Post Office Scheme : Your monthly expenses can easily disturb your budget. But the Post Office Monthly Income Scheme (POMIS) is a special type of savings scheme that provides you with a regular monthly income.
In this scheme, your money is deposited for a fixed period, and you earn monthly interest on it. It is especially suitable for people looking for a regular source of income, such as retired individuals or small investors. Investing in POMIS can help you manage your monthly expenses easily. Let’s understand this scheme in detail.
Post Office Scheme : How You Earn Money
POMIS is a scheme in which you invest a fixed amount and receive a fixed rate of interest every month (currently 7.40% per annum). Under this scheme, you make a one-time lump-sum investment, and in return, you receive a monthly income as interest. This is a safe savings option for people who prefer low-risk investments.
How Much Will You Get Every Month
Individually, you can invest up to ₹9 lakh, and jointly (with spouse) up to ₹15 lakh. The investment period is 5 years.
- If you invest ₹9 lakh individually, you will receive around ₹5,550 per month at a 7.4% interest rate.
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If you invest ₹15 lakh jointly, you will receive around ₹9,250 per month.
This monthly income will continue for 5 years, which is the lock-in period of the scheme. You cannot withdraw the money before 5 years.
You Will Get Your Entire Money Back
After receiving interest for 5 years, you will get your entire invested amount back at the end of the term. If you wish, you can reinvest the amount, and your monthly income will start again.
Key Features
Security: It is a government-backed scheme, so your money is completely safe.
No Risk : Since it is a fixed-income scheme, your investment is not affected by market fluctuations. It is a completely risk-free investment.
Low Minimum Investment : You can start with a small amount of ₹1,000.
Guaranteed Returns : You will receive a fixed monthly income. The returns are better compared to other fixed-income options like FDs.
Multiple Accounts : You can open more than one account in your name. However, the total deposit across all accounts must not exceed ₹9 lakh.
Joint Account : Two or three people can open a joint account. In this case, the total deposit can go up to ₹15 lakh.
Fund Transfer : Investors can transfer their funds to a Recurring Deposit (RD) account, a facility recently introduced by the Post Office to earn higher interest and better returns.
Nominee Facility : The investor can appoint a nominee (a family member), who can claim the benefits and funds in case of the investor’s death during the account tenure.