Know about this scheme of the post office! The best option for those looking to earn income while sitting, offers 7.4 percent interest rate to investors

Post Office Monthly Income Scheme (POMIS) is the highest earning, low risk and guaranteed return savings scheme of the Post Office. Under this scheme, interest is given at the rate of 7.4 percent.

In this scheme the investor can deposit money every month. The best thing about this scheme is that no TDS is deducted on the interest received in it. This scheme is recognized by the Ministry of Finance like other post schemes. Therefore there was no risk for investors.

How much investment can you start with?
You can start with a nominal investment of Rs 1,000 as per your financial capacity and then open an MIS i.e. Monthly Investment Scheme account in the post office in multiples of Rs 1,000. The maximum investment limit in a single account in Post Office MIS account is Rs 9 lakh. Whereas the maximum deposit limit for joint account is up to Rs 15 lakh.

maturity period
The maximum lock-in period for Post Office MIS account is 5 years. After the scheme matures, investors can withdraw the investment amount or reinvest it. Investors cannot withdraw the deposited amount before the period of 1 year from the date of deposit.

Investors may be penalized if the investment amount is withdrawn before the end of the lock-in period. If the account is closed before three years from the date of account opening, 2 percent of the principal amount will be deducted and if the account is closed before 5 years, 1 percent of the principal amount will be deducted.

nominated
The investor can nominate a beneficiary to claim the benefits and funds in the event of the individual’s death. It is important to note that a nominee can be appointed even after the account is opened. An Indian resident can open a PMIS account for a minor child aged 10 years and above. However, the child can withdraw the funds after he attains the age of 18 years.