In today’s world of rising expenses, managing finances can be challenging, especially for salaried individuals. If you’re seeking a safe and steady monthly income plan in 2024, consider the Post Office Monthly Income Scheme (POMIS). Here’s how you can earn Rs 1.1 lakh annually through POMIS.
What is POMIS?
Post Office Monthly Income Scheme or POMIS is a savings scheme offering monthly income from a lump sum deposit. Interest earned is transferred monthly to your post office savings account. After 5 years, you can withdraw the principal amount or continue the scheme by opening a new account. POMIS allows for both individual and joint accounts, accommodating two or three account holders. In an individual account, you can deposit up to Rs 9 lakh, and in a joint account, the limit is Rs 15 lakh.
Opening an Account:
- Eligibility: Any citizen, including minors (below 10 years with parents or legal guardians), can open a POMIS account.
- Requirements: A savings account in the post office, an Aadhar Card, and a PAN Card for ID proof are mandatory.
- Account Types: Individual and joint accounts are available. You can deposit up to Rs 9 lakh in an individual account and up to Rs 15 lakh in a joint account.
Calculating Rs 1 Lakh Yearly:
- Interest Rate: The current interest rate is 7.4 per cent.
- Joint Account Example: If you deposit Rs 15 lakh jointly, you’ll earn Rs 9,250 every month, resulting in a guaranteed income of Rs 1,11,000 annually.
- Individual Account Example: Depositing a maximum of Rs 9 lakh in an individual account yields Rs 5,550 per month, totalling Rs 66,600 as annual interest.
Premature Closure:
- Timing: No withdrawal is allowed before the one-year anniversary.
- Deductions: If closed after one year but before three years, a 2% deduction applies; if closed after three years but before five years, a 1% deduction is made.
- Closure Process: Submit a prescribed application form with the passbook at the concerned Post Office for premature closure.
POMIS stands out as a secure option for those aiming for a consistent passive income stream. The proposal to extend the free-look period for insurance policies from the IRDAI complements financial planning strategies, providing individuals with diverse options to manage their finances effectively.
