To meet your monthly expenses after retirement or without any worries, a great government-guaranteed scheme can prove to be the best option for you. We are talking about the Post Office Monthly Income Scheme (POMIS), which promises a guaranteed regular monthly income for the next five years after making a large investment.
This scheme is specially designed for joint account holders like husband and wife so that they can secure their future together. Let’s understand the complete details of this excellent scheme, the investment limit, and the exact calculation of monthly earnings.
Fixed Monthly Interest on Lump Sum Investment
The Post Office Monthly Income Scheme is a government savings scheme whose biggest feature is that you only need to deposit money once, and in return, you get a fixed interest credited to your account every month as your income. Because this scheme is run by the Government of India, your original investment is 100% safe. This is an excellent option for investors who are risk-averse but expect higher returns than their savings account.
Investment Limits and Joint Account Benefits
Opening a POMIS account is highly flexible. You can open it individually (Single Account) or jointly with your spouse (Joint Account). You can start this account with a small amount of just ₹1,000. You can invest up to ₹9 lakh in a single account. A spouse or any two or three adults can open this account together, with a larger investment limit of up to ₹15 lakh. The option of a joint account up to ₹15 lakh provides an excellent way for married couples to become financially strong and plan for retirement together.
Current Rates
POMIS interest rates are fixed by the government every quarter. Currently, this scheme offers a robust annual interest rate of 7.4%. This interest is credited monthly instead of compounded annually, allowing you to easily withdraw it as your monthly income.
Understand the impressive monthly returns on an investment of ₹15 lakh with a maturity period of 5 years:
Joint Account
If you deposit a lump sum of ₹15 lakh, you will receive a fixed income of ₹9,250 per month at 7.4%. This translates to an annual income of ₹1,11,000.
Single Account
Even with a deposit of ₹9 lakh, you will receive a steady and risk-free income of ₹5,550 per month.
This fixed income can be extremely helpful in providing a strong financial foundation to meet your electricity bills, children’s fees, or other monthly expenses.
A Secure Income Option for Children
The Post Office Monthly Income Scheme has a maturity period of 5 years. After the maturity period is over, you can open a new account at an increased interest rate to continue receiving monthly income for a longer period.
Another important advantage of this scheme is that if your child is over 10 years old, you can open this monthly income account in his or her name. This step is an easy way to provide fixed support for your child’s education or other monthly expenses. This government scheme is an excellent option for a risk-free, regular monthly income that can prove to be a financial support for the family.