The Post Office Savings Scheme is a central government-backed guaranteed income scheme. It is a small savings scheme in which people mostly from the middle and lower tiers of the financial pyramid repose huge trust and deposit their hard-earned money. Millions also use it as a sort of a source of pension.
Therefore, it is also easy to see why many senior citizens without a regular income, for whom the security of capital is the top priority, choose to invest their money in this instrument.
Let’s see what it can earn for you every month.
The current rate of interest in Post Office MIS is 7.4%. It has been held steady at that rate since April 1, 2023.
Post Office calculator
Payout for Rs 1 lakh investment
The Post Office MIS calculator will tell you that if you invest Rs 1 lakh in an account it will generate for you Rs 616.67 every month for five years.
Payout for Rs 2/3 lakh investment
If you raise the investment to Rs 2 lakh, the payout per month will be Rs 1,233.34.
For an investment of Rs 3 lakh, one would be getting Rs 1,850 every month.
Payout for Rs 5 lakh investment
The amount would rise to Rs 3,083.35 every month if one invests Rs 5 lakh in the Post Office MIS.
Maximum payout for a single account
The amount would be Rs 5,550.03 if one keeps the maximum Rs 9 lakh in the MIS opened in the name of a single individual.
Payout for joint accounts
However, if one opens it jointly with another person, the maximum investment is Rs 15 lakh. If Rs 15 lakh is invested in this scheme, the account holder would get an interest payout of Rs 9,250.05 every month and the payment would continue from the 1st to the 60th month, when the 5th year ends, bringing the plan to maturity.
Premature withdrawal penalty
However, one must remember that withdrawing the principal before the term of 5 years is discouraged and attracts a financial penalty. To begin with, no withdrawal is permitted in the first year.
If the account is closed between 1 and 3 years, a 2% penalty is imposed on the principal amount. The penalty reduces to 1% if the account is closed between the 4th and 5th year.
Post Office calculator: Post Office schemes are trusted by millions of Indians for the security it provides. The Monthly Income Scheme is often used by many as a source of pension. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
