Whether employed or in business, everyone wants a fixed monthly income. Especially after retirement, everyone is looking for different savings plans to ensure regular money. For such individuals, the Post Office Monthly Income Plan can be an option.

This plan requires a one-time investment and provides a fixed monthly income. Currently, if you invest in this plan, you can earn up to Rs 5,550 per month.

This Post Office scheme is one of the central government’s small savings schemes. This scheme offers an annual interest rate of 7.4% for the quarter ending October to December 2026. The tenure of this scheme is 5 years, and the interest amount is paid to the account holder every month.

Suppose an individual invests ₹9 lakh in this scheme, then at an interest rate of 7.4%, they will earn ₹66,600 in interest each year. This means that ₹5,550 will be deposited into their account each month. Over a five-year period, they will receive a total of ₹333,000 in interest. After the term is over, they will receive their original investment, ₹9 lakh.

The maximum investment limit for an individual account under this scheme is ₹9 lakh, while the maximum investment limit for a joint account is ₹1.5 million. Investing ₹1.5 million in a joint account can yield ₹9,250 per month at the current interest rate. The minimum investment allowed in this scheme is ₹1,000.

However, it's important to understand a few rules before investing. An account cannot be closed within the first year of opening. If the account is closed within one to three years, 2% of the principal amount is deducted. If the account is closed after three years and before five years, 1% is deducted.

The interest earned on this plan is taxable as per applicable laws. Therefore, it is important to consider your financial needs, tax profile, and investment period before choosing this plan.

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