Post Office MIS Scheme: Everyone wants to invest in a place where they can get excellent returns without any risk. To address this need, the Post Office operates several schemes. These schemes offer low risk and stable returns on investment because they are government-backed. One popular option is the Post Office Monthly Income Scheme (MIS). The interest rate offered on this scheme is higher than that of the Public Provident Fund (PPF), and it can be a good source of regular income.
Scheme Duration and Investment Limit
The Post Office Monthly Income Scheme is available for a period of 5 years. A single account holder can invest a minimum of Rs. 1500 and a maximum of Rs. 4,50,000 in this scheme. For joint account holders, the investment limit is from Rs. 1500 to Rs. 9,00,000. For minor account holders, the minimum investment is Rs. 1500, and the maximum is Rs. 3,00,000.
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Interest Rate and Tenure
The interest rate in this scheme varies for different tenures. The interest rate is fixed at 5.50% for 1, 2, and 3-year tenures. However, for a 5-year tenure, the interest rate is 7.6%, which is higher than PPF’s 7.1%. The PPF has a lock-in period of 15 years, while the Post Office Monthly Income Scheme is only for 5 years, making it a more liquid and attractive option for investors.
Account Opening Process
To open an account in this scheme, you must have a Post Office Savings Account. If you don’t have one, you will need to open it first. After that, obtain an application form from the Post Office, fill it out, and submit it along with self-attested copies of all the necessary documents. It is also necessary to carry the original documents for verification.
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The applicant will also need to provide the nominee’s name, date of birth, and mobile number. For the initial investment, a minimum of ₹1000 must be deposited in cash or by cheque. The required documents include a copy of a government-issued identity card, such as a passport, voter ID, driving license, or Aadhaar card. A recent utility bill and a passport-sized photograph are also necessary.