Post Office Monthly Income Scheme: In today’s inflationary times, monthly expenses often strain budgets. Many people seek a stable income, especially for retired individuals or small investors. Keeping this need in mind, the Post Office Monthly Income Scheme (POMIS) is an option that is not only safe but also provides a fixed monthly income. This scheme is considered extremely effective for those who want a guaranteed return on their money without any risk.
Learn how monthly income is generated
POMIS is a fixed-income government savings scheme in which you deposit a fixed amount for a period of 5 years. It currently offers an annual interest rate of 7.40 percent. This interest is remitted to the investor in monthly installments. Once deposited, you receive regular monthly income for the next 5 years.
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How much money is received each month?
If a person invests ₹9 lakh in their own name, they receive approximately ₹5,550 in interest each month. If a husband and wife jointly deposit ₹1.5 lakh, they can earn approximately ₹9,250 per month. This amount is available without interruption for 5 years. During this period, the investment amount remains locked, and the entire principal amount is returned upon completion of five years.
What to do after maturity?
After the five years are completed, the entire investment amount is returned to the investor’s account. If desired, the investor can reinvest their money in the same scheme and receive monthly income once again. Reinvestment is beneficial for those who want to maintain a consistent monthly income.
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What are the features of the scheme?
Being a government scheme, it is considered completely safe. There is no market risk involved, so investors need not worry. Multiple accounts can be opened in the name of one person under this scheme. The post office also offers the option of transferring the investment amount to an RD account so investors can earn more interest. The ability to add a nominee ensures protection for the family in case of any unforeseen events.