By investing money in a government scheme, you can gain security and a guarantee of returns. There are many such savings schemes offered by the post office. One of the most popular schemes is the Post Office Monthly Income Scheme (POMIS).
Under this scheme, you can deposit a maximum of Rs 9 lakh in an individual account. If you opt for a joint account with your spouse, you can deposit up to Rs 15 lakh. The Post Office Monthly Income Scheme provides investors with monthly interest payments at an annual interest rate of 7.4 percent.
Deposit money for 5 years
The tenure of the Post Office Monthly Income Scheme is 5 years. You can deposit money for this duration, during which interest will be deposited into your account every month.
Features of Post Office Monthly Income Scheme:
- This is a government scheme, ensuring the safety of the investor’s money.
- While the scheme’s duration is 5 years, you have the option to withdraw money before maturity.
- Upon maturity, you can reinvest the principal for another five years.
- Investments can be made in multiples of Rs 1000.
- An individual can deposit a maximum of Rs 9 lakh, while joint accounts can hold up to Rs 15 lakh.
- The scheme offers an interest rate of 7.4 percent.
Loss on premature account closure:
- Withdrawals are not permitted within the first year of account opening.
- If the account is closed between 1 and 3 years from the opening date, a two percent deduction will be applied to the principal amount.
- For closures between 3 and 5 years, a one percent deduction will be applied.
- In the event of the account holder’s death before maturity, the account can be closed, and the amount will be returned to the nominee.
Open an account in the Post Office Monthly Income Scheme:
To open an account under the Post Office Monthly Income Scheme, visit your nearest post office. You’ll need to provide identity proof, proof of address, and two photographs. Deposits can be made via cash or cheque.