SCSS vs MIS: In today’s time, every investor is looking for a safe investment and guaranteed returns. In such a situation, various schemes run by the post office come out as a great option. By investing in these schemes, you can not only keep your money safe but also take advantage of attractive interest rates.
Today we will compare two very popular schemes of the post office – The Senior Citizen Saving Scheme (SCSS) and the Monthly Income Scheme (MIS). Both these schemes have their features, and according to your needs and age, one of them can prove to be better for you. Let us first understand the basics of both these schemes, then know their advantages and disadvantages through a detailed calculation.
Senior Citizen Savings Scheme (SCSS)
Senior Citizen Savings Scheme (SCSS) is specially designed for senior citizens and provides them with a regular source of income after retirement. Currently, investors are being given a great return of 8.2 percent under this scheme. This rate is much higher than many other savings options. A minimum investment of ₹ 1,000 and a maximum of ₹ 30 lakh can be made in it.
This limit has been fixed keeping in mind the savings capacity of senior citizens. Investing in it under Section 80C gives income tax benefits of up to ₹ 1.5 lakh, which makes it even more attractive. The basic period of this scheme is 5 years. If the investor wishes, it can be extended for another 3 years after maturity. To invest in it, the age of the applicant should be 60 years or more. In some special cases (such as retired defence personnel), the age limit may be relaxed.
Monthly Income Scheme (MIS)
The Monthly Income Scheme (MIS) is ideal for investors who want a fixed income every month on their capital. Currently, this scheme is offering a return of 7.4 percent. You can start this scheme with a minimum investment of ₹ 1,000, making it accessible to small investors as well. The maximum investment limit for a single account is ₹ 9 lakh. This scheme can also be opened with a joint account.
The maximum investment limit in a joint account is ₹ 15 lakh, allowing families to make large investments together. Like the Senior Citizen Scheme, there is no age limit, so a person of any age group can invest in it. If you want to invest in the Senior Citizen Scheme but are below 60 years of age, you can also start this scheme in the name of your parents or grandparents, provided they meet the eligibility criteria.
Understand the comparison through calculations
Let us do a detailed calculation of the benefits you get on an investment of ₹1 lakh in both the schemes for 5 years so that you can make a clear comparison:
Investment amount: ₹1 lakh
Tenure: 5 years
Senior Citizen Savings Scheme
If you invest ₹1 lakh in the Senior Citizen Savings Scheme for 5 years, you will:
Get an interest of ₹2,049 every three months.
On maturity, you will get a total of ₹1,41,000.
The total interest earned will be ₹41,000.
The interest amount will be received every year on 1 April, 1 July, 1 October, and 1 January.
Monthly Income Scheme
If you invest ₹1 lakh in Monthly Income Scheme for 5 years, you will:
Get interest of ₹616.67 (7.4% of ₹1,00,000 per annum / 12 months) every month.
This money will be given to you every month for the entire 5 years.
The total interest earned in 5 years will be ₹37,000.
On maturity, you will get back the original investment amount of ₹1,00,000.