The Post Office scheme is best suited for traditional investors and senior citizens.
New Delhi: Post Office offers various secure schemes providing impressive returns to investors. Many in India trust the government-run department when it comes to saving money for their future, especially retirement.
In one such scheme called Post Office Monthly Income Scheme (MIS), investors have an opportunity to receive a pension every month. The policy is a small savings investment scheme that provides impressive returns for investors, including guaranteed monthly income.
The Post Office scheme is best suited for traditional investors and senior citizens who require a fixed monthly income on their investments. Investors can open an account in Post Office Monthly Income Scheme with a minimal investment. For instance, an investor can open an account in MIS policy by investing a minimum of Rs 1,000.
The scheme is a low-risk investment option. Investors can put their money in the scheme for a tenure of 5 years. However, you can continue investing in the scheme if you wish to. You can increase the investment amount in the policy.
Post Office is currently offering an interest rate of 6.6 per cent per annum on the Post Office Monthly Income Scheme. The interest rate is better than several fixed deposits with similar maturity periods.
The fact that the investment option is non-linked to markets makes it a secure and low-risk option, ideally preferred by senior citizens. The scheme is also backed by the government, meaning that you will continue receiving the benefits till the time of maturity.
However, a fact that makes the investment scheme unattractive for many is that the investments are subjected to taxation. Also, investors cannot receive tax benefits under Section 80C of the Income Tax Act.
