Post Office Excellent Scheme: For investors who want to keep their money safe and are looking for a fixed income, Indian Post Office savings schemes have long been a reliable option. Although the Reserve Bank recently changed the repo rate, the Ministry of Finance has not changed the interest rates on Post Office savings schemes for the fourth quarter of the current financial year. This has provided relief to investors, who will continue to receive stable returns as before.
Monthly Income Scheme Becomes the Top Choice
Among the many Post Office schemes, the Monthly Income Scheme (MIS) is the most popular. In this scheme, investors can deposit a lump sum and receive a fixed interest amount every month. This is why this scheme is considered ideal for retired people and investors who want a regular monthly income.
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Attractive Interest Rate and Investment Security
Currently, the Post Office Monthly Income Scheme offers an annual interest rate of 7.4%. The biggest advantage of this scheme is that the principal amount invested remains completely secure. The monthly income is fixed, allowing investors to better plan their expenses.
Earn Rs 9,250 Every Month
There is a fixed investment limit in this Post Office scheme. A maximum of Rs 9 lakh can be invested in a single account and Rs 15 lakh in a joint account. A maximum of three people can be included in a joint account. If an investor, along with family members, invests Rs 15 lakh in a joint account, then at an interest rate of 7.4%, the annual interest earned is Rs 1,11,000. Dividing this over 12 months gives a fixed income of Rs 9,250 per month. Over five years, the total interest earned amounts to approximately Rs 5.55 lakh.
Rules for Account Opening and Maturity
The minimum investment to open an account in this scheme is Rs 1,000. The scheme has a tenure of five years. Upon maturity, the investor can either withdraw the entire principal amount or reinvest it.
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Why a Savings Account is Necessary
To avail of the Post Office Monthly Income Scheme, it is mandatory to have a savings account at the post office. The monthly interest is directly transferred to this savings account, eliminating the need for the investor to follow any separate procedure.
Facility for Premature Withdrawal
Although this scheme is for five years, investors can withdraw the amount even after one year if needed. A deduction of 2% from the principal amount is made for withdrawals between one and three years, and a 1% deduction is made for withdrawals after three years.
The Right Option for Those Seeking Guaranteed Returns
For those who want reliable and guaranteed returns on their savings, away from the fluctuations of the stock market, the Post Office Monthly Income Scheme is a strong option. Investment in this scheme can be easily made by visiting the nearest post office.