The government-backed Post Office Monthly Income Scheme (also called the National Savings Monthly Income Scheme Account) is a very popular and safe savings plan. Investors get fixed and assured returns, so there is almost no risk from market changes. The current annual interest rate of this scheme is 7.40%, which the government reviews and fixes every quarter.
To invest in this scheme, you must be an Indian citizen and at least 18 years old. This is a one-time investment scheme, where you deposit money once and get monthly income benefits.
Investment Limit:
You can open a POMIS account by depositing just Rs 100 and then invest in multiples of Rs 1,000. For a single account, the maximum investment limit is Rs 9 lakh. In a joint account, the maximum limit is Rs 15 lakh, so two family members can invest together.
Interest Rate and Tenure:
The current interest rate is 7.40% per year. Interest is paid monthly, starting one month after the account is opened. The usual tenure of the scheme is 5 years.
Tax and Nominee Benefits:
The monthly interest you earn is taxable. You can also add a nominee, so the nominee can get the investment and interest if you pass away.
Example:
If a couple invests Rs 15 lakh at 7.40% per year, they will get about Rs 1,11,000 per year or Rs 9,250 per month. The money is deposited directly into the bank account. This makes it a good option for retired people, housewives, or anyone who wants a safe and regular income.
Why POMIS is Attractive:
- Guaranteed returns: Not affected by market changes.
- Regular monthly income: You get money every month.
- Nominee facility: Keeps your investment safe.
- Easy to open: Any post office can open an account.
Limitations:
- Penalty for early withdrawal.
- Tax on interest.
- Capital must be withdrawn or reinvested after maturity.
Overall, the Post Office Monthly Income Scheme is a safe and reliable way to earn regular income. It is one of the best government savings schemes for risk-free income in today’s economy.