Post Office Monthly Income Scheme: In the volatile world of the stock market, if you’re looking for a scheme with safe and fixed returns, the Post Office Monthly Income Scheme (POMIS) could be a great option for you. This scheme is specifically designed to secure the future of married couples, senior citizens, and children. After investing, a fixed amount is received as interest every month, ensuring a stable income.
What is the Post Office Monthly Income Scheme?
This government scheme of the Indian Postal Department is completely safe and very popular among small investors. An account can be opened with a minimum investment of ₹1,000. Both single and joint accounts are available. A maximum investment of ₹9 lakh is allowed in a single account and ₹15 lakh in a joint account.
The tenure of this scheme is 5 years, which can be extended by 5 years each. Currently, this scheme offers an annual interest rate of 7.4%. The interest amount is deposited into the account every month, providing a regular income.
How the Scheme Works
The annual interest in the Post Office Monthly Income Scheme is divided into 12 equal parts and transferred to your account every month. If you don’t withdraw the interest every month, this amount continues to accumulate in your Post Office savings account. Upon completion of the scheme’s term, you receive this interest along with the principal in a lump sum.
Income for Couples and Single Accounts
If you are married and open a joint account of Rs 15 lakh, the annual interest will be approximately Rs 1,11,000. This means you will receive a fixed income of approximately Rs 9,250 per month. Similarly, if a person invests Rs 9 lakh in a single account, they will receive an interest rate of approximately Rs 5,550 per month. This is a completely safe investment because it is backed by the government and there is no market risk.
Open an account in your children’s name.
The unique feature of this scheme is that accounts can be opened in the names of children above 10 years of age. The interest earned can be used for their school fees, hobby classes, or any other educational expenses. This option can prove to be a strong financial plan for parents.