We will cross several monthly income plans in our everyday life. We will invest in some of them. The possibility of exploring which plan is best is not for everyone. Therefore, we are investing on the basis of the advice we receive during our respective needs.
Private investment plans are usually spread by more promotions. But the government has introduced better investment plan than those private. Yet, they do not get enough of the public attraction because of the lack of advertisements. This is one such plan.
150 years old Indian postal department was created during British rule which has wide spread presence all over the country. After Independence, Indian government had started using post office as an agency of government to spread various govt plans. As specified in my previous post (Sir.......India Post.....), India post has started doing various other business.
Postal office Monthly Income Scheme(PO MIS) is one of the government scheme which has been spread using India Post. The main features of this profitable scheme are as follows.
PO MIS provides more interest than FD's. Even though the National Savings certificate (NSC) is more profitable, you can not tap out of it in between 5 years. Moreover, interest will not be available any month.
For who says that I do not need monthly interest, postal department offers more option to go for the long-term investment. You can convert your monthly interest in to a recurring deposit by simply an additional form. In doing so, your interest will be compound. For ex: your 1 lakh in 5 years will change to 1.45 lakhs.
This is just another set of people who wants their Investment to be safe and at the same time the returns should be higher. These people will be able to earn a higher return on investments by investing the monthly interest in the stock market or mutual fund (MF) through a systematic investment plan. For: 1 lakh invest in this scheme will earn Rs 625 per month. If you get 15% returns in 5 years through mutual funds SIP, your 1 lakh will be 1.56 lakh.
Therefore, this monthly income scheme is a good plan for those who have taken voluntary retirement, those who have a surplus money in hand and looking for a stable income from investment.
I'll write about some more investment plans here. So keep an eye on this webpage :-)
Private investment plans are usually spread by more promotions. But the government has introduced better investment plan than those private. Yet, they do not get enough of the public attraction because of the lack of advertisements. This is one such plan.
150 years old Indian postal department was created during British rule which has wide spread presence all over the country. After Independence, Indian government had started using post office as an agency of government to spread various govt plans. As specified in my previous post (Sir.......India Post.....), India post has started doing various other business.
Postal office Monthly Income Scheme(PO MIS) is one of the government scheme which has been spread using India Post. The main features of this profitable scheme are as follows.
- At least Rs.1500 should be invested as minimum investment.
- Anyone over the age of 10 can start the investing in this scheme with the maximum threshold of 3 lakh.
- 4.5 lakhs threshold limit for individuals under 18 years old.
- 9 lakhs threshold limit for the joint accounts.
- As of July 1, 2017, 7.5% interest rate has been paid. This will be changed by government once in every three months.
- Investment will mature in 5 years.
- Post office savings account is must to invest in this scheme.
- Monthly interest will be credited to our savings account every month.
- We can define/modify the nominee at any time.
- There is no income tax exemption for this scheme.
- You can not withdraw invested money invested at least one year.
- If you withdraw your investment between 1 to 3 years before maturity, 2% penalty will be charged. For ex: If you invest 1 lakh and take it back in 2.5 years, you will get only Rs.98,000. But in this 2.5 years, earned interest will be Rs.18750.
- If you withdraw your investment between 3 to 5 years before maturity,1% penalty will be charged. For ex: If you invest 1 lakh and take it back in 3.5 years, you will get only Rs.99,000. But in this 3.5 years, earned interest will be Rs.26250.
PO MIS provides more interest than FD's. Even though the National Savings certificate (NSC) is more profitable, you can not tap out of it in between 5 years. Moreover, interest will not be available any month.
For who says that I do not need monthly interest, postal department offers more option to go for the long-term investment. You can convert your monthly interest in to a recurring deposit by simply an additional form. In doing so, your interest will be compound. For ex: your 1 lakh in 5 years will change to 1.45 lakhs.
This is just another set of people who wants their Investment to be safe and at the same time the returns should be higher. These people will be able to earn a higher return on investments by investing the monthly interest in the stock market or mutual fund (MF) through a systematic investment plan. For: 1 lakh invest in this scheme will earn Rs 625 per month. If you get 15% returns in 5 years through mutual funds SIP, your 1 lakh will be 1.56 lakh.
Therefore, this monthly income scheme is a good plan for those who have taken voluntary retirement, those who have a surplus money in hand and looking for a stable income from investment.
I'll write about some more investment plans here. So keep an eye on this webpage :-)
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