Latest news with #POMIS
India.com
2 days ago
- Business
- India.com
Looking for stable income? Receive Rs 6000 per month with Post office monthly income scheme, eligibility is...
Post Office Savings Scheme Post Office Monthly Income Scheme (POMIS): If you are planning to invest your money for a fixed regular income but not willing to take risk in stock market or mutual funds investments, we have an option which is both safe and moderately return-oriented. Amid the existence of market volatility and stock market crashes, the Post Office Monthly Income Scheme (POMIS) is emerging as a safe haven for risk-averse investors. With a fixed interest rate of 7.4% per annum and government backing, the scheme guarantees a steady monthly income for five years. Why POMIS is best for risk-averse investors? As a part of the scheme, any Indian resident, including minors (above 10 years of age), can open an account individually or jointly, making it an attractive option for families and retirees who wish to have fixed source of income every month. How much money does one get in POMIS? For instance, if a couple opens a joint POMIS account and invests Rs 10 lakh, they would receive Rs 6,167 per month, which is credited directly to their post office savings account. Totaling to a interest income of Rs 74,004 annually, the POMIS offers a reliable income stream without any market exposure. Readers should note that the minimum deposit starts at Rs 1,000 and investments must be made in multiples of Rs 1,000. How to withdraw from Post Office Monthly Income Scheme? The scheme also provides limited liquidity. While investors can withdraw funds after one year, a penalty of 2% applies if done between 1–3 years and 1% after that till maturity. Additionally, the deposited amount is returned in full after five years, and the monthly interest can be reinvested in recurring deposit schemes for compounding benefits.
News18
17-07-2025
- Business
- News18
Want Monthly Income After Retirement? This Post Office Scheme Gives Rs 9,250 Every Month
1/9 Most people want to invest their hard-earned money in a place where they receive guaranteed returns and security. Because of this, various bank and post office schemes are very popular. (News18 Tamil) Generally, people plan their investments with the future in mind. Without a pension, it can become quite difficult to manage household expenses after retirement. (News18 Tamil) 3/9 However, there are several schemes where, if you invest at the right time, you can receive a fixed income every month. One such plan is the Post Office Monthly Income Scheme (POMIS). By depositing a lump sum amount, you can earn a guaranteed monthly income. (News18 Tamil) Anyone above 18 years of age can open a POMIS account. The scheme allows both individual and joint accounts. The most important feature of this government-backed scheme is that your investment is completely secure, and you receive monthly interest at a fixed rate. (News18 Tamil)
Mint
20-06-2025
- Business
- Mint
6 government schemes that offer higher returns than FDs
Fixed deposits (FDs) are a great way to keep your money safe. With the rising cost of living, investing your money in low-yield schemes can reduce your purchasing power. Instead, you can turn to other government-backed schemes. These options are low-risk and can be aligned with specific goals like: Stable monthly income Securing a child's future Retirement savings And most importantly, some of them even offer interest rates higher than 5-year FD returns from all banks (excluding Small Finance Banks). Here are 6 such schemes that help you protect your capital and beat inflation: For those who want a stable only income without having to dip into their principal savings, POMIS is a reliable option. Current interest rate: 7.4% p.a. (revised quarterly) Interest payout: Monthly (starts a month after initial investment) Lock-in: 5 years Premature withdrawal: Allowed after 1 year with a penalty Minimum investment: ₹ 1,000 1,000 Investment cap: ₹ 9 lakh (single) or ₹ 15 lakh (joint) 9 lakh (single) or 15 lakh (joint) Taxation: Interest earned is taxable per the individual tax slab The interest earned is the monthly income. While your principal stays untouched until maturity. However, POMIS is only for adult Indian residents; NRIs are not eligible. Comparing this with the SBI Annuity Deposit Scheme (ADS): It pays both interest and principal monthly, which means your initial investment keeps shrinking, and as a result, so does your interest income. Additionally, SBI ADS currently offers around 6.5% p.a. POMIS beats that with higher stability and capital protection. For retired people (over 60 years of age) looking for a steady income, SCSS may be one of the best government-backed options, especially if your parents have received a lump sum amount, such as a retirement gratuity or final settlement. Current interest rate: 8.2% p.a. (revised quarterly) Interest payout: Quarterly Lock-in: 5 years (extendable for 3 more years) Premature withdrawal: Allowed with penalty Investment limit: ₹ 1,000 to ₹ 30 lakh 1,000 to 30 lakh Taxation: Interest earned is taxable per the individual tax slab It's simple, you invest once and get returns every quarter for 5-8 years. All the while, your principal stays untouched. However, even if you do not claim the quarterly interest, it does not earn any additional interest. Again, compare this with SBI ADS (for senior citizens), which returns part of your principal every month. As the principal shrinks, so does the interest income. Even at 7.5% p.a., the yield is lower over time. Meanwhile, SCSS keeps your money intact and your returns steady. As a parent to a girl child, you can use SSY to build a long-term financial cushion for her education and/or marriage. The scheme offers high interest and full tax exemption, making it one of the most rewarding options for goal-based savings. Current interest rate: 8.2% p.a. (compounded yearly; revised quarterly) Maturity: 21 years from the date of investment or when she gets married (after turning 18) Contribution period: 15 years Premature withdrawal: Allowed For the medical treatment of life-threatening diseases of the girl child In the event of the guardian's death Investment limit: ₹ 250 to ₹ 1.5 lakh p.a. (either lump sum or in multiple instalments) 250 to 1.5 lakh p.a. (either lump sum or in multiple instalments) Taxation: Completely tax-free You can open an account at any time before your daughter turns 10 years old, and you only need to contribute for the first 15 years. However, the account continues to earn interest until maturity. The returns are fully tax-free. In contrast, returns from minor FDs are taxed as per the guardian's slab. You can easily open it at your nearest Post Office, State Bank of India (SBI), or any public sector bank. Note: If you miss the minimum deposit in any financial year, the account will be treated as 'Account under Default'. It offers predictable growth without market risk. So, if you are an Indian individual over the age of 10 looking for a fixed-return investment option, NSC may be ideal for you. Current interest rate: 7.7% p.a. (compounded yearly; revised quarterly) Payout: At maturity Premature withdrawal: Not allowed except in case of the holder's death or under a court order. Minimum investment: ₹ 1,000 1,000 Where to invest: Post offices across India Taxation: Interest earned is taxable per the individual tax slab Unlike FDs, there's no TDS at maturity. Your full maturity value is received without deductions. Compared to 5-year bank FDs (currently lower yielding) and evenKisan Vikas Patra (KVP) at 7.5%, NSC delivers better returns. It can also be used as collateral for loans. For fixed income and capital safety, NSC is a clear step above traditional options. This is for the investors who want to grow their savings steadily, without worrying about market volatility. It offers guaranteed returns and your full principal back at maturity. Interest rate: 7.1% p.a. (compounded annually) Tenure: 15 years (extendable in 5-year blocks) Investment limit: ₹ 500 to ₹ 1.5 lakh per year 500 to 1.5 lakh per year Tax status: Fully tax-exempt (EEE) You can invest a small amount yearly (min. ₹ 500 or the account is discontinued), let it grow tax-free, and extend the account even after maturity. PPF does not require asset allocation or monitoring. It suits conservative investors who prefer simplicity and guaranteed returns over complexity and stock market risk. NPS is designed for long-term retirement planning. It helps you build a diversified portfolio across equity, corporate bonds, and government securities. Additionally, it helps you stay disciplined with regular contributions. Expected returns: 10–14% p.a. (market-linked) Lock-in: Until age 60 Minimum contribution: ₹ 1,000 per year 1,000 per year Who can invest: Indian citizens (residents and NRIs) aged 18–70 Investments are made across asset classes: Scheme E: Equity (maximum 75% exposure) Scheme C: Corporate bonds Scheme G: Government bonds Scheme A: Alternate assets At maturity, 60% of the corpus can be withdrawn as a lump sum (tax-free). The remaining 40% is used to buy an annuity that gives you post-retirement income (this is taxable as per the individual tax slab). Unlike PPF, NPS isn't tax-free when withdrawn. But it offers broader exposure and higher return potential if you can handle some market volatility. It works best for disciplined investors who want long-term growth, not just capital protection. Source: Finology When it comes to money, safety is paramount. However, it's not enough. You also need your money to grow. These 6 government-backed schemes offer both: capital protection and inflation-beating returns. Each serves a specific purpose: income generation, child-focused savings, or retirement planning. Choosing the right one depends on your goal and time frame. But when selected wisely, they offer a safer path to wealth preservation. However, for those aiming to grow beyond preservation, long-term wealth creation needs a different approach: Finology 30. It's a carefully curated list of high-quality businesses, selected after thoroughly researching their financial strength, governance, and long-term potential. Built for investors who want to stay ahead. Finology Research Desk advocates a practical approach: separate good and bad debt, restructure when needed, and stay still, if you are not sure where you stand? Try Finology Financial Health Check-up to assess your debt situation and start correcting course. Finology is a SEBI-registered investment advisor firm with registration number: INA000012218. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
