Post Office Monthly Income Scheme (MIS)

What is Post Office Monthly Income Scheme (MIS)?

The Post Office Monthly Income Scheme (MIS) is a savings scheme offered by the Indian Postal Service. It is designed to provide individuals with a regular and reliable source of monthly income. The scheme offers a fixed interest rate and is suitable for investors looking for a steady income stream.

Why Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme is ideal for individuals who want to invest a lump sum amount and earn a fixed monthly income from their investment. It provides a safe and secure investment option with guaranteed returns, making it a popular choice among risk-averse investors who seek regular income.

Who can invest in Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme is open to Indian residents, including individuals and joint individuals. It is not available for non-resident Indians (NRIs) or Hindu Undivided Families (HUFs). Minors can also invest in the scheme, but with certain conditions and restrictions.

Benefits of Post Office Monthly Income Scheme:

  • Regular Income: The scheme offers a fixed monthly income to investors, providing them with a steady cash flow. This feature is particularly beneficial for retirees or individuals who rely on a regular income to meet their expenses.
  • Fixed Interest Rate: The Post Office MIS provides a fixed interest rate, which is currently around 6.6% per annum (as of July 2023). This ensures that the investment earns a predictable return throughout the tenure of the scheme.
  • Capital Protection: The investment made in the scheme is safe and backed by the government. The principal amount is protected, and the returns are assured, providing investors with peace of mind.
  • Tenure and Liquidity: The MIS has a fixed tenure of 5 years. After the completion of one year, the
    investor can withdraw the investment prematurely, subject to certain conditions and penalties. This allows for some liquidity in case of emergencies.

Rate of Returns in Post Office Monthly Income Scheme:

The interest rate offered on the Post Office Monthly Income Scheme is set by the government and is subject to periodic revisions. Currently, the interest rate is around 6.6% per annum (as of July 2023). It is advisable to check with the Post Office or the official website for the most up-to-date interest rate information.

Where can one invest in Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme can be opened at any post office across India. Post offices act as authorized agents for the scheme and facilitate the opening of MIS accounts.

Documents required to invest in Post Office Monthly Income Scheme:

The documents required to invest in the scheme include:

  • Identity Proof: PAN card, Aadhaar card, passport, voter ID, or driver's license.
  • Address Proof: Aadhaar card, passport, utility bills, bank statement, or rental agreement.
  • Passport-sized photographs.
  • Filled application form for the Post Office Monthly Income Scheme.

Points to consider before investing in Post Office Monthly Income Scheme:

  • Investment Limit: The maximum investment limit in a single MIS account is approximately Rs. 4.5 lakh for an individual and Rs. 9 lakh for joint accounts.
  • Monthly Income: The monthly income from the scheme is taxable. Consider the tax implications on the income earned from the Post Office Monthly Income Scheme.
  • Premature Withdrawal: While premature withdrawals are allowed after one year, they are subject to penalties. Understand the terms and conditions related to premature withdrawals before investing.
  • Interest Rate Risk: The interest rates offered on the scheme may change in the future. Consider the prevailing interest rates and their potential impact on your investment returns

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