Post Office Savings Scheme: Most of the investors invest in Post Office Savings Schemes (POSS). It is quite flexible and secure.
Post Office Savings Schemes (POSS) are designed to provide financial security to investors with different income levels. These government-backed schemes offer both protection and attractive returns. If you are concerned about ensuring a steady income after retirement, exploring post office savings schemes can be a smart option.
By investing in these schemes you can enjoy a steady monthly income during your retirement years. Additionally, you can open a joint account with your spouse, which will increase the benefits of these plans. A prime example of this is the Post Office Monthly Income Scheme (POMIS), which guarantees regular payments in your retirement.
With POMIS, you invest once and receive monthly payments, determined by the interest generated from your initial deposit. For example, by individually investing Rs 9 lakh, you can get 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 get the same monthly payout. Currently, this plan offers an annual interest rate of 7.4 percent, and you can start receiving payments just one month after your initial investment.
Reliable monthly returns
- Higher interest rates compared to other fixed income options like fixed deposits (FD).
- The scheme allows a nominal initial investment, starting from a minimum of Rs 1,000.
- After the lock-in period of five years, you can reinvest the corpus.
Calculating Retirement Income with Post Office Monthly Income Scheme:
If you choose a joint account with your spouse and invest Rs 15 lakh annually, you will get an interest of Rs 1,11,000. As a result, you will receive a monthly payment of Rs 9,250 based on the interest earned. Additionally, your investment is safe with the post office, and you can also withdraw your principal amount on maturity.
Understanding Maturity Period:
The maturity period of Post Office MIS Scheme is five years, with the option to extend it from 5 to 15 years as per your choice. Notably, you can open a joint account with up to three individuals as beneficiaries, and the funds will be distributed equally among them.
Additionally, this plan offers a premature closure option, allowing you to withdraw your investment after one year of account opening. However, if you decide to withdraw the money within the first three years, you will be charged a penalty of 2 percent on the deposit amount. After three years you can withdraw your money with just 1 percent deduction. A different perspective on the latest news
