New Delhi: The Post Office offers certain specific schemes designed to help people build wealth. By opening an account under these Small Savings Schemes, individuals can secure substantial monthly returns. The government has not altered the interest rates for Small Savings Schemes for the April-June quarter; simply put, the interest rates have been kept stable.
If you wish to arrange for a steady monthly income—either for your post-retirement years or even before that—the Post Office’s National Savings Monthly Income Account is an excellent choice. This scheme currently offers an annual interest rate of 7.4%. Through this scheme, you can secure a monthly income of up to ₹9,250. The scheme requires a minimum investment tenure of five years.
key highlights
- Interest calculation examples:
- ₹9 lakh investment → ₹66,600 annual interest
- ₹15 lakh (joint account) → ₹1,11,000 annual interest → ₹9,250 per month
- Principal return: Returned after 5 years’ maturity. Can be reinvested in the same scheme to continue the monthly income.
- Eligibility: Any Indian citizen can open an account. Joint accounts allowed (up to 3 adults or with a minor).
What is the Post Office Monthly Income Scheme?
The Post Office Monthly Income Scheme is classified as a small savings scheme backed by the Central Government. This scheme is particularly beneficial for retirees, senior citizens, and risk-averse investors. It is also often referred to as a type of ‘Term Deposit.’ By investing in this scheme, one can generate a significant monthly income.
Find Out How Much You Will Receive Every Month
The annual interest earned on the Post Office savings account is distributed on a monthly basis. This amount is credited to your account every month. If you choose not to withdraw the funds, the interest amount will remain deposited in your Post Office savings account. However, you will not earn further interest on this accrued interest amount.
Interest payments are calculated solely on the principal amount invested. For instance, if you invest ₹9 lakh in this scheme, you will receive ₹66,600 as interest, calculated at an annual rate of 7.4%.
If you invest ₹15 lakh through a joint account, you will earn an annual interest of ₹1,11,000. When distributed equally over 12 months, this translates to a monthly benefit of ₹9,250.
When Will the Principal Amount Be Returned?
The maturity period for the Post Office scheme is five years. Upon the completion of the scheme’s tenure, the deposited principal amount will be returned to you. If you wish, you may choose to reinvest this amount back into the same scheme, thereby continuing to receive a monthly income. Any Indian citizen can open an account. Additionally, a joint account can be opened in the name of a minor or in the names of up to three adults.
