Instead of letting money earned from retirement, property sale, or a large investment sit idle, the Post Office’s POMIS (Monthly Income Scheme) can provide exceptional benefits. Learn how this government-guaranteed scheme works, how deposits up to ₹15 lakh earn you a guaranteed annual income of ₹1.11 lakh, and why this scheme is an excellent monthly support for everyone from the elderly to the young.
Why POMIS is the Best
There comes a time in life when we accumulate a large lump sum. Managing this money, especially when you want security and a risk-free guaranteed income, is not easy. If your search has come to a plan that offers a “safe, fixed income,” the Post Office Monthly Income Scheme (POMIS) is a boon.
This scheme not only provides senior citizens with a stable income to meet their monthly expenses, but also allows younger people to benefit from it to achieve their specific financial goals. This scheme works exactly as its name suggests—ensuring a fixed monthly income on your investment.
Invest Once, Earn Monthly Income for 5 Years
The biggest highlight of this scheme is that you only need to deposit the amount once, and the investment is locked in for a period of 5 years. The interest earned on your principal is credited to your account every month. This means that you can invest once and enjoy a comfortable monthly income for the next five years. Investments in this scheme can be made as a single account or as a joint account with your spouse, increasing your investment limit manifold.
Learn about joint and single accounts
Currently, POMIS offers a strong annual interest rate of 7.4%. This rate is completely independent of market risks, making it extremely safe.
Joint Account Benefits
If a husband and wife open a joint account, the maximum investment limit increases to ₹15 lakh. If you invest the entire ₹15,00,000, your monthly earnings at 7.4% will be ₹9,250. This way, you will earn a guaranteed fixed income of ₹1.11 lakh in a year, and your total earned income will be ₹5,55,000 in 5 years. This provides a great monthly support.
Single Account Benefits
For those who want to invest alone, the maximum limit is ₹9 lakh. By investing ₹9 lakh, you will receive a steady income of ₹5,550 per month at a rate of 7.4%. Thus, you can earn a fixed income of ₹3,33,000 in 5 years. POMIS is a powerful financial tool that transforms your investment into a fixed monthly income while minimizing risk.
Other Benefits of the Scheme
Another key feature of this scheme is that your principal is completely protected. After the completion of the 5-year term, you get back your entire invested amount (whether it is ₹15 lakh in a joint account or ₹9 lakh in a single account). This feature makes this scheme a better option than a fixed deposit (FD), as you continue to receive interest every month and your principal remains safe. If you wish, you can extend this scheme for another five years after the completion of the 5-year term.
Easy Account Opening Process
Opening an account under the Post Office Monthly Income Scheme is extremely simple, and any Indian citizen can invest in it. You can also open an account in the name of your minor child. However, if the child is under 10 years of age, the account will be operated by their guardian. To open an account, you will need to visit your nearest post office branch and submit certain required documents and fulfill certain conditions.