You will get fixed income every month from this post office scheme! Fixed monthly earning of ₹5,550 on depositing ₹9 lakh, know the rules

After retirement from job, it is considered very important to have a fixed and secure source of income every month for senior citizens or to meet regular household expenses. For investors who want guaranteed returns every month with 100% government protection, staying away from the ups and downs of the stock market or mutual funds, the Post Office Monthly Income Scheme (POMIS) of the Post Office is the most reliable option. Under this scheme, investors deposit a lump sum capital once and the government transfers a fixed amount directly to their savings account as interest every month for the next 5 years.

Post Office Monthly Income Scheme is a small savings scheme supported by the Ministry of Finance, Government of India. The maturity period of this scheme is 5 years. Currently the government is on this scheme 7.4% annual interest Is giving.

The biggest USP of this scheme is that the interest is calculated on an annual basis, but it is paid to the investor every 30 days i.e. on a monthly basis. After completion of the period of 5 years, the investor’s principal amount is returned in full without any deduction.

The government has increased the deposit limits with the aim of making the scheme more attractive for small and medium investors:

• Single Account: A single person can have a maximum in his/her own name ₹9,00,000 (9 lakh rupees) Can deposit up to.

• Joint Account: Husband-wife or any two to three adults together can open a joint account, in which the maximum ₹15,00,000 (15 lakh rupees) Deposit is allowed up to. In a joint account, the stake of all the account holders is considered equal.

• Minimum Investment: A minimum amount of ₹1,000 is required to open an account and investments can be made in multiples of ₹1,000 thereafter.

Based on the current interest rate of 7.4%, the exact monthly income on maximum investment in single and joint accounts is as follows:

If a husband and wife jointly deposit an amount of ₹ 15 lakh in this account, then they will get a fixed income of ₹ 9,250 every month sitting at home, which can easily meet the monthly minor expenses, electricity bill or medicine expenses. After 5 years, the principal amount of ₹ 15 lakh will be returned safely.

1. Sovereign Guarantee (100% protection): Post Office Savings Schemes are directly backed by the sovereign guarantee of the Government of India. There is no risk of default or bank collapse like banks do.

2. Auto-Credit Facility: The interest received every month is automatically transferred to your post office savings account or bank account (through ECS/NACH). You do not need to go to the post office every month.

3. Re-investment option (extra earnings from RD): If you do not need the monthly interest immediately, you can start a 5-year Recurring Deposit (RD) in the post office with that interest. With this, you will also start earning interest on your interest and will get the additional benefit of compounding.

4. Account in the name of minor: This account can also be opened in the name of a minor above 10 years of age, which can be operated by the guardian.

5. Transfer facility: In case of change of job or city shift, you can easily transfer your MIS account to any post office in the country.

Although this account is opened for 5 years, in case of emergency it can be closed midway also. For this the Postal Department has set some conditions:

• Withdrawal of money is not allowed for the first 1 year of account opening.

• If the account is closed between 1 year to 3 years, the balance is refunded by deducting 2% of the principal amount.

• If the account is closed between 3 years to 5 years, 1% is deducted from the principal amount.

To avail the benefit of Post Office Monthly Income Scheme, one has to go to the nearest post office and fill Form-1. The following documents are mandatory along with it:

• Proof of identity and address (self-attested copy of Aadhar Card and PAN Card).

• 2 recent passport size color photographs.

• Check or cash for lump sum deposits (cheque mandatory for larger amounts).

• Copy of Post Office Savings Account Passbook for interest transfer.