Post Office MIS Scheme: Inflation is constantly rising, making it more challenging for middle-class families to manage their monthly expenses. The lack of stable income for those with jobs, freelance jobs, and retirees further exacerbates financial worries. In such a climate, the Post Office Monthly Income Scheme (MIS) is proving to be a significant relief for those seeking a fixed monthly income, without any risk.
How the Post Office Scheme Works
This scheme is based on a one-time lump-sum deposit. Investors deposit a fixed amount, and the annual interest earned on that amount is divided into 12 installments and credited to their bank account every month. Currently, MIS offers an interest rate of 7.40 percent, which is higher than many fixed-income options. Once the investment is made, there are no fluctuations in interest throughout the term, ensuring a completely stable monthly income.
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Both husband and wife will earn income
Under a single MIS account, an individual can invest a maximum of ₹9 lakh. Fixed monthly interest is credited to their account on this amount. However, if a husband and wife open a joint account, this investment limit increases to ₹15 lakh. This amount easily earns a monthly interest of over ₹9,000. The scheme has a five-year term, after which the entire capital is returned. Investors can invest again in MIS upon maturity and continue receiving monthly income.
Why is this scheme safe?
This scheme is administered by the central government, so it is not affected by market fluctuations. The option to add a nominee is available, and premature closure is also possible if needed. While premature closure incurs a small deduction, this option proves to be very useful when there is an urgent need for funds.
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How to open a post office account
To avail the benefits of the Monthly Income Scheme, one must open an account at the nearest post office. The investor needs to submit an account opening form, a copy of their PAN card, KYC documents, and a passport-size photo. The account is then opened.
