Post Office Scheme: In addition to the ups and downs of the stock market, everyone wants to keep their money safe amid the ongoing uncertainty around the world. If you are also looking for a means of guaranteed income every month without any risk, then government small savings schemes are a great option. One of these very special schemes is the Post Office Monthly Income Scheme (POMIS). This scheme assures investors a fixed return every month keeping them away from market risks. If a person invests Rs 15 lakh in this scheme, he will get a fixed amount at home every month. However, before investing such a huge amount, it is very important to understand the rules related to this scheme, the terms of the joint account, taxes and the strict rules for early withdrawal.
Calculate to earn Rs 9,250 per month
Currently, this post office scheme is paying interest at the rate of 7.4 percent per annum. This interest is paid every month. The best part is that the interest rate fixed at the time of opening the account remains fixed for 5 years. Anyone can start investing in it with just Rs 1,000. If we calculate a joint deposit of Rs 15 lakh, the total interest earned in one year at 7.4 percent is Rs 1,11,000. Dividing this over 12 months, the investor gets a fixed income of Rs 9,250 per month. During the lock-in period of 5 years, you can get a total of Rs. You will earn 5.55 lakh only from interest. You will get your entire Rs 15 lakh back on completion of 5 years i.e. on maturity.
15 lakh cannot be deposited alone
Often a question comes in people’s mind that can a single person deposit 15 lakh rupees? The answer is ‘no’. As per the rules, the maximum investment limit for a single account holder has been fixed at Rs 9 lakh. If you want to deposit Rs 15 lakh and get the full benefit of Rs 9,250 per month, you have to open a joint account. A maximum of 3 adults can join a joint account. A maximum deposit of Rs 15 lakh is allowed in this.
Know these rules before investing
It is very important to understand the investment limits before investing money. A joint account has a limit of Rs 15 lakh, but the share of all account holders is considered equal. In any case the total share of the individual (including all MIS accounts) exceeds Rs. 9 lakhs cannot exceed. Many people think that by opening multiple accounts in different post offices they will cross this limit, but this is not possible. This limit is set per person, not per account. Also, the scheme has a strict lock-in period of 5 years. You cannot withdraw your money at all for the first 1 year of account opening.
Tax rules with penalties for early withdrawal
There are strict rules for this if you need money suddenly. If you close the account after 1 year of account opening but before completion of 3 years, 2% amount will be deducted from your principal amount. A deduction of 1 percent of the principal amount will be made if the money is withdrawn after 3 years but before 5 years. Talking about tax, the interest earned from this scheme is fully taxable. This will be added to your total income, which will be taxed as per your tax slab. Also, under the old tax system, there is no exemption under Section 80C.
The objective of this government scheme is to provide investors with a fixed income every month, and not to create a huge fund. One special thing always keep in mind that if you do not withdraw the interest from the account every month, the post office does not give any additional interest on that interest.
