Post Office Amazing Scheme: The Post Office Monthly Income Scheme (MIS) is designed for those who need a fixed monthly income from their investments. This scheme is considered particularly beneficial for retired senior citizens, housewives, and investors who want safe returns without taking risks. A lump sum amount is deposited, and the interest is credited directly to the account every month.
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Investment Period
The scheme has a tenure of 5 years. Monthly interest payments from the Post Office begin in the same month the investment is made. After 5 years, the investor receives the entire deposited amount back. This amount can then be reinvested in the same scheme or any other Post Office scheme.
Current Interest Rate and Monthly Income
Currently, the Post Office MIS offers an annual interest rate of 7.4 percent, which is higher than many bank fixed deposit rates. This interest is calculated on the invested amount and paid monthly. For example, an investment of ₹1 lakh yields approximately ₹616 per month. An investment of ₹5 lakh generates approximately ₹3,083 per month.
Earnings on a ₹9 Lakh Investment
If an individual invests the maximum amount of ₹9 lakh in their name, they receive approximately ₹5,550 in interest every month. This income continues for the entire 5-year period. After maturity, the investor receives the full ₹9 lakh back, while also earning approximately ₹3.30 lakh in total interest during this time.
Minimum and Maximum Investment Limits
The minimum investment in this scheme is just ₹1,000. The maximum amount that can be deposited in an individual account is ₹9 lakh. However, if a joint account is opened in the names of two or three people, the maximum investment limit is ₹15 lakh. An individual can open more than one account in their name, but the total investment across all accounts should not exceed the prescribed limit.
Scheme Security and Government Guarantee
The Post Office MIS is a completely government-backed scheme, so it is not affected by market fluctuations. The invested amount is secure, and a guaranteed income is received every month. This is why it is considered a risk-free investment option.
Nominee and Transfer Facility
Investors have the option to add a nominee, ensuring that the family receives the money easily in case of any unforeseen circumstances. Additionally, the amount can be transferred to other schemes like Post Office Recurring Deposit (RD) upon maturity or when needed.
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Important Tax Information
The interest earned from this scheme is taxable. While no TDS (Tax Deducted at Source) is deducted on the interest, the investor must include it in their income and declare it in their tax return.