Invest Once And Get Monthly Income – Fixed Deposit Monthly Income Scheme & Its Advantages.
After reaching a certain age in life, most people are of the opinion that we need a constant source of income, Most of them have an accumulated fund but they are confused about where to invest this money and how to get a regular monthly income through this fund.
Hence this fixed deposit monthly income scheme is very useful for senior citizens, who are looking for a regular monthly source of income.
How to avail the benefits of this scheme
The fixed deposit has always been considered a safe investment with reasonable returns. Once you invest in a fixed deposit, there are two options available:
- The first option is to withdraw the entire fund along with interest at the time of maturity, which is also known as cumulative FD, you won’t get a regular income through cumulative FD, all your benefits will be paid at the end of the period.
- The second option available is non-cumulative FD, here you can withdraw or get a regular amount at fixed intervals, which could be either monthly, quarterly, semi-annually, or annually. In this way, once you have invested a lump sum amount, you can get regular income at fixed intervals
Advantage of Fixed Deposit Monthly Income
- The first advantage of this scheme is “TAX BENEFIT”. If you invest in Tax saver FD you can claim an exemption under section 80 C.
- It is free from market fluctuations like the stock market, once you have invested at a certain rate. it is free from market fluctuations
- You can even avail of a loan against this fixed deposit.
- In case of any financial emergency, you can withdraw the amount, after following the required procedure ( Different implications in case of tax saver FD and normal FD )