In the past, passive income ideas were often limited, and many would opt to go the rental income route. While effective, this is not available to everyone, and so many still rely solely on their income. In today’s financial climate, such an approach is not recommended, which is why it is prudent to have passive streams of income offering higher returns. These supplement your regular income, regardless of whether you run a business or if you earn a salary.
Thanks to modern advancements and the availability of a gamut of financial products, you can now earn passive income online through investing. Financial institutions now offer a wide range of solutions, designed to complement your financial goals with maximum flexibility. Make no mistake, you can still go the traditional route, but it pays to consider other options that may be easier to get started.
Passive income ideas to consider
Today, the more common passive income ideas are based on digital ecosystems. For instance, some choose to monetise digital products such as e-books, courses, UX kits, plug-ins, etc. While potentially profitable, it takes time and dedicated effort to develop these products and market them effectively. Alternatively, investing serves as a far more convenient way to generate passive income. Here are a few ways:
- Investing in mutual funds
- Lending money through peer-to-peer lending platforms
- Purchasing dividend-yielding stocks
However, most of these passive income ideas have high risks associated with them, or depend on others’ actions to generate and sustain profits. Alternatively, you can consider parking your funds in options such as the Post office Monthly income scheme (MIS) or a fixed deposit.
With the former, you get an interest rate of 6.6% p.a., and your interest earnings are paid monthly. Do note that the tenor for this investment is 5 years, and the maximum you can invest is Rs.4.5 lakh as an individual. Joint account holders can invest up to Rs.9 lakh, and all earnings are taxable. While a secure option, MIS does have an upper limit and can restrict you from investing a larger sum. This limits your ability to get higher passive income. Thankfully, you can solve this problem by investing in an FD.
To know about the different ways in which an FD works to this effect, read on.
Fixed deposits provide steady cash flow with timely interest payouts.
By investing in an FD, you can get your interest earnings deposited to your savings account monthly, quarterly, half-yearly or annually. FD issuers offer these payout options so that you can supplement your income, as required. Do note that this is an effective way to generate passive income online as most leading issuers allow you to avail this option digitally. You can choose the best option for you at the time of investing, and you do not have to worry about the upper limit. As such, you can easily supplement your monthly income.
Fixed deposits are immune to market risks
From all the passive income ideas, the FD stands out because of its secured nature. These instruments are not affected by market fluctuations and they provide returns steadily over time. Both the security and the stability of fixed deposits make it one of the safest and most trusted instruments for investors. For other instruments linked to the market, it is not possible to forecast the exact returns. But with fixed deposits, you can do that easily, and be more organised while planning your finances.
Fixed deposits are a good instrument irrespective of your age or stage of career
Whether you have just started earning an income, or are at the mid-level of your career or a senior citizen, investing in an FD is a wise choice in all cases. This safe investment option comes with a higher interest rate than a savings account, and helps you to build sufficient corpus for your short-term and long-term goals. Once you have reached 60 years, most issuers will offer a higher interest rate, allowing you to generate even more passive income.
To enjoy the best returns against an easy and convenient investment process, be sure to opt for the Bajaj Finance Fixed Deposit. With an interest rate of up to 7.75% and tenor of up to 60 months, it is one of the best passive income ideas to try. The issuer has the highest credit ratings from CRISIL and ICRA, so you can be sure that your corpus is safe. To enjoy passive income stress-free, invest online and start building your financial security.
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