Saving money throughout professional life is one thing and investing it in a beneficial and risk-averse avenue is another. If you’ve saved up a good amount from your earnings and income, say a total of Rs. 50 lakh, you may be wondering how to put it to best use. While you have various options at your disposal, every investment scheme comes with an inherent risk that is impossible to avoid.
Where should you invest for fixed monthly income?
From equities to stocks and bonds, each option could lead to loss of money and result in an unprofitable investment at your end. Also, such investments can lead to your cash becoming locked-in for a longer-term, thus making it unavailable to you in times of need.
In case of an unforeseen emergency, you may be unable to withdraw your own money, which can lead to unnecessary stress. There is, however, a way to avert suchunfavorable scenarios with planning and foresight.
It may be challenging to decide where to invest in today’s times of uncertainties in the banking and economic sector. Stock indices are at their volatile best, and repo rates have gone down, which has led to a fall in FD interest rates. However, you can get higher returns with company deposits, but there’s always a risk associated with them. During such times, it is best to choose safe options like Bajaj Finance Fixed Deposit.
Bajaj Finance is one of the most trusted FD issuers, with the trust of more than5,00,000 happy customers contributing to a deposit book of more than Rs. 50,000 crore. If you are wonderinghow to investRs. 50 lakh for monthly income, you can consider choosing to invest in Bajaj Finance Fixed Deposit, wherein you can generate a monthly income to fund regular expenses while protecting your savings.
Monthly Income from Rs. 50 lakh Investment
There are various options available in the market where you can invest Rs. 50 lakh for a steady monthly income, But, before making a decision, it's important to think about your risk tolerance, how long you want to invest and the impact of taxes. Here are some popular schemes in India that can give you monthly return for a Rs. 50lakh investment.
Scheme Name | Annualised Interest Rate | Monthly Amount (Approx.) |
Fixed Deposit (monthly payout) | 8.60% | Rs. 35,833 |
Debt Mutual Funds (SWP) | 7.00% | Rs. 29,166 |
Please note that these calculations are approximate, and actual returns may vary based on market conditions and specific terms of each scheme. Always consult with a financial advisor before making investment decisions.
How to get monthly income from an investment of Rs. 50 Lakhs?
You can get a good income of up to Rs. 32,375 per month, by investing Rs. 50 lakh in a Bajaj Finance Fixed Deposit. All you need to do is choose the option for non-cumulative fixed depositthat enables you to select periodic payouts. You can choose to get interest payouts on a monthly, quarterly, half-yearly or annual basis. If you’re looking to earn monthly income, you can select the option to get payouts monthly. This is particularly helpful for senior citizens seeking regular monthly payments.
To understand this better, let’s look at the interest rates applicable forRs. 50lakh deposit with different tenures in the table below.
Revised interest rates for customers below 60 years of age 03 Apr, 2024.
*Special interest rates are offered on tenure of 18, 22,33, 42 and 44 months.
Tenure in months | Cumulative (interest + principal amount payment at maturity) | Non-cumulative (interest payout at a defined frequency, principal paid at maturity) | |||
At maturity (p.a.) | Monthly (p.a.) | Quarterly (p.a.) | Half yearly (p.a.) | Annual ( p.a.) | |
12 - 14 | 7.40% | 7.16% | 7.20% | 7.27% | 7.40% |
15-17 | 7.50% | 7.25% | 7.30% | 7.36% | 7.50% |
18* | 7.80% | 7.53% | 7.58% | 7.65% | 7.80% |
19-21 | 7.50% | 7.25% | 7.30% | 7.36% | 7.50% |
22* | 7.90% | 7.63% | 7.68% | 7.75% | 7.90% |
23 | 7.50% | 7.25% | 7.30% | 7.36% | 7.50% |
24-29 | 7.80% | 7.53% | 7.58% | 7.65% | 7.80% |
30-32 | 7.80% | 7.53% | 7.58% | 7.65% | 7.80% |
33* | 8.10% | 7.81% | 7.87% | 7.94% | 8.10% |
34 - 35 | 7.80% | 7.53% | 7.58% | 7.65% | 7.80% |
36-41 | 8.10% | 7.81% | 7.87% | 7.94% | 8.10% |
42* | 8.60% | 8.28% | 8.34% | 8.42% | 8.60% |
43 | 8.10% | 7.81% | 7.87% | 7.94% | 8.10% |
44* | 8.25% | 7.95% | 8.01% | 8.09% | 8.25% |
45 - 60 | 8.10% | 7.81% | 7.87% | 7.94% | 8.10% |
As one of the safest options to protect your savings, Bajaj Finance FD is the best choice for you to get started. Here’s what makes Bajaj Finance Fixed Deposit the best choice to get a monthly income out of your hard-earned savings of Rs. 50 lakh.
When investing in a Bajaj Finance Fixed Deposit, choosing a tenure of 36 months or more helps you get the highest interest which enables you to get a substantial amount of interest per month onRs. 50 lakh FD to fund your regular expenses, if you choose to receive payouts periodically.
Benefits of Investing in a Monthly Investment Plan
- Safety of your deposit
You may be worried when investing in a company FD, which yields higher returns than bank FDs. However, Bajaj Finance has the highest safety ratings of CRISIL AAA/STABLE and [ICRA]AAA(Stable), making it one of the safest options forRs. 50 lakh investment in India. Additionally, Bajaj Finance FD is one of the only FD issuers in India to have ‘0 unclaimed deposits’ – which indicates the level of commitment towards deposit holders. - Unaffected by volatility and market fluctuations
The interest rates on most other forms ofinvestment rise and drop with alarming frequency based on market trends. Thus, you usually cannot determine whether the following change will reduce your investment’s value or increase it. Bajaj Finance Fixed Deposit, however, remains untouched by any form of volatility, thereby guaranteeing assured returns. - Secured returns on your deposit
Bajaj Finance Fixed Deposit guarantees stability, even if the economy is undergoing major fluctuations. This means that you get a fixed interest on your investment, which you can calculate using a Fixed Deposit Calculator much in advance.
Using a Bajaj Finance Fixed Deposit Calculator is very easy, and you can determine the estimated returns you can get, even before you start investing in this FD. This makes it one of the best planners for getting lucrative returns on your deposit. - Flexibility of time and interest payout frequency
When investing in a Bajaj Finance Fixed Deposit, you can easily choose your tenure, ranging from 12 months to 60 months. Thus, you can select the maturity period for your FD as per your goals and requirements.
Additionally, if you’re looking to generate fixed monthly income, you have the flexibility to choose the frequency of interest payouts. The options available for periodic payouts are monthly, quarterly, half-yearly and annually. This makes your FD a flexible investment in many ways. - Convenient online investing
With Bajaj Finance online FD option, you can enjoy a paperless investment process that takes a few minutes to lock into attractive FD interest rates. This option makes it easy for you to invest from the comfort of your home and safeguard your savings within a few minutes.
Things to Consider Before Investing Rs. 50 lakhs
- Financial Goals: Define your financial goals clearly. Whether it's wealth creation, regular income, or a specific target, understanding your objectives will guide your investment strategy.
- Emergency Fund: Ensure you have an emergency fund in place before considering significant investments. This fund provides a financial cushion in unexpected situations.
- Risk Tolerance: Assess your risk tolerance level. Different investment options come with varying degrees of risk, Do you research before investing
- Diversification: Spread your investments across different asset classes to reduce risk. Diversification helps balance your portfolio and can potentially enhance overall returns.
- Inflation Protection: Keep in mind the impact of inflation on your returns. Look for investments that have the potential to beat inflation to ensure the purchasing power of your money remains intact.
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