Invest Rs. 1000 in This Post Office Monthly Scheme to Become a Lakhpati Today

The investment opportunities available through India Post are among the most well-known in the business. While they offer a low return in comparison to other choices, their risk-free nature and government backing make them attractive among investors, particularly those from the old school. One such popular saving and investment option is the Post Office Monthly Income Scheme. It allows you to invest a certain amount and earn a fixed monthly income. An account under this method can be started at the local post office by presenting the necessary papers. 

The Post Office Monthly Income Scheme includes a five-year lock-in period during which you can choose to withdraw or reinvest your money. It is extremely accessible and popular among middle- and low-income investors because you may start investing with as little as Rs 1,000. In addition to the guaranteed returns provided by the Post Office, the plan includes tax benefits under Section 80C of the Income Tax Act. 

You can invest up to Rs 4.5 lakh individually or Rs 9 lakh collectively in the Post Office Monthly Income Scheme. The government modifies the interest rate based on market conditions, and the rate for the quarter ending September 30, 2021, was set at 6.6 per cent per annum. Investors can choose to cash out their interest or have it placed into their savings account. The Post Office has offered the ability to send funds to a recurring deposit account. 

Hence a person who invests 4 lakh rupees in the scheme will end up gaining Rs 2000 per month which translates into an annual interest rate of 6%. The investor also has the option of reinvesting or Withdrawing the Funds when the maturity period has ended. 

However, only a resident of India can have a Post Office Monthly Income Scheme. Any adult can also open up an account by submitting the needed documents to the nearest post office. An account can be opened under this scheme for children who are 10 years old. When the children turn 18 they will be eligible for other benefits under the Post office monthly income scheme. 

Like any other banking, schemes is the money deposited under this scheme is withdrawn prematurely it will result in penalties. 

If the premature withdrawal occurs before the fulfilment of the first year the investor will not get any advantages. If the Premature withdrawal occurs between the first and the third years a 2 per cent penalty will be applied While Premature withdrawals between the third and the fifth year will result in a 1 per cent penalty with the reimbursement of the whole corpus.