look news india
There comes a phase in life when you have a huge amount of money in your hands. It could be a retirement fund, money from selling property, or some other big investment. Investing a large amount is not as easy as it seems. A wonderful scheme of the post office can prove to be a boon for you. This scheme not only provides regular income support to the elderly for their monthly expenses, but the youth can also avail it to meet their financial needs. This scheme is Post Office Monthly Income Scheme (POMIS).
This scheme of the post office works as per its name. This ensures that you receive a fixed income every month on your investment. The most special thing about this scheme is that you will have to deposit this money only once, for a period of 5 years. The interest received on your principal amount is deposited in your account every month. That is, invest once and comfortably enjoy your monthly income for the next 5 years. You can invest in this scheme individually (single account) or jointly with your spouse (joint account).
Currently, POMIS offers a strong annual interest rate of 7.4%, providing excellent returns, independent of market risks. If you open a joint account as husband and wife, the maximum investment limit increases to ₹15 lakh. If you invest ₹15,00,000 in a joint account, your monthly income will be ₹9,250 and the annual interest rate will be 7.4%. Thus, by the end of one year, your total income will be ₹1.11 lakh. In five years, this income will be ₹5,55,000.
Post Office Monthly Income Scheme is a great option for those who have a lump sum amount but want to invest individually. You can deposit up to ₹9 lakh in a single account. Investing ₹9 lakh at an interest rate of 7.4% will give you ₹5,550. Thus, in 5 years, you can get a total fixed income of ₹3,33,000.
Another specialty of this scheme is that your principal amount remains completely safe. On completion of the 5 year period, you get your ₹15 lakh (in joint account) or ₹9 lakh (in single account) back. This makes this scheme a better option than Fixed Deposit (FD), because in this you get interest every month and your principal remains safe. If you wish, after completion of the five year period, you can extend this scheme for another five years.
Opening an account under the Post Office Monthly Income Scheme is very easy. Any Indian citizen can invest in it. Apart from this, you can also open an account in the name of your child. However, if the child is below 10 years of age, only his/her parents or legal guardian will operate the account. To open an account you have to go to your nearest post office. There are certain documents and requirements for this. 1) It is mandatory to have a savings account in the post office. 2) You must have Aadhar Card and PAN Card as proof of identity.