Post Office Monthly Income Scheme : The Monthly Income Scheme run by the Department of Posts is an ideal investment option for those who want to receive regular monthly income while keeping their lump sum capital safe. This scheme is especially beneficial for retired persons, senior citizens and those who need fixed income every month. In today’s unstable financial environment when the stock market and other investment options fluctuate, this post office scheme presents a stable and reliable option.
The biggest feature of this scheme is that it comes with a government guarantee, so investors do not have to worry about the safety of their money. This is an ideal solution for people who want a source of income in addition to pension.
Scheme Rules and Eligibility Criteria
There are some specific terms and conditions to participate in the Post Office Monthly Income Scheme. The first and foremost condition is that only Indian citizens can open an account in this scheme. This scheme is primarily designed keeping senior citizens in mind, although people of other age groups can also avail its benefits.
Investors can open a single account or a joint account as per their requirement and convenience. The investment amount in the scheme should be in multiples of thousand rupees, which gives investors the flexibility to choose the amount as per their financial capacity. It is important to understand all the terms and conditions carefully while opening an account.
Investment limit and amount arrangement
The investment limit in this scheme is determined on the basis of the type of account. Single account holders can invest a maximum of Rs 9 lakh, while in a joint account of husband and wife, investment of up to Rs 15 lakh is possible. This scheme provides the facility to people with different financial conditions to invest according to their needs.
The minimum investment amount has also been fixed so that even small investors can take advantage of this scheme. After depositing the lump sum amount, the investor starts receiving regular monthly income, which is helpful in meeting their financial needs.
Calculation of Monthly Pension and Income
The monthly income received in the Post Office Monthly Income Scheme is determined on the basis of the amount invested and the current interest rate. On investing a maximum of Rs 9 lakh in a single account, an income of about Rs 5550 per month is obtained. On the other hand, on investing Rs 15 lakh in a joint account, a monthly income of Rs 9250 is obtained.
This becomes a stable and reliable source of income for investors. Currently, the interest rate applicable is 7.4 percent, which is revised from time to time as per government policies. This interest rate is quite attractive compared to other safe investment options.
Key features and benefits of the scheme
Several features of this scheme make it an attractive investment option. Most importantly, it comes with a full government guarantee, providing financial security to investors. The tenure of the scheme is five years, which is a reasonable time frame. There is no special tax on the investment and income received in this scheme, which makes it even more beneficial.
The biggest advantage of this scheme is the regularity of monthly income. Investors can plan their monthly expenses as they know that they will get a fixed amount every month.
Account opening procedure and documents required
Opening an account in the Post Office Monthly Income Scheme is a simple process. First of all, you have to go to your nearest post office and get the scheme related form. After filling all the necessary information in the form, you have to attach identity proof, address proof, photo and other necessary documents with it.
The account is opened after document verification and a passbook is provided after depositing the investment amount. The entire process takes a few days, but it is absolutely safe and transparent.
Disclaimer: This article is written for general information purpose only. Interest rates, terms and conditions may change from time to time. Before investing please get the latest information from the nearest post office and read all the terms and conditions of the scheme carefully.
