Post Office MIS: The Indian Post Office’s Monthly Income Scheme (Post Office MIS) is a boon for those who want to protect their capital from market fluctuations and also have a fixed amount for household expenses. Currently offering an attractive interest rate of 7.4%, this scheme has emerged as a very solid alternative to traditional bank FDs.
The biggest advantage of this investment is that your hard-earned money is completely protected with a government guarantee. In this article, we will explore in detail the maximum benefit you can enjoy through this scheme, the investment limits, and how the maturity terms benefit you.
Post Office MIS
For decades, the Indian Post Office has been the preferred choice of middle- and lower-income families. The Post Office Monthly Income Scheme (MIS) is specifically designed for investors who want to meet their monthly needs by investing a lump sum. This scheme is very popular among senior citizens, retired employees, and homemakers.
You simply deposit a portion of your savings once, and for the next five years, you receive a fixed amount as interest every month. This scheme is ideal for those who want to keep their savings safe and manage their monthly budget solely on the interest. In this era of Digital India, this interest is now automatically credited directly to your savings account, eliminating the need to visit the post office frequently.
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How much can you deposit
Investing in the Post Office MIS scheme is very simple and has been designed keeping in mind the small savings of the common man. Currently, the government offers an interest rate of 7.4% per annum on this scheme. You can open an account with a minimum amount of ₹1,000.
Regarding the upper investment limit, a single account holder can deposit a maximum of ₹9 lakh. However, if you open a joint account with your wife, husband, or any other family member, the investment limit increases to ₹15 lakh. A joint account can include up to three adults, and all are considered to have an equal share in the investment.
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Maturity and Fund Transfer Rules
The Post Office Monthly Income Scheme has a total tenure of 5 years. Your entire principal amount is returned to you after exactly 5 years from the date of account opening. A mandatory requirement to avail of this scheme is that you have an active savings account with the Post Office. The monthly interest earned is credited directly to this savings account.
If you don’t already have a savings account, you must open one when you open an MIS account. The thing to keep in mind is that if you do not withdraw your interest every month, you will not get any additional interest on that accumulated interest. It is wise to use it regularly or invest it in some other scheme.