Post Office MIS: There are numerous government schemes in the country that allow you to make safe investments and build a corpus running into lakhs. Accumulating such a large fund can often seem like a distant dream, but the Post Office Monthly Income Scheme (MIS) can turn this dream into reality.

A key feature of the Post Office Monthly Income Scheme is that you do not need a giant sum of money to get started; you can begin investing with as little as ₹1,000. Following this, you receive monthly returns on your investment. Currently, this scheme offers an annual interest rate of 7.4%. Interest benefits are credited quarterly. Accounts can be opened with a minimum deposit of ₹1,000, and subsequent investments can be made in multiples of ₹1,000.

Know the investment limits.
Under the Post Office Monthly Income Scheme, a single account holder can invest up to a maximum of ₹9 lakh, while joint account holders can invest up to ₹15 lakh. Individuals have the option to open multiple single or joint accounts, but the total investment across all accounts cannot exceed the prescribed limits.

Eligibility for opening an account
If you are a resident of India, you can easily open an account under this scheme. An individual can open a single account in their name. Up to three adults can jointly open an account. Guardians can open accounts on behalf of minors; a minor aged 10 years or older can open an account. Upon turning 18, the minor can convert the account into an adult account by submitting the necessary opening form and completing KYC formalities.

Please find out what the monthly income will be.

For reference, if an individual invests the maximum amount of ₹9 lakh, they earn ₹66,600 annually at an interest rate of 7.4%, resulting in a monthly income of ₹5,550. Similarly, if joint account holders invest ₹15 lakh, they earn an annual interest of ₹111,000, translating to a monthly income of ₹9,250. It is important to note that if the monthly interest earned is not withdrawn, no additional interest is accrued on that specific amount under this scheme. The interest can be automatically credited to a post office savings account or transferred to the account via ECS.

For what duration is the money deposited?
The investment tenure for the Post Office Monthly Income Scheme is for 5 years. However, the account can be closed prematurely if the need arises. Withdrawal of funds is not permitted within one year of opening the account. If the account is closed after one year but before the completion of three years, a deduction of 2% of the deposited amount is made.

If the account is closed after three years but before maturity, a deduction of 1% is made. The account can be closed after the 5-year term is completed. If the account is not closed upon maturity, interest continues to accrue on the eligible amount at the rate applicable to Post Office Savings Accounts.