Post Office is running many types of Saving Schemes for every age group – children, old and young. These schemes are also very popular in terms of safe investment and excellent returns. If you want to keep getting regular income along with investing, then in this case the Post Office Monthly Income Scheme i.e. MIS can prove to be a great option. In this, after lump sum investment, interest earnings start from the next month itself.
Getting strong interest of 7.4%
If we look at the information available on the post office website, the government offers an excellent rate of 7.4 percent interest on investment in this scheme. In MIS, you start getting the benefit of interest only after completion of one month from the date of opening the account, that is, this government scheme guarantees regular income from the next month of investment, in this you get interest on the deposited amount. The interest is paid monthly.
Start investing Rs 1000 continuously
You can open an account in Post Office MIS with an investment of just Rs 1,000. In this, account can be opened in two ways, first single and second joint account. If we talk about maximum investment limit, then a single account holder can invest a maximum of Rs 9 lakh in this scheme, whereas on opening a joint account, he can invest a maximum of Rs 15 lakh. To invest under the Monthly Income Scheme, it is necessary to have a savings account in the post office. Any person aged 18 years or above can invest in this scheme.
Guaranteed income of Rs 5000 every month
Now let’s talk about how after investing once you can get an income of more than Rs 5000 every month from this scheme, for this let’s take the help of Post Office MIS calculator. If you invest Rs 5 lakh in this, then at the rate of 7.4 percent interest, you will get an interest income of Rs 3,083 every month, whereas if you invest a maximum of Rs 9 lakh, the interest income every month will be Rs 5550. Let us tell you here that the lock in period in this scheme is 5 years.
If you open a joint account and invest Rs 15 lakh in lump sum as per the rules, then you will get an income of Rs 9,250 every month at the rate of 7.4%. If the investor dies before the maturity of 5 years, then the account is closed and the deposits are returned to the nominee or legal heirs. Interest will be paid till the last month of closure of the scheme.
Account closing before maturity
If you want to close your account before the maturity of this post office scheme, then you will be able to do this only after completion of one year from the date of investment. If the account is closed after one year and before 3 years from the date of account opening, an amount equal to 2% will be deducted from the investment amount and the remaining amount will be paid. If the account is closed after 3 years and before 5 years from the date of opening, an amount equal to 1% will be deducted from the principal amount and the remaining amount will be paid.