We are all looking for investment instruments that are not only safe but also pay high-interest rates. The government-run Post Office Monthly Income Scheme (POMIS) is one of the micro-savings investment plans that provide investors with guaranteed monthly income.
Because it may be started with a small sum, this program is one of the most popular investment alternatives in India. MIS is a low-risk investment choice with a 5-year investment period. The Post Office Monthly Income Scheme now offers a 6.6 percent annual interest rate.
Benefits of Post Office monthly income scheme:
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Investors' money is not exposed to market risk, making the plan a low-risk investment popular with conservative investors. Because this is a government-backed plan, the investments are also guaranteed till maturity.
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The monthly income scheme has a 5-year lock-in term. If you choose to continue investing, you can withdraw and re-invest whenever the investment matures.
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You may begin with a minimal investment of Rs 1,000, which can be multiplied over time.
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It is important to note that MIS income is subject to taxation. Investments in the Post Office scheme are not tax-deductible under section 80C. It does not, however, have TDS.
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You will start receiving payments from this plan after the first month of investing in it. The payment, on the other hand, will be made at the end of each month, rather than at the beginning.
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The returns on investments in the monthly income scheme earn guaranteed monthly rewards in the form of interest. Having said that, experts note that returns do not surpass inflation.
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Even if you own multiple accounts as an investor, the total deposit amount cannot exceed Rs 4.5 lakhs.
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You may also register a joint account with MIS with a maximum of three persons. Keep in mind, however, that the account will belong to all account holders equally, regardless of who contributes.
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An account can be established on behalf of a minor who is 10 years old or older. After reaching the age of 18, the minor will be entitled to access the funds.
