How to invest Rs. 50 lakhs for Monthly Income in India

Explore the best investment plans in India to invest money to get a monthly income. Fixed deposit is the best fixed monthly income scheme to invest Rs. 50 lakhs.
Rs. 50 lakh FD
3 mins
2 January 2023

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 lakhs, 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 such unfavorable 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 than 5,00,000 happy customers contributing to a deposit book of more than Rs. 50,000 cr. If you are wondering how to invest Rs. 50 lakhs 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 lakhs Investment

There are various options available in the market where you can invest Rs. 50 lakhs 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. 50 lack 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 deposit that 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 for Rs. 50 lakh deposit with different tenures in the table below.

Revised interest rates for customers below 60 years of age 02 Jan, 2024.
*Special interest rates are offered on tenure of 15, 18, 22,30,33, 39, 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*

7.45%

7.21%

7.25%

7.32%

7.45%

16-17

7.50%

7.25%

7.30%

7.36%

7.50%

18*

7.40%

7.16%

7.20%

7.27%

7.40%

19-21

7.50%

7.25%

7.30%

7.36%

7.50%

22*

7.50%

7.25%

7.30%

7.36%

7.50%

23

7.50%

7.25%

7.30%

7.36%

7.50%

24

7.55%

7.30%

7.35%

7.41%

7.55%

25-29

7.35%

7.11%

7.16%

7.22%

7.35%

30*

7.45%

7.21%

7.25%

7.32%

7.45%

31-32

7.35%

7.11%

7.16%

7.22%

7.35%

33*

7.75%

7.49%

7.53%

7.61%

7.75%

34 - 35

7.35%

7.11%

7.16%

7.22%

7.35%

36-41

8.05%

 

7.77%

7.82%

 

7.89%

 

8.05%

 

42*

8.60%

8.28%

8.34%

8.42%

8.60%

43

8.05%

7.77%

7.82%

7.89%

8.05%

44*

8.35%

8.05%

8.10%

8.18%

8.35%

45 - 60

8.05%

7.77%

7.82%

7.89%

8.05%


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 on Rs. 50 lakhs FD to fund your regular expenses, if you choose to receive payouts periodically.

Benefits of Investing in a Monthly Investment Plan

  1. 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 for Rs. 50 lakhs 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.
  2. Unaffected by volatility and market fluctuations
    The interest rates on most other forms of investment 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.
  3. 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.
  4. 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.
  5. 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.

Calculate your expected investment returns with the help of our investment calculators

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Frequently asked questions

Which is the best investment plan for monthly income?

The best investment plan for monthly income depends on individual preferences and risk tolerance. Fixed Deposits with regular payouts, or Monthly Income Plans (MIPs) that blend safety and growth are commonly considered. It's crucial to assess personal financial goals and consult with a financial advisor before making any investment decision.

Can I invest money and get monthly income?

Yes, you can invest money to receive a monthly income. Consider options like Monthly Income Plans (MIPs) that are designed to provide a regular income stream while also offering potential for growth. Ensure to choose an investment that aligns with your financial goals and risk tolerance.

How monthly income plan is different from other fixed income plans?

A Monthly Income Plan (MIP) stands out by focusing on providing a regular income stream, a part of investment plan is invested debt and another part in equity whereas fixed income instrument invest in debt therefore returns are fixed.

When is the best time to buy a monthly income plan?

The best time to invest in a Monthly Income Plan depends on personal financial goals and market conditions. Generally, consider monthly income plan when seeking a balance of regular income and potential capital growth. Assessing your risk tolerance and investment horizon is crucial for making the right decision.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.