Post Office Schemes: If you are looking for an investment scheme that offers monthly earnings while also allowing you to accumulate a substantial corpus by the time of maturity, this Post Office scheme could be the right choice. The Post Office Monthly Income Scheme allows you to earn monthly interest by making a lump-sum deposit; additionally, the deposited amount is returned to you upon maturity. In this article, let us explore how much monthly income you would earn and the total amount you would receive at maturity if you invest ₹6 lakh in this scheme.
Current Interest Rate on the Post Office Scheme
It is worth noting that the Central Government has not made any changes to the interest rates for small savings schemes for the October–December 2026 quarter. The Post Office Monthly Income Scheme currently offers an interest rate of 7.4%. Interest earnings are paid out monthly, and the entire deposited amount is returned to the investor after the completion of the 5-year tenure.
Income on an Investment of ₹6 Lakh
If you invest a lump sum of ₹6 lakh in the Post Office Monthly Income Scheme at the current interest rate of 7.4%, your monthly interest income would be ₹3,700. The annual interest earned would amount to ₹400, and the total interest earned over 5 years would be ₹2.22 lakh. Upon maturity, the principal amount of ₹6 lakh would be returned.
Minimum Investment to Open an Account
You can start investing in this scheme with a minimum amount of ₹1,000. An individual can invest up to a maximum of ₹9 lakh in a single account, while the limit for a joint account is ₹15 lakh. A key feature of the joint account is that it can be held by two or three individuals.
Rules for Premature Withdrawal
Please note that the Post Office Monthly Income Scheme has a minimum investment tenure of 5 years. However, if funds are required before maturity, the account can be closed prematurely.
The account cannot be closed if the funds are needed before the end of one year.
If the account is closed after one year but before three years, a 2% deduction is made from the principal amount.
A deduction of 1% from the principal amount will apply if the account is closed after three years but before five years.
Conclusion: If you are planning to invest in the Post Office scheme, it is advisable to consult an expert first. Additionally, make sure to fully understand the post office rules and the tax implications associated with the scheme.