If you’re looking to invest your savings in a scheme that provides you with a regular monthly income, the Post Office MIS scheme is perfect for you. This scheme will provide you with exceptional income of up to ₹9,250 per month solely from interest. The government provides a complete guarantee of the safety of your invested funds, making it a risk-free investment option. You can open this account with a minimum of ₹1,000. Currently, the government offers a guaranteed interest rate of 7.40% per annum on this scheme.
Eligibility and Joint Account Opening
Anyone above 18 years of age can open an account under the Post Office MIS scheme. This scheme also offers the unique option of opening a joint account, and a maximum of three adults can open an account together. The maturity period of this scheme is five years.
Equation to Earn ₹9,250 per Month
The Post Office Monthly Savings Scheme is essentially a lump sum investment plan. This means you only need to invest once, and your interest income is guaranteed every month until maturity. Under this scheme, a maximum of ₹9 lakh can be invested in a single account, while a maximum of ₹15 lakh can be invested in a joint account. In the case of a joint account, it is mandatory for all holders to have an equal share in the investment.
Complete Income Calculation
As mentioned, you can open a joint account with your wife and invest a maximum lump sum of ₹15 lakh.
If you invest the maximum amount of ₹15 lakh:
Interest Rate: 7.40% Per Year
Annual Interest Income: ₹15,00,000* 7.40% = ₹1,11,000
Monthly Interest Income: ₹1,11,000 / 12 = ₹9,250
Thus, an investment of ₹15 lakh will earn you a fixed income of ₹9,250 per month. If the account is a single account, an investment of ₹9 lakh will earn you a total income of ₹5,550 per month. Interest accrues from the next month of account opening and continues until maturity.
MIS Account Details
The Post Office MIS account is a lump sum investment scheme, which offers a government interest rate of 7.40 percent per annum. Interest income can be withdrawn monthly, quarterly, semi-annually, or annually.
Premature Withdrawal Charges
Closing the account before the 5-year maturity period may result in financial losses. If you close the account within 1 to 3 years, 2% of the principal amount will be deducted. If you close the account between 3 and 5 years, 1% will be deducted. Premature closure of the account can also occur in the event of the account holder’s death. In such a case, the deposit amount is transferred to the nominee, and only interest accrues until the account is redeemed.
How to Open an MIS Account
Opening an account under this monthly savings scheme of the Post Office is very simple. You can apply for it by visiting your nearest post office with the required documents. There, you’ll need to fill out an account opening form and a KYC form and submit them along with a photocopy of your PAN card. This is a great and secure way to ensure a steady monthly income after retirement.