You will get a bumper pension of ₹ 9,250 every month! Your money will be safe in this cool scheme of post office, know the complete mathematics of investment.

If you are looking for a fixed and big income every month while keeping your money safe without any risk, then the Post Office Monthly Income Scheme (POMIS) of the Indian Postal Department can become the best source for you. Investing in this small savings scheme supported by the central government is not affected by market fluctuations. According to the strong annual interest rate of 7.4 percent currently available, if you invest in it by opening a joint account, then you will start earning a regular income of around ₹ 9,250 every month sitting at home.

What is Post Office MIS and why is it so popular?

Post Office Monthly Income Scheme (POMIS) is a very reliable government savings scheme. Its main objective is to guarantee investors a fixed income every month. This is the reason why this scheme is very popular among senior citizens of the country, retired employees and middle class families who want fixed monthly income with low risk. The biggest feature of this scheme is that your principal amount deposited in it remains completely safe and the interest is paid directly into your account every month.

Complete mathematics of every month on investment of ₹ 15 lakh

Any Indian citizen can invest in this scheme through single or joint account. The government reviews its interest rates every quarter. The calculation of profit based on the currently applicable 7.4% annual interest rate is as follows:

• Total Investment (Joint Account): ₹15,00,000

• Interest Rate: 7.4% per annum

• Annual Interest Earnings: ₹1,11,000

• Monthly Income: Approximately ₹9,250

• Total profit in 5 years: ₹5,55,000

The maturity period of this post office scheme is 5 years (60 months). On completion of 5 years, the entire principal amount of ₹ 15 lakh is returned to the investor and during this period he has earned ₹ 5.55 lakh only as interest.

Maximum investment limit and pre-mature closure rules

According to the rules, a person can deposit only up to a maximum of ₹ 9 lakh through his single account, while there is freedom to invest up to ₹ 15 lakh through a joint account (maximum 3 persons). If you need money before maturity, the following rules will apply for closing the account:

1. Under no circumstances can you close your account within the first 1 year of opening it.

2. On closing the account between 1 to 3 years, 2 percent will be deducted from your principal amount deposited.

3. If the account is closed after 3 years and before 5 years, the remaining amount will be returned after deducting 1 percent of the principal amount.

Important things related to tax benefits and account opening

The thing to keep in mind is that no tax exemption is available under Section 80C of the Income Tax Act on investing in this scheme of the post office. The monthly interest received from this scheme is added to your total annual income and tax is payable on it as per your tax slab. However, it is a matter of relief that the Postal Department does not deduct any TDS on this interest amount. Since this is entirely a scheme of the Postal Department, its account can be opened only in the official post office, this facility is not available in any government or private bank.