Post Office Monthly Income Scheme: If you are looking for a safe income option away from market fluctuations, then the post office monthly income scheme (MIS) is a great option for you. In a 5-year lock-in period, this scheme, which has earned a total of ₹ 3,33,000 from only interest, is especially beneficial for investors who want regular monthly income.
The main features of the plan:
- Lock-in period: 5 years
- Interest Rate: 7.4% annually
- Minimum/Maximum Investment (Single Account): ₹ 1,000 to ₹ 9,00,000
- Joint account maximum investment: ₹ 15,00,000
- Interest Payment: Monthly
Mathematics of Return:
If you invest ₹ 9,00,000 lump sum for five years, then
- Annual interest: ₹ 9,00,000 × 7.4% = ₹ 66,600
- Monthly interest: ₹ 66,600 / 12 ≈ ₹ 5,550
- Total interest (in 5 years): ₹ 66,600 × 5 = ₹ 3,33,000
In this way, your principal will be safe in 5 years, while only interest will be able to take additional benefits of up to 3.33 lakhs.
Why choose a monthly income scheme?
- Complete security: Government protection with investment, operated by head office
- Continuous monthly income: Ideal for pension or other regular expenses
- Simple process: Fill the form by opening an account in the nearest post office and invest outright
- tax benefits: Under Section 80C, tax exemption can be obtained on interest under certain conditions (consult a tax advisor for the actual situation).
how to apply
- Prepare the document: Identity (Aadhaar/PAN), Address Proof, Bank Passbook Copy
- Go to the post office: Open the MIS account in the nearest branch
- Fill and deposit the form: Get the challan by depositing the investment amount outright
- Get interest: Every month interest will be directly credited to your bank account or post office savings account.
