Turning your savings into an income that arrives every month? The idea appeals to more and more individuals, and understandably so: between inflation eating away at purchasing power and regulated savings accounts offering more than modest returns, looking for an investment that pays every month has become a natural reflex for building a supplementary income, preparing for retirement and gaining financial independence. The good news: solutions do exist, from the safest to the most rewarding. The less good news: very few investments actually pay out money each month, and some articles keep the confusion alive. In this guide, I review 9 investments with full transparency, clearly separating those that generate a genuine monthly cash flow from those that merely recreate a regular income.
Investments that pay monthly: how to generate a monthly income
Note: this article is for educational purposes and does not constitute investment advice or individualised tax advice. Your personal situation (residence, income, amounts and objectives) may alter the applicable rules. For significant amounts, consult a professional and check the official sources.
What is an investment that pays out every month?
An investment that pays out every month is one whose income (interest, rent, dividends or monthly instalments) is paid to you on a monthly basis, rather than once a year or at the end of the investment term.
It is this regular flow that makes it possible to smooth a budget or to supplement existing income.
Key points
The investments capable of generating a monthly income are mainly: savings accounts and life insurance (reconstituted income), bonds, buy-to-let property, SCPIs, dividend shares and distributing ETFs, and crowdlending, one of the few vehicles to pay real interest every month.
One essential distinction between investments, too often left unsaid, deserves to be set out right away:
Genuinely monthly payment : the money arrives in your account of its own accord every month. This is the case with property rents, crowdlending monthly instalments, or certain shares and bonds with monthly payment.
Reconstituted monthly income : the investment does not naturally pay out each month, but you organise regular withdrawals yourself. This is the case with life insurance using scheduled partial withdrawals, or savings accounts whose interest is only credited once a year.
Keeping this distinction in mind will spare you many a disappointment, we promise! Now let us turn to the concrete solutions.
Why look for an investment that pays out every month?
Before choosing a vehicle, it is essential to clarify your objective. Broadly speaking, people generally seek a monthly income for four reasons:
Supplementing your income : easing the end of the month, funding a project or improving your standard of living without depending solely on your salary.
Preparing for retirement : as pensions are often lower than final working income, a regular monthly flow takes over.
Countering inflation : leaving your money idle means losing purchasing power. An active investment helps to preserve, or even grow, your capital.
Gaining independence : gradually reducing your dependence on salaried employment, with the aim of a form of financial freedom.
One final, very practical point: a monthly income is simply easier to manage than an annual payment. It fits naturally into your day-to-day budget and your cash flows, both incoming and outgoing.
1. Savings accounts
Let us start with the best known. The Livret A, the LDDS and the LEP are guaranteed by the French State, available at any time and exempt from tax. It is impossible to be safer!
But beware of a persistent misconception: these accounts do not pay interest every month. Interest is calculated fortnightly and credited only once a year, at the end of December.
In the summer of 2026, the Livret A and the LDDS pay 1.70%, and the LEP (subject to income conditions) 2.50% net.
Their real purpose is therefore not to generate an income… but to build up a precautionary savings pot, immediately available if things go wrong. It is an indispensable foundation, but should not be confused with a source of monthly income!
Note: these savings accounts and the rates quoted apply only to French citizens and are not available in countries other than mainland France.
2. Life insurance
Life insurance allows you to place your money in a secure euro-denominated fund (around 2.5% on average in 2025) and/or in more dynamic but riskier unit-linked funds. Once again, be careful: it does not pay out an income spontaneously — you are the one at the controls.
Thanks to scheduled withdrawals, you can ask your insurer to pay you a fixed amount each month, which is convenient. In this way you build up a home-made annuity, adjustable at will.
After 8 years of holding, the tax treatment becomes particularly gentle thanks to an annual allowance on gains (€4,600 for a single person and €9,200 for a couple).
The limitation is simple: if your policy's return is low, the withdrawals will nibble away at your capital, so be cautious.
3. Bonds and bond funds
Investing in bonds means lending money to a state or a company in exchange for interest (the well-known coupons) paid at set dates.
Distribution is not standardised, and some bond funds distribute these coupons on a regular, sometimes monthly, basis.
The return is generally between 2 and 4% for the most solid issuers.
Obviously, this is not the most lucrative investment, but it is a stable and predictable building block in an income-oriented portfolio!
You are probably already aware of the main risks: default by the issuer (the party you are lending the money to) and sensitivity to movements in interest rates (beyond your control or that of the issuer).
4. Buy-to-let property
This is the great classic of regular monthly income ! Indeed, buying a property to let it out remains the most concrete way of receiving an income every month.
Each rent payment received constitutes a regular flow, and the aim is for that rent to exceed all of your costs (loan, property tax, maintenance).
The surplus is what is known as the monthly cash flow monthly.
Buy-to-let property has one major advantage: the leverage effect of credit, obtained via the mortgage loan, which allows you to invest with the bank's money.
In return, it requires management (finding tenants, maintenance, possible unpaid rent, etc.), usually an initial deposit, and above all a good knowledge of the local market.
Alongside this, there is a well-known sword of Damocles called rental vacancy, in other words the absence of a tenant and therefore of rent! This remains the main risk for your monthly budget.
5. SCPI
SCPIs are paper property, which may ring a bell.
How does it work?
In fact, SCPIs (Sociétés Civiles de Placement Immobilier) pool the money of thousands of savers to buy and let a diversified property portfolio.
By buying units, you receive a share of the rents, paid monthly or quarterly depending on the SCPI, without having to manage anything at all. That management is handled by a management company, at a cost.
As for returns: they have been around 4.5 to 4.9% in recent years.
The trade-offs: entry fees that are sometimes high, limited liquidity (selling your units takes time) and a long investment horizon, recommended at around 8 to 10 years…
The real advantage of SCPIs compared with traditional property is the pooling of risk across many buildings, which drastically reduces the risk compared with buying a single property.
6. Property crowdfunding
Property crowdfunding involves financing a developer's project collectively in exchange for a fairly high return (around 8 to 10%).
One caveat, though: in most cases, the interest and capital are repaid in fine, that is, in a single payment at the end of the project (12 to 36 months).
So it is not, strictly speaking, an investment that pays out every month. It is more of a fixed-term investment; you build up capital over the long run.
Take care not to confuse it with crowdlending, which we look at together just afterwards and which does pay regular monthly instalments.
7. Dividend shares
Holding shares means owning a part of a company, in proportion to your investment. Some of these shares, though not all, pay part of their profits back to shareholders in the form of dividends.
Most French and European companies do so and pay them once or twice a year, but a few companies, notably US listed property companies (REITs), distribute a dividend every month.
The return can reach 4 to 8% (it remains highly variable depending on market conditions), with the added bonus of potential for long-term capital gains.
The other side of the coin? There are several on the equity markets! Share prices are volatile and can be very heavily buffeted by political and geopolitical events, the dividend is never guaranteed (it depends on the company's results), and gains are subject to securities taxation (in France, a flat tax of 31.4%).
8. Distributing ETFs
The ETFs (listed index funds) replicate the performance of an index while offering broad diversification for very low management fees.
So-called distributing ETFs pay out the income generated (dividends, coupons) at regular intervals, monthly or quarterly depending on the product.
It is an attractive and accessible passive solution for gaining exposure to hundreds of companies in a single purchase, without having to know the market in detail.
Check carefully before buying: most ETFs are accumulating rather than distributing, so in practice they pay no dividends or coupons and reinvest the gains directly!
9. Crowdlending: the investment that (really) pays every month
This is doubtless the clearest answer to our question!
Crowdlending consists of lending money directly to businesses, via an online platform that selects the projects and manages the repayments.
In exchange, the borrower pays you interest.
Its great appeal for anyone seeking a monthly income : on many platforms, interest is paid every month, for the entire duration of the loan.
You therefore see a real flow arriving in your account, month after month, exactly what this type of investment promises.
Gross returns are most often between 5 and 12%, and can climb to as much as 15.6% on certain selected projects.
A Swiss platform such as Maclear allows you to invest from €50 in loans granted to European businesses. Interest is paid monthly, the projects generally last 12 to 15 months, and a Secondary Market allows you, if needed, to resell your holdings before maturity (with no guarantee of finding a buyer).
Enough to build, loan after loan, a progressive monthly income.
So of course, crowdlending is not without risks, like any investment.
The main danger is the borrower's failure to repay (default).
The golden rule is therefore diversification : spread your stake across a large number of loans rather than betting everything on a single project, and devote only a certain fraction of your savings to crowdlending.
For maximum caution: always check the platform's regulatory status, how long it has been operating and its published default rate.
Obviously, none of the tax-related questions should be overlooked, because the taxation of crowdlending in France is very real.
Comparison table of investments that pay out every month
| Investment | Average gross return | Risk | Actual payment |
|---|---|---|---|
| Livret A / LDDS / LEP | 1.7% to 2.5% | None (guaranteed) | Annual |
| Life insurance (euro funds) | ~ 2,5 % | Low | Reconstituted (withdrawals) |
| Bonds | 2% to 4% | Low to medium | Variable (sometimes monthly) |
| Buy-to-let property | 4% to 7% | Medium | Monthly (rent) |
| SCPI | ~4.5% to 4.9% | Medium | Monthly or quarterly |
| Property crowdfunding | 8% to 10% | High | At maturity (bullet) |
| Dividend shares | 4% to 8% | High | Quarterly (monthly for REITs) |
| Distributing ETF | Variable | High | Monthly or quarterly |
| Crowdlending | 5% to 12% (up to 15.6%) | High | Monthly |
Indicative returns as at summer 2026, before fees and tax. Any high-yield investment carries a risk of capital loss.
How much do you need to invest to earn €500 a month?
That is the question everyone asks. The answer comes down to a simple formula:
Capital required = target annual income ÷ net return
To receive €500 a month, i.e. €6,000 a year, everything therefore depends on the net return on your investment :
At 4% net (well-managed property or SCPI): you need roughly €150,000.
At 6% net (a more dynamic portfolio): around €100,000.
At 8% net (diversified crowdlending, after defaults and tax): around €75,000.
The lesson is twofold: the higher the target return, the less capital you need, but the higher the risk climbs! Bear in mind thatno single investment combines return, security and liquidity all at once, it is impossible. Hence the value of combining several vehicles, intelligently, in an attempt to maximise these 3 advantages.
What taxation applies to your monthly income?
Taxation can seriously eat into your return, so it must be taken into account from the outset, at the risk of seeing your performance revised downwards.
In France, the main rules are as follows:
Interest and dividends (bonds, shares, ETF, crowdlending): taxed under the single flat-rate levy, the flat tax, at around 30%. The option of the progressive income tax scale remains possible if it is more favourable to you.
Property income (rental property, SCPI): subject to the income tax scale and social levies, with optimisation regimes such as the LMNP status for furnished lettings.
Regulated savings accounts (Livret A, LDDS, LEP): interest entirely exempt from tax and social levies.
Point to note : income received each month is taxed immediately, which reduces the net return. In order to optimise the taxation of investments, the most heavily taxed savers sometimes favour accumulating vehicles (which defer tax) rather than taxable monthly income.
How to choose the investment suited to your profile?
There is no best investment in absolute terms, only the one that matches your situation.
Three simple questions make it possible to decide:
Your objective : a simple income supplement, preparing for retirement, or seeking financial independence?
Your risk tolerance : are you prepared to accept volatility, or even a risk of capital loss, in exchange for a higher return?
Your horizon : how soon might you need to get your capital back? And how much?
Once these answers are set out, the key is diversification!
But if you are diligent and combine a secure foundation (savings accounts, euro funds), a property component (SCPI, rental) and a more dynamic share (dividend shares, crowdlending), then you smooth out the risks while making your payments regular.
And never forget to think in terms net of fees and taxation!
Mistakes to avoid
It is highly likely that you will make mistakes along the way, and that is normal. But if you had to learn as fast as possible and move in the best direction, here are the mistakes you absolutely must avoid:
Believing in unrealistic returns : the Autorité des marchés financiers (AMF) regularly reminds investors to be wary of any promise of a high return presented as “guaranteed”. A high return always goes hand in hand with risk.
Confusing real income with reconstituted income : always check whether the investment pays out automatically, or whether you have to organise the withdrawals yourself.
Overlooking fees and taxation : these are what make the difference between an advertised return and a return actually received.
Forgetting about liquidity : some investments lock up your capital for several months or years; this is not a problem if you have a long horizon, but you must be aware of this parameter for each of your investments.
Failing to diversify your portfolio : putting everything into a single vehicle means concentrating risk unnecessarily.
FAQ
Which investment pays the most per month?
The most profitable investments are those carrying the most risk: crowdlending, dividend shares and property crowdfunding can exceed 8 to 15% gross return. In exchange, your capital is not guaranteed.
How can you earn interest every month?
Several solutions pay a monthly income: buy-to-let property (rent), certain SCPI, crowdlending (monthly interest instalments), monthly dividend REITs, or life insurance with scheduled withdrawals.
How much capital do you need to receive €500 per month?
Allow roughly €150,000 at 4% net, €100,000 at 6% net, or €75,000 at 8% net. The higher the target return, the less capital you need, but the greater the risk.
Which investments really pay an income every month?
Rental income from property, monthly crowdlending instalments and dividends from monthly-paying property companies (REITs) are paid out automatically each month. Savings accounts and life insurance, by contrast, only generate a reconstituted income through organised withdrawals.
Does crowdlending pay out every month?
Yes, on most platforms interest is paid monthly throughout the term of the loan. It is one of the few investments to generate a genuinely monthly flow, in exchange for a borrower default risk that makes proper diversification essential.
Generating a monthly income is no longer reserved for large fortunes. From secure savings accounts to crowdlending, by way of property and the stock market, each solution has its strengths and its constraints. The right approach: distinguish a genuinely monthly payment from a reconstituted income, diversify your vehicles, and always think in terms net of fees and tax. If your aim is to receive a regular flow from the very first months, crowdlending deserves a place in your thinking: it is one of the few investments paying real interest every month, from as little as €50 invested. Provided, as always, that you spread your stake properly and devote only a measured share of your savings to it.
Maclear AG is a Swiss peer-to-peer (P2P) lending and crowdlending platform, headquartered in Switzerland. The company acts as a financial intermediary in the non-banking sector and is a member of PolyReg SRO, in accordance with Swiss financial regulations, particularly regarding AML, KYC, and GDPR. Maclear provides individual and qualified investors access to carefully selected business loan opportunities, with integrated risk assessment, a Provision Fund, and a Secondary Market for liquidity.
The content of this article is provided for informational and educational purposes only. It does not constitute investment, financial, tax, or legal advice. Peer-to-peer (P2P) lending and crowdlending investments carry a risk of partial or total loss of capital. Past performance does not predict future results. Liquidity on a secondary market is not guaranteed. Readers are encouraged to conduct their own research and consult qualified advisors before making any financial decisions. The availability of products and services may be restricted in certain jurisdictions.