The Post Office Monthly Income Scheme (POMIS) is a great investment option for people looking to earn a fixed monthly income.
This government-backed scheme is completely safe and offers an annual interest rate of 7.4%.
You can invest up to Rs 9 lakh in a single account and Rs 15 lakh in a joint account under this scheme.
Who Can Open an Account?
1) Guardians can open an account on behalf of a minor.
2) If the minor is 10 years or older, they can open an account in their own name.
Investment Rules
1) The minimum investment to open an account is Rs 1000.
2) You can invest up to Rs 9 lakh in a single account and Rs 15 lakh in a joint account.
3) In joint accounts, all account holders have an equal share in the investment.
How is Interest Earned?
1) The scheme offers a 7.4% annual interest rate.
2) The interest is credited directly into the account every month.
3) If the interest is not withdrawn, it is added to the Post Office savings account, and interest is earned on that as well.
4) The scheme has a maturity period of 5 years, and after that, it can be extended at the new interest rate.
Example of Monthly Income
Joint Account
Investment: Rs 15 lakh
Annual Interest: Rs 1,11,000
Monthly Income: Rs 9,250
Single Account
Investment: Rs 9 lakh
Annual Interest: Rs 66,600
Monthly Income: Rs 5,550
Benefits of the Scheme
1) The scheme offers better returns than traditional bank FDs.
2) After 5 years, you can extend the investment at the new interest rate.
3) If you decide to exit the scheme after 5 years, the full deposited amount is returned.
Rules for Premature Closure
1) The account cannot be closed before 1 year.
2) If the account is closed between 1 and 3 years, 2% of the amount will be deducted.
3) If the account is closed between 3 and 5 years, 1% of the amount will be deducted.
The Post Office Monthly Income Scheme is a safe and reliable option that guarantees a steady income with low risk, making it ideal for investors seeking regular monthly returns.
