Post Office Scheme Offers ₹9,250 Monthly for 5 Years – Here’s How to Maximize Your Earnings
Post Office Scheme Offers ₹9,250 Monthly for 5 Years - Here's How to Maximize Your Earnings
Many people are turning to investments to secure their financial future. Similar to banks, the post office offers a variety of investment schemes. Let’s explore how you can earn through these options.
The Post Office Monthly Income Scheme (MIS) is designed to provide a steady monthly income, making it particularly beneficial for senior citizens. If you lack a regular income after retirement, investing a lump sum in this scheme can help arrange a consistent income through interest payments. With this scheme, you can earn up to ₹9,250 per month for five consecutive years. However, what if you wish to continue earning beyond the five-year period? Let’s delve into the unique features of this scheme.
The Post Office MIS has fixed deposit limits for single and joint accounts. A maximum of ₹9,00,000 can be deposited in a single account, while a joint account can accommodate up to ₹15,00,000. The MIS offers an interest rate of 7.4%. Your monthly income is determined by the amount deposited. For instance:
Single Account: Depositing ₹9,00,000 can yield up to ₹5,550 per month at a 7.4% interest rate.
Joint Account: Depositing ₹15,00,000 with a spouse or family member can generate a maximum of ₹9,250 per month.
Account Tenure and Renewal: Post Office MIS accounts have a tenure of five years. The deposited amount remains locked in the account for the duration, during which you earn interest on it. After five years, you receive your principal amount back. There is no provision for extending the term in this scheme. If you wish to continue earning income, you can withdraw the amount upon maturity, open a new account, and reinvest the funds to generate income for another five years.
Eligibility and Account Opening: Any citizen of the country can open an account under the Post Office Monthly Income Scheme. Additionally, you can open an account in your child’s name. If the child is under 10 years of age, parents or legal guardians can open the account on their behalf. Once the child reaches 10 years old, they gain the right to manage the account themselves.
Requirements: To open an MIS account, you must have a savings account at the post office. Additionally, an Aadhaar card and PAN card are mandatory for identity verification.
By leveraging the Post Office Monthly Income Scheme, you can ensure a reliable income stream while also having the flexibility to reinvest and continue earning beyond the initial five-year period.
