Post Office Monthly Income Scheme
If you are a senior citizen and want a stable monthly income, here’s a postal scheme that best answers your query. Monthly Income Scheme offered by Department of Posts. This scheme offers a stable income without touching the principal amount invested. The schemes sailient features are
1). Current interest rates 7.4% p.a which is revised quarterly
2). Interest Payout : Monthly (will be starting after a month of the amount invested)
3). Lock-in period : 5 Years
4). Premature withdrawal : Only allowed after 1 year with a penalty
5). Minimum Investment : Rs 1000/- and above
6). Max Investment : Rs 9 Lakhs (For single person) or Rs.15 Lakhs( If invested jointly)
7). Taxation Point: Interest earned is taxable by the government as er the invested individual tax slab.
The interest earned is the monthly income. The advantage of this scheme is that the principal amount invested is untouched when compared to some Bank Annuity Deposit Schemes wherein interest and principal are paid to the applicant each month(which means that the invested amount will be reducing with passage of time and as a result the interst will become zero one day).
In this Post Office Monthly Income scheme, the applicant invests the amount once and after a month onwards start getting returns every month/quarter(as per choice of the applicant) for a period of 5-8 years. The invested principal amount is not touched. More over it is backed by the government of India which means total safety. It is to be noted that this scheme offers more interest than banks.
For further details, please contact your nearest post office.