THIS Post Office investment scheme offers monthly pension, full return on maturity; Check interest rate, return calculator

This scheme is good for people who have a low investment appetite and want a risk-free product.

The current market is full of investment instruments and while investors often make diverse investment decisions, many people look for options which are risk-free, offer guaranteed returns and suit their appetite. When it comes to risk-free investment instruments, people often prefer government-backed schemes be it a fixed deposit, Public Provident Fund or schemes of the post office. India Post also offers a host of investment instruments which gives investors a risk-free option but these come with a comparatively low return in the range of 6-7 per cent per annum. The Monthly Income Scheme by the post office is one such scheme. 

Post Office Monthly Income Scheme Interest Rate 2022

The Post Office Monthly Income Scheme (POMIS) is offering a rate of interest of 6.7 per cent per annum. This scheme comes with a lock-in period of five years and the maximum investment limit is Rs 4.5 lakh for a single account and Rs 9 lakh for a joint account.

Interest is payable on completion of a month from the date of opening and so on till maturity. However, if the interest payable every month is not claimed by the account holder, such interest shall not earn any additional interest.

Post Office Monthly Income Scheme Pre-closure and Maturity

According to India Post, no deposit shall be withdrawn before the expiry of one year from the date of deposit. If an account is closed after one year and before 3 years from the date of account opening, a deduction equal to 2% from the principal will be applicable and the remaining amount will be refunded.

The account will mature when it completes five years and then it can be closed by submitting a prescribed application form with a passbook at the concerned Post Office.

Post Office Monthly Income Scheme Return Calculator 2022

Suppose you invest Rs 4,50,000 into the post office monthly income scheme for five years, you will get a monthly pension or return of Rs 2,512 or a yearly Rs 30,144. You will continue to get this monthly amount for five years. After five years, the bank will return your Rs 4.5 lakh when you close the account. So, if all this is added together, your net earnings from this investment will be around Rs 6,00,720. 

This scheme is good for people who want a risk-free investment product.