Post Office Scheme: Deposit ₹15 lakh in the Post Office, and ₹9,250 will be credited to your account every month..
Post Office Monthly Income Scheme: If you are looking for a secure investment that offers a fixed monthly income, the Post Office Monthly Income Scheme (POMIS) could be an excellent option for you. Backed by the Central Government, this small savings scheme allows for a maximum investment of ₹15 lakh through a joint account. At the current annual interest rate of 7.4%, an investment of ₹15 lakh yields a regular monthly income of approximately ₹9,250. Let us look at the key details of this scheme:
What is the Post Office MIS?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme designed to provide investors with a fixed monthly income. It is particularly popular among senior citizens, retirees, and investors seeking regular monthly returns with minimal risk. The principal amount invested in this scheme remains completely secure, and interest is paid out on a monthly basis.
How much can be invested?
An individual can invest up to a maximum of ₹9 lakh through a single account in the Post Office MIS. For joint accounts, the maximum investment limit is ₹15 lakh. The total investment made by an individual across all MIS accounts must not exceed these prescribed limits. The scheme currently offers an annual interest rate of 7.4%, payable monthly. The interest rate is determined by the Central Government on a quarterly basis.
What will be the monthly earnings on an investment of ₹15 lakh?
If an investor deposits ₹15 lakh in a joint MIS account and the current annual interest rate of 7.4% remains applicable, they will earn ₹1,11,000 in interest annually. This translates to a fixed monthly income of approximately ₹9,250 credited to their account.
The calculation is as follows:
Total Investment: ₹15,00,000
Interest Rate: 7.4% per annum
Annual Interest: ₹1,11,000
Monthly Income: Approximately ₹9,250
What will be the total benefit over 5 years?
The maturity period for the Post Office MIS is 5 years. If the interest rate remains unchanged, the investor will earn a total of ₹5,55,000 in interest over the full 60-month period. Upon maturity, the principal amount of ₹15 lakh is also refunded.
What are the rules for premature account closure?
Closing the account within one year of opening is not permitted under this scheme.
If the account is closed after three years but before maturity, a deduction of 1% of the deposited amount will be made, and the remaining balance will be refunded.
Can this account be opened at a bank?
No. The Post Office Monthly Income Scheme is operated by the Department of Posts; therefore, this account can only be opened at a post office. The facility to open a POMIS account is not available at any bank.
Are there any tax benefits?