In terms of safe investment and excellent returns, Post Office small savings schemes are quite popular these days. The Indian Post Office runs government schemes for everyone from children to the elderly and women. Some of these schemes guarantee regular monthly income, which can eliminate the worries of financial needs after retirement. One such scheme is the Post Office Monthly Income Scheme (MIS), where you can ensure a monthly income of Rs 5,500 after just one investment and the government also offers a good interest rate on this scheme.

Money will come into the account every month

Everyone plans to save a part of their income and invest it in places where they will get good returns, while some look for schemes to ensure regular income. If you also think like this, then Post Office MIS Scheme is right for you. Under this scheme, you will start earning Rs 5,500 every month from interest only. The government itself guarantees the safety of the money invested in this scheme, which means risk-free investment and guaranteed monthly income. An account can be opened in this Post Office scheme with just Rs 1000.

Government is offering 7.40% interest on investments

Anyone above the age of 18 can open an account under the Post Office MIS Scheme. Both individual and joint accounts can be opened. If you are planning to open a joint account, a maximum of three adults can open the account together. In terms of interest, the Post Office MIS Scheme offers an interest rate of 7.40% on investments. The maturity period is five years.

MIS Scheme is a one-time investment plan

Post Office Monthly Income Scheme is a one-time investment plan. This means that you have to invest only once and then you will start earning monthly income from the interest earned. Under this government scheme, a maximum of Rs 9 lakh can be invested in a single account. However, if the investor opens a joint account, then a maximum of Rs 15 lakh can be invested. Interest is available from the month after the account is opened and continues till the expiry of the tenure.

How to earn Rs 5,500 per month?

Now let us discuss how investing in this post office scheme guarantees a monthly income of Rs 5,500. The calculation is very simple. For this much monthly income, you have to open a single account and deposit a maximum of Rs 9 lakh. Considering the government’s annual interest rate of 7.4%, the monthly interest income will be Rs 5,500. To earn more, you have to open a joint account and invest Rs 15 lakh in it, which will increase your monthly income to Rs 9,250 per month.

Account Features of Post Office MIS

This post office scheme offers the option of receiving interest on a monthly, quarterly, half-yearly or annual basis. However, to fully benefit from this scheme, it is very important not to close the account before the five-year maturity date. Doing so may result in losses. If the account is closed within one to three years of opening, 2% of the principal will be deducted. If it is closed between three and five years, 1% will be deducted. However, if the account holder dies before maturity, the account can be closed, and the deposit will be transferred to the nominee and interest will be paid till the refund date.

Open an account at the nearest post office

Opening an account under this post office monthly savings scheme is very easy. You can apply at your nearest post office along with the required documents. From there, you will need to fill an account opening form and KYC form and submit it along with a photocopy of your PAN card.