To start with Post Office Monthly Income Scheme, it is important to know what exactly a monthly income is. Whenever we talk about income, income is something, which you get either by business or by the job or it can be simply considered as a separate and specific financial entity. However, here, I am talking about the different monthly income. Here, I am going to discuss the monthly income schemes, which does not need any separate investment.
Types of Saving account in Post Office
- India Post Office Savings Account
- Five Year Post Office Recurring Deposit Account (RD)
- Post Office Time Deposit Account (TD)
- Post Office Monthly Income Scheme Account (MIS)
- Senior Citizen Savings Scheme (SCSS)
- Sukanya Samriddhi Accounts
- Kisan Vikas Patra (KVP)
- National Savings Certificates (NSC)
- 15 year Public Provident Fund Account (PPF)
Key features and Benefits of Post Office Savings Account :
- Make some cash deposit to open post office saving accounts.
- Add nomination to your Post Office Saving Account.
- Transfer facility available to one post office to another.
- Customer can only open one saving account per user.
- Minimum age can be 10 year or above.
- Post Office Saving account can be joint or independently.
- Account require at-least minimum 1 transaction in three years.
- Account holder eligible for Debit card
Overview of Post Office Monthly Income Scheme :
Though you must have heard about the monthly income schemes by different financial institutions but this time, a special scheme has been introduced by the post office, by the name of the post office monthly income scheme. Some people also know this scheme by POMIS. As it was launched, most of the people confused it with passive income, but there is a huge difference between the passive income or post office monthly income scheme. In passive income generation, you have to invest, be it small or large, but you have to invest whereas, in POMIS, you do not have to make any kind of investment.
Let me make it simpler for you. Imagine, you have an amount of 5 lakh in the post office or any other financial institution. You have to do only one thing, I.e., open an account in the Post Office Monthly Income Scheme and deposit this amount in the account. You have to keep this amount in your account for at least five years. You can also keep it after five years also, but it depends on your choice. You will get the interest of minimum of 7.3%, and you can earn about three thousand two hundred and fifty rupees per month. Open the amount matures, or after the completion of five years, you can easily withdraw your total amount from the account.
Why post office monthly income scheme?
- I know, people hardly trust such schemes because of several fake reported cases. But you don’t have to worry about anything if you are planning to invest in this scheme because this is a government-backed scheme and it is almost stupidity to have zero faith in it.
- Once, the scheme matures or attains its maturity period, you can either withdraw it or you can re-invest the money in the scheme.
- This is one of the safest methods of earning the monthly income because your money is absolutely safe from the market risks
- If you are planning to invest in this scheme, you will definitely get the monthly income. So, you don’t have to worry about anything.
- Another most important benefit oPost Office Monthly Income Scheme S is,tax-efficient which clearly means that your money is away from the taxation. The reason being, the investment in post office does not come under the section 80c.
- This scheme has one condition, I.e., you should be a proud Indian. None resident Indian is not allowed to get the benefits from this scheme. If you are an Indian, then only the scheme would be fruitful for you. If your children are of more than 10 years of age, you can invest in their names also.
In a nutshell, it is best to invest in the POMIS. So, grab the opportunity and enjoy the benefits.