Post Office Monthly Income Scheme: Assurance of safe investment
Investing money in post office is an option which investors often consider safe. The post office not only offers guaranteed returns, but it also offers various investment schemes. One of the popular schemes is – Monthly Income Scheme (MIS). This scheme gives investors a fixed amount of interest every month, which can serve as a steady income source. Come, let us know about it in detail.
What is Monthly Income Scheme (MIS)?
Post Office Monthly Income Scheme is a micro savings scheme, which has been made attractive by the Central Government. This scheme can become a major option for secure and stable income after retirement. Recently the government has increased the interest rate on this scheme, making it even more beneficial for investors.
Investment Terms and Process
In this scheme, it is important for investors to pay attention to some important conditions. If you withdraw your money in the scheme after one year, you can withdraw the entire amount. But, if the money is withdrawn within one to three years, a fee of two percent will be charged, while the remaining amount will be refunded. If the account is closed within three years, a portion of the deposited amount is deducted.
Interest rates and investment limits
At present, an annual interest rate of 7.4 percent is applicable on the monthly income scheme. Its minimum investment starts from Rs 1,000, while the maximum investment limit is up to Rs 9 lakh for individual accounts. This limit can be increased to Rs 15 lakh in joint accounts.
Facility to change joint account and single account
The scheme also has the facility to open a joint account, which can be converted into a single account as per requirement and vice versa. This facility provides investors with the flexibility to manage their investments as per their needs.
Amount received on investment of Rs 5 lakh
Right now you might be wondering how much return you will get from a monthly income scheme on an investment of Rs 5 lakh. So you will receive an amount of Rs 3,083 every month, which is a good monthly return. This way, this plan can create a strong base for your regular income.
