Top News

Post Office Monthly Income Scheme (POMIS): If you are planning to invest your money for a fixed regular income but not willing to take risk in stock market or mutual funds investments we have an option which is both safe and moderately return-oriented. Amid the existence of market volatility and stock market crashes the Post Office Monthly Income Scheme (POMIS) is emerging as a safe haven for risk-averse investors. With a fixed interest rate of 7.4% per annum and government backing the scheme guarantees a steady monthly income for five years. Why POMIS is best for risk-averse investors? As a part of the scheme any Indian resident including minors (above 10 years of age) can open an account individually or jointly making it an attractive option for families and retirees who wish to have fixed source of income every month. How much money does one get in POMIS? For instance if a couple opens a joint POMIS account and invests Rs 10 lakh they would receive Rs 6167 per month which is credited directly to their post office savings account. Totaling to a interest income of Rs 74004 annually the POMIS offers a reliable income stream without any market exposure. Readers should note that the minimum deposit starts at Rs 1000 and investments must be made in multiples of Rs 1000. How to withdraw from Post Office Monthly Income Scheme? The scheme also provides limited liquidity. While investors can withdraw funds after one year a penalty of 2% applies if done between 1–3 years and 1% after that till maturity. Additionally the deposited amount is returned in full after five years and the monthly interest can be reinvested in recurring deposit schemes for compounding benefits.