If you are looking for long-term investment options that are safe, secure, and deliver good returns on retirement, post office schemes are the best for you. It is the best option for someone when they want their money to be invested in a safe and secure place. If you are planning your retirement, this news is for you.
From time to time, the India Post announces different investment schemes which can be availed for a better retirement planning. One such scheme is the monthly income scheme (MIS) which will provide you a monthly pension after you retire. Moreover, you don't need to invest in it every month. All you have to do is put a lump sum amount in it and avail maturity benefits after you retire.
At present, the scheme is offering 6.6% annual interest. To avail maximum benefits, you can also opt for a joint account. For the monthly income scheme, three people can open a joint account.
An account can be opened with a minimum of Rs. 1000 and in multiple of Rs. 1000. The scheme has a maximum investment limit of Rs 4.5 lakh in a single account and Rs 9 lakh in a joint account. For calculation of the share of an individual in a joint account, each joint holder has an equal share in each joint account. This means that one person cannot invest more than Rs 4.5 lakh whether it is a single or joint account.
By investing just Rs 50,000, you can earn an annual pension of Rs 3,300. The interest on the amount will be paid on completion of a month from the date of opening and so on till maturity.
Other features
- You can not withdraw your deposit before 1 year from the date of deposit.
- If the account is closed after 1 year and before 3 years from the date of account opening, a deduction equal to 2 percent from the principal will be deducted and the remaining amount will be paid.
- If the account closes after 3 years and before 5 years from the date of account opening, a deduction equal to 1 per cent from the principal will be deducted and the remaining amount will be paid.
- In case the account holder dies before the maturity, the account may be closed and the amount will be refunded to nominee/legal heirs.
- Interest will be paid up to the preceding month, in which a refund is made.
