Investors are earning a 7.4 per cent interest rate on this scheme at present.
The Post Office Monthly Income Scheme matures after 5 years, but it offers an option for premature closure.
Post office schemes are accessible to individuals from various socioeconomic backgrounds. These schemes are government-owned, ensuring their safety and providing attractive returns. If you’re concerned about securing a steady income after retirement, the post office offers a solution. You can generate a reliable monthly income by participating in their schemes. It’s even possible to open this account jointly with your spouse. The Post Office provides a specialised program for this purpose, known as the Post Office Monthly Income Scheme.
This scheme allows you to make a one-time investment and receive a monthly pension, with the amount being derived solely from the interest on your deposited sum. Under this plan, you can receive a monthly pension of Rs 9,250. If you opt for an individual investment, the maximum amount you can invest is Rs 9 lakh. If you choose to open a joint account with your spouse, the total investment limit increases to Rs 15 lakh. Presently, investors are earning a 7.4 per cent interest rate on this scheme.
In the scenario where you can invest in a joint account with your wife, the annual interest on the Rs 15 lakh investment will be Rs 1,11,000. Consequently, every month, you’ll receive a pension of Rs 9,250, which is derived solely from the interest earned. Notably, your initial investment remains secure with the post office, and you have the option to withdraw the principal amount after the maturity period. You can choose to extend the scheme for an additional 5 years if you wish. It’s important to note that this account can also be opened with three individuals. In such a case, the returns would be distributed equally among all three account holders.
The Post Office Monthly Income Scheme matures after 5 years, but it offers an option for premature closure. You can make a withdrawal after just one year from the date of deposit. If you choose to withdraw funds between one to three years, there will be a 2 per cent deduction from the deposited amount. If you decide to withdraw after three years, the deduction reduces to 1 per cent.
Source: News18