The Post Office Monthly Income Scheme (POMIS) has evolved as one of the most popular investment programmes for individuals of all ages throughout the years. Account holders of the dependable government programme are assured of a consistent monthly payout. The user's savings account receives interest payments every month.
Not only do members get a steady stream of money each month, but their initial investment is protected under a government backed programme. When the five-year plan ends, the account holder gets their initial investment back.
Maximising total returns from an adult's savings account interest may be done by setting up a recurring deposit (RD) with the same monthly payments from the monthly income plan. The returns on a regular deposit account at the post office are competitive. Interest at 5.8 percent per year RD is compounded quarterly. At maturity, an investor will earn interest on the MIS scheme as well as the RD on the investment amount of Rs 4.5 lakh.
Post Office Monthly Income Scheme calculation
Rs 4,50,000 (principal) + [Rs 2475 (interest per month ) x 60 months] = Rs 5,98,500 (Rs 4,50,000 + 148500 interest accrued)
60-month recurring deposit (5 years) at 5.40%
Rs 2475 Recurring Deposit for 60 Months = Investment Total Rs 2475 x 60 month = Rs 1,48,500 | Interest Earned = Rs 22,201
Return on RD = Rs 1,48,500 + Rs 22,201 = Rs 1,70,700
Features
Anyone interested in investing in the Monthly Income Scheme is limited to making a single contribution of up to Rs. 4.50 lakh. In addition to opening the programme with a single Rs 9 lakh deposit, a joint account may be formed. Beginning on the first day of the month after the opening date and continuing monthly until maturity, interest will be paid on the closing date. The interest earned in a savings account is available for withdrawal at any time. Be aware, however, that if the monthly interest due is not claimed by the account holder, the interest will not accumulate.
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An account may be opened by any single adult, a legal guardian on behalf of a minor, or a child over the age of 10 under his or her own name.
After 5 years, you may end your account at any post office by submitting a specified application form and your passbook. The account may be terminated and the balance paid out to the beneficiary or nominee if the account holder passes away before the account matures. Interest accrues from the month prior to the month the refund is issued.
