Post Office Savings Schemes (POSS) have been designed with a focus to provide financial benefits to investors across different income groups. These schemes are secure and offer good returns as they are backed by the government. If you’re concerned about regular income after retirement, Post Office Savings Schemes could be a better option.
You can invest in Post Office schemes and earn a decent income each month after retirement. In addition, you can open an account jointly with your spouse. The Post Office Monthly Income Scheme (POMIS) provides payouts after retirement.
Under this scheme, you can invest once and receive a monthly payout, which is solely based on the interest earned on the deposited amount. You can receive a payout of Rs 9,250 per month by investing Rs 9 lakh individually. However, if you open a joint account with your spouse, you can invest a total of Rs 15 lakh to get the same amount monthly. Currently, the scheme offers an annual interest rate of 7.4 percent. The payout can be received after one month from making the first investment.
Benefits of Post Office Monthly Income Scheme
● Assured returns every month.
● Higher interest rate than other fixed income sources like Fixed Deposits (FDs).
● You can start with a minimal initial investment of just Rs 1,000.
● The corpus can be reinvested after the lock-in period of five years.
Calculation of retirement income via Post Office Monthly Income Scheme
If you have a joint account with your spouse and invest Rs 15 lakh per annum, the interest amount will be Rs 1,11,000. You will receive a payout of Rs 9,250 per month, which is based solely on the interest earned. Additionally, your money will be safe with the Post Office, and after the maturity period, you can also withdraw the principal amount.
Post Office Monthly Income Scheme Maturity?
The maturity period of the Post Office MIS scheme is 5 years. You can extend the scheme from 5 to 15 years depending on your preference. Moreover, it’s worth noting that you can open a joint account with three individuals as beneficiaries, and the money will be distributed equally among them.
Furthermore, you will also have a premature closure option. You can withdraw the money one year after opening the account. However, if you withdraw the money between one and three years, you will have to incur a 2 percent penalty on the deposited amount. After three years, you will receive the money with a 1 percent deduction.
Source By: news18
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