Post Office MIS: A scheme that offers a ₹9,250 income from home! But this mistake will prove costly, resulting in a loss of ₹30,000.

By investing in the Post Office Monthly Income Scheme (MIS), you can earn ₹9,250 per month. However, if you make the mistake of withdrawing your funds before maturity, you could lose up to ₹30,000. Learn the full details of the scheme, including interest rates, limits, and rules.

Whenever we think of risk-free investments, the first things that come to mind are various bank and post office schemes. Besides recurring deposits (RDs) and fixed deposits (FDs), the post office also offers several schemes that can provide you with a regular source of income. Today, we'll discuss the Post Office MIS, or Monthly Income Scheme.

This scheme is ideal for those who want a fixed monthly income and don't want to take any risk on their investments. You deposit a fixed amount and earn interest on it. Currently, this scheme offers an interest rate of 7.4%. However, like every scheme, it also has certain terms and conditions. If you don't understand them, you could inadvertently cause significant losses.

How the Post Office Monthly Income Scheme Works

Under this scheme, you have to deposit a lump sum amount for 5 years. Interest is credited to your account every month, generating income for you. After the completion of 5 years, your principal is returned. This way, your money remains safe and you can earn on it.

How to Earn a Monthly Income of Up to ₹9,250

POMIS offers the option to open a single account and a joint account. The deposit limits for both are different. You can deposit a maximum of ₹9 lakh in a single account, but this limit increases to ₹15 lakh in a joint account. If you deposit ₹15,00,000 in a joint account, you can earn ₹9,250 per month at an interest rate of 7.4%.

Calculate the amount

If you invest ₹15,00,000 in a joint account, you will earn 7.4% annual interest. In this case, your monthly earnings will be ₹15,00,000 x 7.4 / 100 / 12 = ₹9,250. ₹9,250 x 12 = ₹1,11,000… Thus, you will earn ₹1,11,000 per year. And in 5 years, you will earn a total of ₹1,11,000 x 5 = ₹5,55,000.

Withdrawing money before 5 years will result in a loss.

If you need money for some reason and want to withdraw it before the 5-year period is over, you can do so, but with one condition. The condition is that you cannot withdraw the money before 1 year. After 1 year, you will be able to withdraw the money, but a premature withdrawal penalty will apply.

Between 1 and 3 years: A 2% penalty will be applied on the amount.
Between 3 and 5 years: A 1% penalty will be applied on the amount.

This is how you will lose ₹30,000.

Suppose you have invested ₹15,00,000 and want to withdraw the money after 2 years, a 2% penalty will be applied. 2 percent of ₹15,00,000 is ₹30,000, resulting in a loss of the entire ₹30,000. If you withdraw the amount after 3 years and before 5 years, you will incur a loss of ₹15,000 at the rate of 1 percent penalty. However, this calculation is based on a deposit of ₹15,00,000. If you invest less than this amount, 2 percent and 1 percent of the amount will be applied accordingly. Therefore, if you invest in the scheme, try not to disturb it for the full 5 years. You will receive your full amount back after 5 years.

Who and how can you open this account?

Opening an account under the Post Office Monthly Income Scheme is very easy. Any Indian citizen can open an account. You can also open an account in your child's name. If the child is under 10 years of age, the parent will operate the account. To open an account, you must have a savings account with the Post Office. Aadhaar card and PAN card are mandatory for ID proof.

Beneficial for Senior Citizens

While anyone can benefit from this scheme, it is particularly beneficial for senior citizens. They can receive a fixed monthly pension amount, which helps them meet their daily needs. Their principal amount remains safe.