Are you seeking a safe investment option with a guaranteed monthly income? Look no further than the Post Office Monthly Income Scheme, a reliable scheme backed by the Government of India.
Those with extra money often seek various investment opportunities. Some buy land to increase their wealth, while others invest in the stock market.
However, it’s essential to acknowledge that both options carry some risk. Wouldn’t it be ideal to secure a guaranteed monthly income without risk?
The good news is that the post office offers a Post Office Monthly Income Scheme (POMIS) specifically designed for people like you!
Post Office MIS
Post Office Monthly Income Scheme (POMIS) is a government-backed investment option offered by the Indian postal service. It is designed to provide investors with a steady and secure source of monthly income.
POMIS is known for its simplicity, reliability, and attractive interest rates, making it a popular choice among risk-averse investors.
What is POMIS?
POMIS is a small savings scheme offered by India Post. It allows you to invest a fixed amount monthly and earn interest on the deposit.
The interest is compounded monthly and paid to your account every month, providing a steady income stream.
Unlike traditional fixed deposit schemes, the Post Office’s Monthly Income Scheme allows you to withdraw interest monthly.
This feature makes it a lovely option for retirees seeking a steady income stream. Let’s explore this scheme’s investment limits, interest rates, and other details.
| Name of the Scheme | Post Office Monthly Income Scheme |
|---|---|
| Subject | National Savings Monthly Income Account (MIS) |
| Website | National Savings MIS |
| Interest Rate | 7.4% |
Post Office monthly income scheme
The Post Office’s monthly income scheme allows a maximum deposit of Rs. 9 lakh for individual accounts and Rs. 15 lakh for joint accounts.
Post Office MIS Interest Rate
Investments in Post Office MIS can be made for a maximum period of 5 years. The current interest rate is 7.4% per annum. You can withdraw the interest earned on your investment monthly.
POMIS Calculation
For example, consider a joint account with a deposit of Rs. 15 lakhs. This will earn you an interest of 7.4 percent. Therefore, you will get Rs. 1.11 lakhs in interest per year.
If you deposit for five years, the total interest earned will be Rs. 5,55,000. This translates to Rs. 9250 per month, which can be helpful for monthly expenses. In a separate account, if a person has Rs. 9 lakhs, depositing this amount will earn Rs. 5,550.
Who can Invest in POMIS?
- Indian residents (singly or jointly)
- Minors above ten years of age (with a guardian)
How to Open a POMIS Account?
- Visit your nearest post office branch and inquire about opening a POMIS account.
- You must fill out an application form and submit necessary documents like ID proof and address proof.
Is POMIS Right for You?
POMIS is an excellent option for risk-averse investors seeking a safe and reliable source of monthly income. It’s ideal for retirees, individuals planning for future expenses, or those building an emergency fund.
However, you might explore other investment avenues if you have a higher risk tolerance and prioritize capital appreciation.
Conclusion
POMIS offers a unique combination of safety, guaranteed returns, and monthly income. Understanding the features and benefits lets you decide if POMIS aligns with your financial goals.
For a secure and hassle-free investment experience, consider visiting your local post office and opening a POMIS account today.