Post Office MIS: A scheme that promises to earn ₹9,250 from home! But this mistake will prove costly, resulting in a loss of ₹30,000..

Whenever we think of risk-free investments, the first things that come to mind are various bank and post office schemes. Besides recurring deposits (RD) and fixed deposits (FD), the post office also offers several schemes that can provide you with a regular source of income. Today, we'll discuss the Post Office MIS (Monthly Income Scheme).

This scheme is ideal for those who want a fixed monthly income and don't want to take any risk on their investments. You deposit a fixed amount and earn interest on it. Currently, this scheme offers an interest rate of 7.4%. However, like every scheme, it also has certain terms and conditions. If you don't understand them, you could inadvertently incur significant losses.

How the Post Office Monthly Income Scheme Works

Under this scheme, you have to deposit a lump sum amount for 5 years. Interest is credited to your account every month, earning you money. After 5 years, you get your principal back. This way, your money is protected and you can earn on it.

How to Earn Up to ₹9,250 Monthly Income

POMIS offers the option to open a single account and a joint account. The deposit limits for both are different. You can deposit a maximum of ₹9 lakh in a single account, but this limit increases to ₹15 lakh in a joint account. If you deposit ₹15,00,000 in a joint account, you can earn ₹9,250 per month at an interest rate of 7.4%.

Calculation:
If you invest ₹15,00,000 in a joint account, you will earn 7.4% annual interest. In this case, the monthly income would be ₹15,00,000 x 7.4 / 100 / 12 = ₹9,250. ₹9,250 x 12 = ₹1,11,000… Thus, the annual income would be ₹1,11,000. And the total income over 5 years would be ₹1,11,000 x 5 = ₹5,55,000.

Withdrawing money before 5 years will result in a loss.
If you need money for some reason and wish to withdraw it before the 5 years is over, you can do so, but with one condition: you cannot withdraw the money before 1 year. After 1 year, the facility will be available, but a premature withdrawal penalty will apply.

Between 1 and 3 years: A 2% penalty will be applied to the amount.

Between 3 and 5 years: A 1% penalty will be applied to the amount.
This is how you'll lose ₹30,000.

Suppose you've invested ₹15,00,000 and want to withdraw after 2 years, a 2% penalty will apply. 2% of ₹15,00,000 equals ₹30,000, resulting in a loss of ₹30,000. If you withdraw after 3 years and before 5 years, you'll incur a 1% penalty, resulting in a loss of ₹15,000. However, this calculation is based on a deposit of ₹15,00,000. If you invest less than this amount, 2% or 1% will be applied accordingly. Therefore, if you invest in the scheme, try not to disturb it for the full 5 years. You'll get your full amount back after 5 years.

Who and how can open this account?

Opening an account under the Post Office Monthly Income Scheme is very easy. Any Indian citizen can open an account. You can also open an account in your child's name. If the child is under 10 years of age, the parents will operate the account. To open an account, you must have a savings account at the post office. Aadhaar card and PAN card are mandatory for ID proof.

Beneficial for Senior Citizens
While anyone can benefit from this scheme, it is especially beneficial for senior citizens. Through this scheme, they can receive a fixed amount as a pension every month, which helps them meet their daily needs. Their principal amount is also protected.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.