If you are also worried about your future, cant figure out what to do? Then today’s article is just for you. The government provides a range of savings options through the post office, ensuring safe and guaranteed returns. One notable option is the Post Office Monthly Income Scheme (POMIS), which is a dependable choice for investors. It typically offers higher interest rates compared to traditional bank fixed deposits. A unique feature of this scheme is that investors receive monthly interest payments based on their initial lump sum deposit.
Understanding the monthly income through calculations
Currently, POMIS offers an annual interest rate of 7.4%. For instance, if an investor puts in a lump sum of Rs 9 lakh for a duration of 5 years, they can expect to earn Rs 3,33,000 in interest, translating to a monthly income of Rs 5,550. At the end of the five years, investors have the option to either withdraw their principal amount or extend the scheme for an additional five years.
Investment limits and maturity choices
Under POMIS, individuals can invest a maximum of Rs 9 lakh in a single account and up to Rs 15 lakh in a joint account. Upon maturity, investors can choose to extend the scheme for another five years or withdraw their original investment.
Key points to consider about the scheme
Before committing to POMIS, it’s essential to understand the associated rules. The scheme allows for early closure under specific conditions. Investors can withdraw their funds after one year, but if they withdraw within the first year, a penalty of 1% of the principal will apply. For withdrawals made between one and three years, a deduction of 2% from the deposit amount will be incurred.
