If you’re looking to provide a monthly regular income for your son, the Post Office Monthly Income Scheme could be the ideal choice. Through this scheme, you have the opportunity to earn up to ₹9,250 every month for your son. Let’s explore how you can get started with investing in this scheme and secure your son’s future.
Post Office New Scheme: Funds can be deposited in the Post Office Monthly Income Scheme for a maximum of 5 years, earning an interest rate of 7.4% presently. Using a joint account, one can earn up to ₹9,250 through this scheme. It’s particularly beneficial for retirees, enabling them to secure a monthly income when both partners invest jointly. The scheme permits deposits of up to ₹9 lakh in a single account, ensuring the safety of your deposited funds while generating monthly earnings through interest.
By depositing ₹15 lakh in a joint account, you can guarantee an annual income of ₹1,11,000 at the current interest rate of 7.4%. Over 5 years, this translates to earning ₹5,55,000 through interest. Furthermore, looking ahead to 10 years, the total interest income would amount to ₹11,10,000. If you distribute the annual income of ₹1,11,000 over 12 installments, it amounts to ₹9,250 per month. Essentially, your son would receive a monthly income of ₹9,250.
If you invest in a single account
If you open a single account in Post Office Monthly Income Scheme and deposit Rs 9 lakh in it, then you can get Rs 66,600 as interest in a year and in five years you can earn Rs 66,600 x 5 = Rs 3,33,000 from interest alone. In this way, you can earn Rs 66,600 x 12 = Rs 5,550 per month only from interest and can name it after your son.
There is no hassle of repeated investment
Apart from this, you do not have to invest repeatedly in this scheme, that is, you have to invest a lump sum. Currently, this scheme gives an annual interest of 7.4 percent.
How to open your account
Any citizen of the country can open an account in it. You can also open an account in the name of your son. If the son is less than 10 years old, then his parents or legal guardians can open an account in his name. When the son turns 10 years old, he can also get the right to operate the account.
Visit the nearby post office to initiate the account opening process for this scheme. You’ll be required to complete a KYC form and provide copies of your PAN card, Aadhaar card, and other essential documents. In case of opening a joint account, ensure to include the PAN card details of the second member as well.
