Earn ₹9,250 Monthly with This Post Office Scheme for Couples: Invest ₹15 Lakhs

When it comes to secure investment options that provide a steady income, the Post Office Monthly Income Scheme (POMIS) stands out as a reliable choice for individuals, especially for couples looking for a consistent source of earnings.

This scheme allows couples to invest a lump sum amount and receive guaranteed monthly returns, ensuring financial stability without the risks associated with market fluctuations.

In this article, we will delve deep into how couples can invest ₹15 lakhs in this scheme and earn a monthly income of ₹9,250, along with its features, benefits, eligibility criteria, and more.

What is the Post Office Monthly Income Scheme (POMIS)?

The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme offered by India Post. It is designed for individuals who want to receive a fixed monthly income from their investments.

Since it is supported by the government, POMIS is considered a safe and low-risk investment option, making it ideal for couples, senior citizens, and anyone looking for guaranteed returns without exposing their savings to volatile markets.

How Does POMIS Work?

POMIS allows investors to deposit a lump sum amount for a fixed tenure, and in return, they receive a fixed interest amount every month. This interest is paid directly into the investor’s linked savings account, providing them with a regular monthly income.

For a couple investing ₹15 lakhs, the scheme pays out an interest rate (which can vary periodically, but as of now, it stands around 7.4% per annum). Based on this rate, a couple can expect to earn approximately ₹9,250 every month.

Here’s a breakdown of how it works:

• Investment Amount: ₹15 lakhs (the maximum limit for joint accounts).
• Interest Rate: Currently around 7.4% per annum.
• Tenure: 5 years (renewable after maturity).
• Monthly Income: ₹9,250 (calculated based on the current interest rate).

Eligibility Criteria for POMIS

To invest in the Post Office Monthly Income Scheme, there are some eligibility conditions that you must meet:

1. Individual Investors: Any Indian resident above the age of 18 can invest in this scheme.
2. Joint Accounts: Couples can open a joint account and invest up to ₹15 lakhs. Both partners will have equal ownership of the account.
3. Number of Accounts: You can open more than one account, but the total investment across all accounts must not exceed the maximum limit.
4. Minors: Parents or guardians can open accounts on behalf of minors. Once the minor reaches 18 years of age, the account is transferred to their name.

Benefits of POMIS for Couples

1. Guaranteed Monthly Income: One of the biggest advantages of POMIS is that it provides guaranteed monthly payouts. For couples who want a regular source of income to manage household expenses, this scheme offers a predictable and consistent cash flow.
2. Low-Risk Investment: Unlike equity markets or mutual funds, POMIS is a low-risk option as it is backed by the Indian government. This ensures that your principal amount is safe, and you receive regular returns.
3. Joint Investment: Couples can jointly invest up to ₹15 lakhs, making it easier to manage and consolidate savings. This also ensures that both partners can benefit equally from the scheme.
4. Hassle-Free Process: Opening a POMIS account is simple and can be done at any post office across India. It doesn’t require complicated paperwork or online procedures, making it easy for everyone, especially senior citizens.
5. Automatic Credit to Savings Account: The monthly income is automatically credited to your linked savings account. This eliminates the need to manually collect interest payments.

How to Open a POMIS Account

Opening a POMIS account is a straightforward process that can be done at any India Post branch. Follow these steps to open an account:

1. Visit Your Nearest Post Office: You can open a POMIS account at any post office branch in India.
2. Fill Out the Application Form: Ask for the Post Office Monthly Income Scheme application form and fill it out with your details.
3. Provide KYC Documents: Submit necessary KYC documents such as Aadhaar card, PAN card, passport-size photos, and address proof. For a joint account, both partners need to provide their documents.
4. Deposit the Investment Amount: You can make the investment via cash, cheque, or demand draft. For a joint account, the maximum investment is ₹15 lakhs.
5. Link Your Savings Account: Ensure that your savings account (either post office savings or bank savings) is linked to your POMIS account. The monthly interest will be credited to this account.
6. Receive Your Passbook: Once the account is opened, you will receive a passbook that contains all the details of your POMIS account.

Interest Rate and Payout Calculation

As of the current financial year, the interest rate for POMIS is 7.4% per annum. This rate is reviewed every quarter by the government and may change periodically. Let’s calculate the monthly income for a ₹15 lakh investment based on this interest rate:

• Annual Interest: ₹15,00,000 x 7.4% = ₹1,11,000
• Monthly Interest: ₹1,11,000 ÷ 12 = ₹9,250

This means that if a couple invests ₹15 lakhs, they will receive ₹9,250 every month for the next five years.

Maturity and Reinvestment Options

The tenure for POMIS is five years. After this period, you have the following options:

1. Withdraw the Principal Amount: At the end of the five-year tenure, you can withdraw the full amount of ₹15 lakhs.
2. Reinvest in POMIS: If you wish to continue earning a monthly income, you can reinvest the amount into a new POMIS account for another five years. The interest rate at the time of reinvestment will apply.
3. Invest in Other Post Office Schemes: After maturity, you can also choose to invest in other post office schemes such as Senior Citizen Savings Scheme (SCSS), Public Provident Fund (PPF), or National Savings Certificate (NSC).

Tax Implications

While the principal amount you invest in POMIS is safe and secure, it’s important to understand the tax implications:

1. No Tax Benefits on Investment: Unlike Public Provident Fund (PPF) or National Savings Certificate (NSC), POMIS does not offer any tax deductions under Section 80C of the Income Tax Act.
2. Tax on Interest: The interest earned from POMIS is fully taxable. The amount is added to your total income and taxed according to your income tax slab.
3. No TDS: The Post Office does not deduct Tax Deducted at Source (TDS) on the interest earned. However, you must declare the interest income when filing your income tax return.

Who Should Invest in POMIS?

POMIS is an excellent investment option for:

1. Retired Couples: Retired couples can benefit greatly from POMIS as it provides them with a fixed monthly income, which can help cover their living expenses.
2. Risk-Averse Investors: If you prefer safety and don’t want to expose your savings to market risks, POMIS is an ideal choice. The guaranteed returns make it a secure option for conservative investors.
3. Supplementary Income Seekers: If you’re looking to supplement your existing income with an additional source, POMIS can provide a steady monthly payout.
4. Senior Citizens: Senior citizens who don’t want the hassle of monitoring market-linked investments can rely on POMIS for peace of mind and regular income.

Limitations of POMIS

While POMIS has many advantages, it also has some limitations:

1. Low Returns Compared to Equity Investments: The returns from POMIS are fixed and comparatively lower than equity-linked savings schemes or mutual funds.
2. No Tax Benefits: POMIS does not provide any tax-saving benefits under Section 80C, which may be a disadvantage for those looking for tax-efficient investments.
3. Fixed Tenure: The five-year lock-in period means that you cannot withdraw your money before maturity without incurring a penalty.
4. Interest Rate Subject to Change: Although the interest rate is currently 7.4%, it can be revised by the government every quarter. Therefore, future investments may yield lower returns if the rates are decreased.

Conclusion

The Post Office Monthly Income Scheme (POMIS) is an excellent option for couples looking for a secure and reliable source of monthly income. By investing ₹15 lakhs, you can earn a guaranteed ₹9,250 per month, which can help with household expenses or other financial needs.

It is a low-risk investment backed by the Indian government, making it one of the safest ways to generate regular income.

While it may not offer the highest returns compared to market-linked investments, the safety and stability of POMIS make it a preferred choice for risk-averse investors. Before making any investment decision, it’s essential to assess your financial goals, risk tolerance, and investment horizon.