Nowadays, having a steady income is essential for everyone, but investing in the market can be risky and isn’t suitable for everyone. If you’re looking for a reliable income without the associated risks, the Post Office Monthly Income Scheme (MIS) might be the perfect choice for you. This government-backed scheme is completely safe, allowing you to make a one-time investment and receive a fixed monthly income.
Couples can even open a joint account to earn a consistent monthly return with just a single investment.
What’s the investment limit?
You can invest up to Rs 9 lakh in a single account and Rs 15 lakh in a joint account under the Post Office MIS. The scheme offers an attractive annual interest rate of 7.4%, which is credited to your bank account every month.
How can you earn Rs 8,633 monthly?
If a couple invests Rs 14 lakh in this scheme, they will receive a guaranteed monthly income of Rs 8,633 for the next five years. If they invest Rs 15 lakh, the monthly income can go up to Rs 9,250.
The scheme has a lock-in period of five years, but you can withdraw your funds earlier if needed, subject to certain conditions.
This scheme is particularly ideal for those seeking a stable income post-retirement, and it can also serve as a supplementary income for working individuals. Since it’s fully secured by the government, there’s no risk involved—no worries about market downturns or losses.
What will you earn in total with MIS? (Detailed breakdown)
If you invest Rs 14 lakh:
– Monthly income: Rs 8,633
– Total interest over 5 years: Rs 5.18 lakh
– After 5 years, you’ll receive your full investment of Rs 14 lakh back.
If you invest Rs 15 lakh:
– Monthly income: Rs 9,250
– Total interest over 5 years: Rs 5.55 lakh
– After 5 years, you’ll get back your entire investment of Rs 15 lakh.