Post Office Monthly Income Scheme: Benefits, Features, and more
The post office schemes involve different types that provide several advantages. First, they are risk-free investments that will help generate more returns. The schemes offer high-interest rates for investors, thereby showing ways to ensure a steady income. Besides that, they make feasible methods to overcome financial problems significantly. Anyone who wants to ensure financial protection for their children and families can choose them based on their choices. Moreover, the post office saving schemes in India will help lead a problem less life after retirement. It is ideal for people who want to initiate financial planning in life.
Knowing more about post office monthly income scheme
The post office monthly income scheme is the best investment option for those who want to get some good returns. It has a lock-in period of 5 years and one can withdraw the invested amount after the maturity period. People can open an account with a minimum deposit of Rs.1000 and a maximum of Rs. 4.5 lakhs. Moreover, the scheme allows investors to open a joint account with 2 or 3 more people with an aggregate sum of Rs.9 lakhs. An investor can even appoint a nominee to claim benefits when he/she passes away.
What are the benefits of a post office monthly income scheme?
- Investors can transfer their account from one post office to another post office
- It is possible to reinvest the amount or extend the tenure after the maturity period
- The schemes involve no tax deductions and however, the interest rates are taxable
- A post office monthly income is suitable for both short-term and long-term investment purposes
- High-interest rates that allow investors to generate a guaranteed income
- Low-risks when compared to other investment options
- Nomination facility for account holders
- Minimum deposits which start from Rs.1000
- Withdrawal option is available for investors after one year with a small penalty
Features of a post office monthly income
- Low-Risk: The post office monthly income is the right option for those who are looking for low-risk investments. This is because the money invested is not subject to any market risks and is quite safe allowing investors’ peace of mind.
- Guaranteed Returns: The scheme is the best monthly income scheme because it allows investors to ensure guaranteed returns. It is higher when compared to other investment options.
- Fund Movement: Depositors can move their funds to a recurring deposit account, the post office has recently added this feature.
- Ease of Money/Interest transaction: A depositor can collect the monthly interest directly from the post office. Furthermore, he/she can transfer the amount automatically to his/her savings account.
- Payout: The post office monthly income schemes allow depositors to receive the payout after one month from making the first investment.
- Multiple Account Ownership: It is possible to open more than one post office monthly income scheme. At the same time, the total amount shouldn’t exceed Rs. 4.5 lakhs.
- Reinvestment Option: A person can reinvest his/her money for another 5 years after maturity that will help gain more advantages.
How to calculate monthly income from post office MIS?
A post office monthly income calculator allows investors to know the returns with high accuracy. One should enter the details such as the account type, investment amount, and rate of interest. It will display the monthly income and also any penalty charges for the premature closure of the account.
Investors can use the post office MIS calculator online that gives ways to make an informed decision. Not only that, it allows a person to invest money based on his/her choices. Anyone who wants to deposit money in the POMIS scheme can get more ideas with the help of the calculator.
Knowing more about MIS interest rates
Investors should know more about the post office MIS interest rate before depositing money. This is because the interest rate may vary in a financial year and one should evaluate them while opening an account. The current interest rate available for the scheme is 6.6% per annum allowing investors to generate high returns.
Eligibility criteria to open an MIS scheme
- The scheme is available only for Indian citizens and not for non-resident Indians
- Parents can even open an account on behalf of a minor who is 10 years and above
- A minor can transfer the account to his/her account after attaining 18 years
How to open a post office MIS account?
People who want to open a post office MIS scheme should follow the below instructions.
- The first step is to visit a nearby post office and collect the application form
- A person should submit an application form with ID proof, address proof, and 2 passport size photographs
- An applicant should get the signature of the nominee when adding the name
- One can make the initial deposit by cash or cheque
- The post office authorities will provide the details of the newly opened account to depositors
How POMIS differs from other investment options?
Investors should know how POMIS differs from other investment options. The scheme involves no TDS deductions whereas other schemes such as mutual funds and insurance plans come with a TDS option. Surrendering an insurance policy involves high surrender charges because it is a long-term investment.
POMIS has high flexibility and reliability when compared to other plans. It also comes with a fixed return rate allowing investors to ensure high returns. Mutual funds come with a floating rate depending on the performance of the markets. Furthermore, they have some risks and investors should evaluate them with more attention.
A post office monthly income scheme is the right option for those who want to earn good money with high-interest rates. The only drawback is that it allows only limited investments when compared to other schemes. However, the scheme provides several benefits to depositors by addressing their essential requirements. It is possible to open a POMIS account in a post office easily with proper documents. Before investing money in the scheme, people should know the present MIS interest rate that will help in making an informed decision for proceeding further.