Personal Finance: Due to the volatility of equity market and people who want to get safe returns on investment usually invest in bank FD, post office and other instruments. Investors can earn every month in Post Office Monthly Income Scheme. In which currently 7.40 percent more interest is being given than bank FD.
Post Office Monthly Savings Scheme
This scheme guarantees guaranteed returns. In which you can invest under the facility of single or joint account. Maximum limit in a single account is Rs. 9 lakh and in joint account the maximum is Rs. An investment of Rs 15 lakh can be made. In which you get a fixed return every month. Total as per joint account limit per month Rs. Can earn Rs 9250. The lock-in period is five years.
More than 37 percent return on five year investment
Post Office Monthly Savings Scheme with Spouse Rs. 15 lakh, he will earn 1.11 lakh per annum at the rate of 7.4% per annum. In which at the end of five years a total of Rs. Can earn up to Rs 5.55 lakh. Total Rs. 9250 interest is generated. Which after a lock-in period of five years becomes Rs. Rs 15 lakh represents an estimated return of 37 per cent. If under single account Rs. Rs 9 lakh on monthly investment. Annual interest of Rs 5550 and Rs 66600 is payable. Which in five years will be Rs. 333000 returns.
Who can avail the benefit of this scheme?
Every Indian citizen can take advantage of this scheme. This scheme is not available for NRIs. In which any person above 18 years of age can open an account. Also, you can start this scheme in the name of minor children of 10 years, but the maturity period of the amount received in it is after the child turns 18 years.
Penalty on withdrawal before maturity
There is no interest benefit on withdrawal before one year in Post Office Monthly Income Scheme. If the entire deposit is withdrawn within 1 to 3 years, a penalty at the rate of 2 percent is payable. Whereas, a penalty of 1 percent is imposed on deposit withdrawal within a period of 3 to 5 years.
