Post Office Savings Schemes (POSS) are tailor-made to provide financial security for investors across various income levels. These government-backed schemes offer both security and attractive returns. If you're concerned about ensuring a stable income after retirement, exploring Post Office Savings Schemes might be a smart choice.
Investing in these schemes allows you to enjoy a steady monthly income during your retirement years. Furthermore, you can open a joint account with your spouse, enhancing the benefits of these schemes. A prime example is the Post Office Monthly Income Scheme (POMIS), which guarantees regular payouts in your retirement.
With POMIS, you invest once and receive a monthly payout, determined by the interest generated from your initial deposit. For instance, by investing Rs 9 lakh individually, you can receive a monthly payout of Rs 9,250. However, if you opt for a joint account with your spouse, you can invest a total of Rs 15 lakh to receive the same monthly payout. Currently, this scheme offers an annual interest rate of 7.4 percent, and you can start receiving payouts just one month after your initial investment.
Key benefits of the Post Office Monthly Income Scheme:
• Reliable monthly returns.
• Higher interest rates compared to other fixed income options like Fixed Deposits (FDs).
• The scheme allows for a modest initial investment, starting as low as Rs 1,000.
• After the lock-in period of five years, you can reinvest the corpus.
Calculating your retirement income with the Post Office Monthly Income Scheme:
If you opt for a joint account with your spouse and invest Rs 15 lakh annually, you'll earn an interest of Rs 1,11,000. Consequently, you'll receive a monthly payout of Rs 9,250 based solely on the interest accrued. Additionally, your investment is secured with the Post Office, and upon maturity, you can also withdraw your principal amount.
Understanding the maturity period:
The maturity period for the Post Office MIS scheme is five years, with the option to extend it from 5 to 15 years according to your preferences. Notably, you can open a joint account with up to three individuals as beneficiaries, and the funds will be distributed equally among them.
Furthermore, the scheme provides an option for premature closure, allowing you to withdraw your investment one year after opening the account. However, if you decide to withdraw the money within the first three years, you will incur a 2 percent penalty on the deposited amount. After three years, you can withdraw your money with only a 1 percent deduction.
