Most of the people in India want that even if they get low interest on their deposits, but the money should be absolutely safe. Such people can keep money in the Post Office Monthly Income Scheme (POMIS), a government small savings scheme that allows investors to earn a fixed amount every month.
In fact, investors have a trust relationship with the post office in India. If you want to invest for 5 years, then Post Office Monthly Income Scheme (POMIS) is a better option for you. After investing in this scheme, you will have a fixed income every month, and your money will also be completely safe. In this scheme, along with keeping the money safe, the interest is also higher than the banks.
In the Monthly Savings Scheme (MIS) of the Post Office, you can invest a minimum of Rs 1,000 and a maximum of Rs 4.5 lakh through a single account. The maximum amount limit in a joint account is up to Rs 9 lakh. That is, both husband and wife together can invest up to Rs 9 lakh in a joint account. This scheme is very beneficial for retired employees and senior citizens.
Not only this, you can deposit in this scheme in the name of a minor, but up to Rs 3 lakh can be invested in such an account. A separate POMIS form has to be filled in the post office for deposit in this scheme. Before investing in this scheme, the customer has to open a post office savings account.
The Post Office Monthly Income Scheme (POMIS) currently offers 6.6 percent annual interest. Which are better than other fixed deposits and options. While filling the POMIS form, you will need identity proof, residential proof, 2 passport size photographs. A nominee is needed.
Duration of the scheme
The maturity period of this post office scheme is 5 years. If you withdraw money before time then you may have to suffer loss. There is no provision for withdrawal within one year. If you withdraw money before 3 years, you have to pay a penalty of 2 percent. On withdrawal within 3 years to 5 years, an amount of 1 percent is deducted.
Benefits of this account
You can get this account shifted from one post office to another. You can reinvest the amount after 5 years of maturity. In this, a nominee can be appointed, so that the nominee can get the amount in case of an accident. TDS is not deducted in MIS scheme, but tax has to be paid on interest.
How is the amount coming into the monthly account determined?
For example, if you deposit Rs 4,50,000 lakh through a single account in the Post Office Monthly Income Scheme, the total interest will be Rs 29,700 at an interest rate of 6.6 per cent per annum. Which will be Rs 2475 per month. That is, an investment of Rs 4,50,000 will get interest of Rs 2475 every month.
At the same time, 9 lakh rupees have been deposited in the Post Office Monthly Income Scheme through a joint account. According to the interest rate of 6.6 percent per annum, the total interest on this amount will be Rs 59,400. In this way, the interest of every month will be around Rs 4950.