Fixed Deposit Schemes: The Best Investment Options For a Secondary Monthly Income

| January 16, 2017

If you’re looking for a way to earn a double income, then you’ve probably taken a look at what you can do through investments. Investing is not only a way to make your money work for you, but also a way to get something to live on when you’re retired.

But more than that, when your salary doesn’t suffice, or if you’re looking for a way to maximise the savings on your salary, then getting a monthly income scheme through your investments can be one of the best things you could do.

But how do you go about it? What’s the best way?

Let’s find out.

Fixed Deposit Schemes

Fixed Deposits are widely known to be one of the safest methods of investment. They’re rock solid, and they offer very good returns over a long period of time.

One method of investing in Fixed Deposit is to break up your sum and invest it in a number of smaller deposits.

Although this may seem counter-productive in a sense, this helps you avoid TDS, also known as Tax Deducted at Source. When the income you receive from a particular investment exceeds 10,000 rupees in a fiscal year, then TDS is automatically claimed by the bank you choose to invest in.

By breaking up the sum that you hold and invest it into a number of Fixed Deposits, then you can receive a sizable income, without having to worry about it being claimed by tax.

This is one way to receive monthly income on Fixed Deposit.

Keep Your Portfolio Diverse

Although this is a rule of thumb to every investor, it goes doubly so if you’re looking to make a monthly income off of your investments.

In spite of what most people assume, there is no best investment to get regular monthly income, not from a singular source.

If you want to get a sizable income every month, then you should be prepared with a diverse portfolio that not only encompasses Fixed Deposits, but also a number of other investment means, such as shares, bonds, mutual funds, recurring deposits, and more.

With a broad portfolio, you’re not only making a lot of money, you’re protecting yourself against any losses that may occur if one of your other investments suddenly tanks.

Do the necessary research in everything that you plan to invest in. What worked for your friend doesn’t mean it’ll work out for you. Everyone has different financial needs, and trying to fit one plan into another won’t necessarily guarantee success.

Real Estate Pays Well

This might seem like an investment that is just a huge burden to accumulate, but in reality, real estate is one of the best ways to keep a regular cash flow happening.

If you have a home or apartment that you’re not using, renting it out and getting regular payments through that can help you tide off monthly expenses for the foreseeable future.

Another benefit of this is the fact that once you are retired, these payments can keep coming, with almost no intervention required on your part.

This is a method that takes a while to actually accumulate, but once you do, it’s one of the best ways to keep a regular cash flow, even when you don’t have a job on hand.

Investment options are amazingly diverse, and it’s up to you to see what works and what doesn’t. With a little bit of studying and analyzing your own financial situation, you can tailor a plan for yourself that can pay huge dividends, while still allowing you to live comfortably.



Category: Investing

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