Post Office MIS: The Indian Post Office’s Monthly Income Scheme (Post Office MIS) continues to be a reliable investment option for the middle and lower classes in India. Amidst the volatility of the stock market and falling bank interest rates, this Post Office scheme not only ensures the complete safety of your principal but also provides you with a fixed monthly interest rate of 7.4%. In this article, we’ll explore in detail how much an investment of ₹2 lakh will earn you over 5 years, the rules for a joint account, and the steps you need to take to take advantage of this remarkable scheme.
What is Post Office MIS
The Post Office Monthly Income Scheme is a savings scheme that requires a one-time deposit and earns monthly interest for the next 5 years. It’s an excellent option for those who have retired or have a lump sum of money and want a regular income to cover small household expenses. The biggest strength of this scheme is its government guarantee.
Your money is deposited directly with the Government of India, so there’s no chance of any loss. After the 5-year maturity period, you get your full ₹2 lakh back, while you’ll have earned a substantial amount in interest during this time.
Interest Rate and Investment Limit
Currently, the Post Office MIS offers an attractive interest rate of 7.4 percent. This rate is better and more stable than fixed deposits (FDs) at many major banks. You can open an account with as little as ₹1,000. Regarding investment limits, a single individual can deposit a maximum of ₹9 lakh in their own name.
If you open a joint account with your spouse or someone else, you can invest up to ₹15 lakh. A joint account can include up to three people, and at maturity, all are considered to have equal shares in the investment.
How much will your monthly income be
If you invest a lump sum of ₹2 lakh in the Post Office MIS scheme today, your annual income will be ₹14,796 at an annual interest rate of 7.4%. If this annual interest is divided over 12 months, you will receive a fixed income of ₹1,233 per month. Over the entire 5-year tenure, you will earn a total of ₹73,980 in interest.
The best part is that when the account matures after 5 years, your original investment, the entire ₹2 lakh, will be credited back to your account without any deductions. This means your capital is protected, and you also get an additional income from the comfort of your home.
Account Opening Process
To open an MIS account at the Post Office, it is mandatory to have a Post Office Savings Account. If you don’t already have a savings account, you’ll need to open one first. This is because the monthly interest earned under the MIS scheme is automatically transferred directly to your savings account at the post office.
You can become a part of this scheme by visiting your nearest post office and filling out a simple form, along with your Aadhaar card, PAN card, and passport-size photo. This scheme is a panacea for those who want a fixed return on their savings without any hassle.