In these challenging times of inflation, meeting monthly household expenses is a major concern, especially for the elderly who don’t have a fixed source of income. Imagine how incredibly relieving it would be if you received a fixed amount in your bank account on a fixed date every month! To meet this need, the Indian Post Office has introduced a wonderful and secure scheme called the Post Office Monthly Income Scheme (POMIS). This is an excellent option for investors who are risk-averse and want a stable monthly income.
What is the POMIS Scheme
The Post Office Monthly Income Scheme (POMIS) operates on a straightforward and simple investment process. You deposit a fixed amount in a lump sum. The annual interest earned on this deposit, at the government-determined interest rate (currently 7.40% per annum), is divided equally over 12 months and credited to your Post Office savings account every month.
Monthly Income
The monthly income depends on the deposit amount. A single individual can deposit a maximum of ₹9 lakh in a single account. At 7.40% interest, you will receive a fixed income of ₹5,550 per month on ₹9 lakh. If you open the account jointly with your spouse, the investment limit increases to ₹15 lakh. If a couple invests ₹15 lakh together, they receive a lump sum of ₹9,250 per month. This amount is directly deposited into their post office savings account, which they can easily use for their monthly expenses.
Investment Safety and Full Return after 5 Years
The biggest concern among new investors is the safety of their principal. The biggest and most significant advantage of POMIS is that it is a fully central government scheme. This means your money is 100% guaranteed by the government and remains completely unaffected by stock market fluctuations, making your investment completely risk-free.
Maturity Period
The maturity period of this scheme is 5 years. The ₹9 lakh or ₹15 lakh you deposit is locked in for 5 years. During this period, you receive regular monthly interest. After the completion of 5 years, your entire invested amount (principal) is safely returned to you. This means you received the benefit of monthly interest for 5 years, and ultimately, your entire capital was safely returned.
Who can operate a POMIS account and how
Any individual can open a POMIS account. Guardians can also open this account in the name of minors. The account can be opened individually or jointly with up to three adults, allowing the full benefit of the joint account limit. This scheme is an extraordinary boon for the elderly as it ensures them a regular and respectable income after retirement.