The Post Office conducts savings schemes for different age groups and categories. While providing generous returns, it also ensures the safety of your investment. One of these special schemes is the Post Office Monthly Income Scheme which provides income to investors on a monthly basis. In this case, if you are planning to start investing during Diwali, then this might be a better option.
The returns on this monthly income plan from the Post Office are also very good. The government provides 7.4% interest for the scheme. The most important thing about this plan is that by investing in it, your monthly income stress will end. The government scheme has a five-year tenure and funds can be withdrawn from the account one year after opening. Here you can open an account with just Rs 1000.
The investment limit for account holders investing under the Post Office Monthly Savings Scheme (POMIS) is Rs 9 lakh. If we talk about joint accounts, the maximum limit has been fixed at Rs 15 lakh. Let us tell you that this limit was only increased and implemented last year on April 1, 2023. This is a single investment plan where you can arrange for yourself a guaranteed income every month after investing.
In this plan, you cannot close your account for one year after opening it. There is a 2% fee if you close your Post Office Monthly Income Scheme account three years ago, and a 1% fee if you close your account after three years and five years ago.
In this plan of the post office, monthly income is guaranteed through a lump sum investment and if the monthly income is calculated, then if you invest Rs 5 lakh for five years, then you will get an interest rate of 7.4%. From the interest received therefrom, there will be an income of Rs 3,084 per month. If we consider the maximum limit of Rs 9 lakh for individual account holders, then the monthly income will be Rs 5,550. In addition to monthly, you can also earn this interest income quarterly, semi-annually, or annually.
Opening an account under Monthly Income Scheme (MIS) is very simple. To do this, you can go to the nearest post office and submit your application along with the necessary documents to the post office. Applicants can collect the account opening form from the post office and submit it along with the KYC form and PAN card. If you are a joint account holder, you must also submit KYC documents. Also, remember to enter all information correctly when filling out the account opening form.