What are the facts to know before investing in post office schemes?

Getting into a saving investment scheme will always help in the long run. Saving up money for future needs is always a necessity because when you are facing off with a financial emergency, it will help you a lot. One such investment scheme is the Post Office Monthly Income Scheme (POMIS) which was introduced by the Indian Postal Service. There are many schemes that are provided by the Indian Postal Service and these schemes mostly can be started with minimal investment amounts.

Before getting involved with a post office saving scheme it would be better if you went through a few facts:

Only Indian residents will be able to benefit from this scheme
Interest is added on the invested money and you can earn steady benefits. The returns that you receive are guaranteed and are higher than compared to investments like Fixed Deposits
Being a government backed scheme, your money is taken care of by the government so you can rest assured
This scheme has a 5 year period of tenure after which you can withdraw the money or you can reinvest it
Initially, you can invest Rs. 1,500 after which you can gradually increase the amount you want to invest
You can have multiple accounts to invest your money, but the total deposit amount in all your accounts cannot exceed Rs. 4,50,000
Investors can open a joint account with up to 3 people. Regardless of who is contributing to the investments, all account holders have equal ownership
An account can be started on behalf of a minor who is 10 years old or above and they can withdraw the funds when they turn 18