Monthly Income Scheme: Earn ₹9,250 Monthly! Post Office Scheme Explained, But Beware of This ₹30,000 Penalty
Monthly Income Scheme: For those seeking a safe, reliable, and government-backed investment that provides a steady monthly income, the Post Office Monthly Income Scheme (POMIS) is an excellent choice. This scheme is particularly popular among retirees and individuals looking for a risk-free way to supplement their earnings. It offers an attractive interest rate and guaranteed returns, making it a cornerstone of many financial plans.
Understanding the Post Office Monthly Income Scheme (POMIS)
The POMIS allows you to invest a lump sum amount and receive a fixed interest income every month. It is a secure investment as it is backed by the Government of India. Currently, the scheme offers an impressive interest rate of 7.4% per annum, paid out monthly.
The investment limits for this scheme were recently updated, allowing for greater returns:
- Single Account: You can invest a maximum of ₹9 lakh.
- Joint Account: The maximum investment limit is ₹15 lakh. A joint account can be held by up to three adults.
How to Earn a Monthly Income of ₹9,250
Achieving a monthly income of ₹9,250 is straightforward with a joint account. By investing the maximum permissible amount of ₹15 lakh in a joint POMIS account, you can take full advantage of the 7.4% annual interest rate.
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Join on TelegramHere’s the calculation:
- Total Investment: ₹15,00,000
- Annual Interest Rate: 7.4%
- Annual Interest Earned: ₹15,00,000 x 7.4 / 100 = ₹1,11,000
- Monthly Income: ₹1,11,000 / 12 = ₹9,250
This guaranteed monthly payout can provide significant financial stability for households and senior citizens.
Important Rules and Penalties to Consider
While the POMIS is an attractive scheme, it’s crucial to be aware of the rules regarding premature withdrawal. The account has a lock-in period of 5 years. If you need to withdraw your funds before the maturity date, certain penalties will apply.
| Withdrawal Period | Penalty on Principal Amount |
|---|---|
| Between 1 year and 3 years | 2% |
| Between 3 years and 5 years | 1% |
For instance, if you have invested ₹15 lakh in a joint account and decide to close it after two years, a 2% penalty will be levied on your principal amount. This means a deduction of ₹30,000 (2% of ₹15,00,000), and you will receive ₹14,70,000 back. Therefore, it is highly advisable to invest funds that you are certain you will not need for the next five years to avoid such losses and maximize your returns. This scheme cannot be closed within the first year of opening.
