In today's times, people are not merely interested in saving money; they also want their money to work for them and generate returns. This is precisely why people are moving beyond traditional savings methods to seek out schemes that offer both security for their capital and a steady stream of monthly income.

If you, too, are looking for a way to generate a regular monthly income through a one-time investment, this method could prove highly beneficial for you—especially for those seeking a stable income post-retirement or those looking to invest without taking on any risk.

In fact, the State Bank of India—one of the country's largest banks—offers an 'Annuity Deposit Scheme' for its customers. Under this scheme, you are required to deposit a lump sum amount upfront. Subsequently, the bank credits a fixed amount to your account every month.

A key feature of this scheme is that you know exactly how much income you will receive in advance. This monthly payout comprises both the principal amount and the accrued interest, which are gradually returned to you in installments. For this very reason, it is considered a safe and reliable investment option.

If you deposit ₹10 lakhs into this scheme, you could receive approximately ₹25,000 per month. However, the exact payout amount depends on the prevailing interest rate and the chosen tenure. The interest in this scheme is calculated in the same manner as it is for Fixed Deposits (FDs) and is compounded on a quarterly basis, thereby enhancing the overall returns.

Starting an investment in this scheme is also quite simple. You can begin with an initial deposit as low as ₹1,000, and there is no fixed upper limit on the maximum investment amount. Depending on your specific needs, you can choose a tenure ranging from 3 years to 10 years. The monthly payouts commence from the very month following your initial deposit.

Another useful feature to note is that should you find yourself in need of funds midway through the tenure... Under this scheme, it is also possible to avail a loan of up to approximately 75% of the deposited amount. In other words, the funds are not completely locked in. Overall, this scheme is ideal for those seeking a fixed monthly income alongside a safe investment.