general citizens
While senior citizens can get an interest of up to 6.5% in selected banks. - If you are a senior citizen it will be wise to invest in fixed deposits.
Benefits of monthly income plan
The best part about MIPs is that they help you grow your money without having to take any risks on any specific stocks or funds. You just have to choose an appropriate fund based on your age, risk appetite, and time frame to achieve your financial goals
The benefits of a MIP are:
- A best monthly income scheme allows you to invest without having to worry about market fluctuations because it guarantees that your money will always be paid back regardless of what happens in financial markets during those ten years.
- You get tax benefits on investments made through MIPs under Section 80C of The Income Tax Act, 1961. The amount invested is exempt from tax up to ₹1.5 lakh per financial year (FY).
Compound interest calculator
A compound interest calculator can be used to complete each of these computations. Compound interest is the name for the interest you earn on your investments. The power of compounding calculator will cause your money to increase rapidly over time. It reinvests the entire investment sum in order to speed up the production of profits.
Advantages of power compound interest calculator
- It’s easy to calculate – The power of compounding calculator can be easy to utilize.
- Plan your finances long-term – You need to be aware of how much money you will get after the policy’s term is up. Assess whether investing in savings plans is a good idea for you.
- Analyze your investment options – The rate of return and other characteristics of the investments you’re thinking about can be used to project their future value.
- Without charge – The calculator’s best feature is how much it costs to use it. It’s practically free, and because the computations are finished in a split second, using it just requires a small amount of your time.
Summing it up
Having the best monthly income scheme will help you with a steady stream of income. They work by investing primarily in equity and debt securities to produce cash flows and preserve your capital. This will benefit you to grow your money without having to take any risks on any specific stocks or funds.
This is one of the most reliable ways to make money online because it is easy to set up and can be done quickly, as well as being very flexible in terms of how much time you have available each day.
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