post office
If you are looking for such a government scheme, in which your money is completely safe and you also get regular income every month, then Post Office Monthly Income Scheme (POMIS) can be a good option for you. This is part of the Small Savings Scheme of the Government of India, hence the responsibility of protecting the investment in it lies with the government. This is the reason why it is counted among low-risk investment schemes. This scheme is considered better for those people who want a fixed amount of income every month.
In this scheme the investor has to deposit a fixed amount at one go. After this, the interest received on that amount is sent to the investor’s bank or post office account every month. At present, 7.4% annual interest is being given on Post Office Monthly Income Scheme. However, the government reviews the interest rates of small savings schemes from time to time, so it may change in future.
How much is the investment?
Under the Post Office MIS Scheme, both single and joint accounts can be opened. A person can invest a maximum of Rs 9 lakh in his single account. At the same time, if two or three people together open a joint account, then up to Rs 15 lakh can be deposited in it. Investment is made in lump sum and interest is received every month on the same amount.
You will get this much interest every month
It is often claimed on social media and internet that by investing in this scheme one can get assured income of Rs 10,000 every month. But according to the current interest rate this claim is not completely correct. If an investor invests Rs 15 lakh in a joint account, then at the rate of 7.4% annual interest, he will get interest of about Rs 1,11,000 in a year. That means there will be a regular income of around Rs 9,250 every month. Therefore, it is important to understand the correct mathematics of interest before investing.
It is important to know these rules
Before investing in this scheme, it is important to be aware of some rules. The account cannot be closed within one year of opening it. If an investor closes the account before completion of three years, 2% of the deposited amount is deducted and the remaining amount is returned. Therefore, to take full advantage of this scheme, it is considered better to maintain the investment till maturity.
If you want to invest without risk and want a fixed income every month, then Post Office Monthly Income Scheme can be a good option for you. However, before investing, the decision should be taken keeping in mind your needs, financial goals and the current interest rate.
Also read- What is the triple-10 rule of SIP, how does small savings every month become a big fund?
