A Look Into The Best Monthly Income Schemes in India in 2026

In a third-world country like India, financial stability is the goal for a majority of households. In fact, many people have to rely on a second source of income to cope with the rising living costs.

This is exactly where government-regulated monthly income schemes come to the rescue. These plans offer guaranteed and risk-free payouts, and are therefore helpful for individuals like retirees, low-income groups, and investors having a strong aversion to risk-taking!

That being said, let’s take a look at some of the best monthly income schemes in India in 2026, and explore what’s the most suitable plan for you!

Top Monthly Income Scheme Options You Should Know

1. Post Office Monthly Income Scheme (POMIS)

First in our list comes one of the safest monthly income schemes, which is also a favorite of conservative investors, retirees, or senior citizens looking for a guaranteed source of income.

The minimum investment amount starts from as low as ₹1,500 and extends up to ₹9 lakh for a single account holder, or ₹15 lakh for joint account holders. The interest rate stands at a solid 7.4% per annum, and is paid out to your savings account every single month.

Being a risk-free income source, this is quite a popular scheme for many Indian households. In fact, if you wish to invest in this scheme, you can use a Post Office Monthly Income Scheme calculator to assess your monthly returns!

For instance, for a ₹15 lakh deposit in a joint account, you can secure about ₹9,250 every month. It’s not significant, but it’s enough to cover utility bills and groceries.

The tenure for this scheme is fixed at 5 years. Premature closure is allowed but only after 1 year, and includes penalties. All things aside, a POMIS is one of the most reliable and safe income plans you can opt for in India in 2026.

2. Senior Citizen Savings Scheme (SCSS)

If you’re over 60 or are planning to retire, this is one of the best monthly income schemes that you can opt for! Why so?

With a minimum deposit of ₹1,000 and a maximum of ₹30 lakh per individual, the SCSS currently offers a great interest rate of 8.2% per annum!

However, there’s a catch. Instead of receiving a monthly amount, you’ll receive the interest on your principal on a quarterly basis. Although such a payout approach might be an issue for many, the high interest rate makes this scheme one of the best monthly income schemes in India for senior citizens!

For example, if you invest the full ₹30 lakh, you will receive about ₹61,500 every three months. That’s much better than what POMIS offers!

Other than that, here are some key benefits of this scheme-

• You’ll receive tax benefits under Section 80C for the invested amount.
• You’ll secure the highest interest rates among all traditional savings schemes.
• The initiation process is very easy.

3. Fixed Deposits with Monthly Payouts

If you’re looking for a safe and reliable monthly income source, Fixed Deposits (FDs) are still one of the best ways to go!

While it’s true that FDs keep your money locked away for years, you can also set them up to secure a monthly paycheck!

Here are some of the factors that make bank F.Ds relevant in 2026-

• A steady monthly return: You don’t necessarily need to lock away your money for years! Instead, you can opt for monthly payout plans to cover your bills or daily expenses.
• You pick the tenure: Whether you want to stack your principal amount for a week or leave it for ten years, it’s up to you!
• Risk-free, and therefore, peace of mind: It’s a bank, not the stock market! So, your money remains safe, and you enjoy peace of mind.
• Standardized payouts: At present, banks are offering interest rates between 6% and 8%. So, the payouts, although they aren’t as high as SCSS, are standard.

Tip: Here are the updated F.D rates from some of the top government and private banks in India.

4. National Savings Certificate (NSC)

Now, if you want a safe way to grow your savings and avoid taxes, the National Savings Certificate (NSC) is a classic choice! This government-backed scheme is ultra-secure and offers the following benefits-

• A steady and guaranteed growth: At present, the NSC offers a 7.7% interest rate, which is fixed by the Indian Government.
• The ‘double’ tax break: This is one of the best parts of NSC. Added to your initial investment (up to ₹1.5 lakh), being tax-deductible, the interest you earn each year gets reinvested. And since the interest amount gets reinvested, it qualifies for a tax break too!
• No TDS: Unlike bank FDs, the post office won’t deduct any tax before giving you your money. All you need to do is report the interest and pay any applicable tax based on your income bracket at the time of maturity.
• No limits for investment: There’s no upper limit for investing in NSC! Additionally, if you ever need a loan, many banks accept the NSC certificates as collateral.

5. Systematic Withdrawal Plans (SWP)

And finally, if you think taking a little risk is fine, and you can afford it, the Systematic Withdrawal Plans (SWP) can be a great way to generate guaranteed returns.

The process is quite simple. You invest a lump sum amount in a hybrid or debt mutual fund. Then, you instruct the fund house to send you a fixed amount on a monthly basis. What’s best about SWP is that these are very flexible and tax-efficient for many investors.

Other than that, the main benefit of investing in an SWP is the potential for capital appreciation! Where major government schemes return only your principal, SWPs allow your remaining balance to grow!

Apart from that, you can also increase or decrease your monthly withdrawal amount whenever you like! However, market volatility can affect your total corpus in the long run. So, it is always wise to consult a financial advisor before investing in SWPs.

Wrapping Up

Apart from financial knowledge, you also need positive affirmations for achieving a money-making mindset, especially if you’re a retiree or belong to a low-income group category. Along with that, you need to be proactive in your approach to ensure a stable and guaranteed monthly income, that too, without any risks involved!

So, the aforementioned monthly income schemes in India are some of the best ways to bridge the gap between your financial goals and a tension-free lifestyle!

F.A.Qs

1. Which scheme is best for a monthly income in India?

There are a variety of monthly income schemes, with varied investment amounts, tenures, and interest rates. So, the best scheme is the one that suits your purpose and your financial goals.

2. Who is eligible for the monthly income scheme?

People above the age of 18 are eligible to invest in a monthly income scheme. However, monthly income schemes are especially designed for senior citizens, retirees, or risk-averse investors.

3. What is the HDFC monthly income scheme?

HDFC monthly income scheme consists of various options from HDFC that offer monthly payouts, like HDFC Life guaranteed income plan, or HDFC Hybrid Debit Fund, etc.

4. Which bank is best for a monthly income scheme?

Different banks offer different types of monthly income schemes. To opt for the best, compare their rate of interest and minimum investment amounts to make sure you invest in the right scheme.

5. Where to invest money to get a monthly income?

Monthly income schemes are programs that offer you a guaranteed monthly income for a lump-sum investment.

6. What is the Prime Bank Monthly Income Scheme?

The Prime Back Monthly Income Scheme is a Single Investment Deposit (SID) scheme, where you can earn a fixed monthly income based on the amount that you deposited, and the tenure you chose.

Amilia Brown

Amilia Brown is a seasoned business writer & strategist who simplifies complex business concepts and turn them into engaging narratives. As a trusted business writer, she delivers actionable insights with precision.