Numerous post office savings schemes have gained significant popularity among small investors. One such scheme is the Post Office Monthly Income Scheme, which allows individuals to receive monthly earnings. This scheme is particularly advantageous for those seeking a steady income stream. Participants can earn Rs 9,250 each month, totaling Rs 1,11,000 annually. Let’s explore the details of this scheme and the investment process.
What is the MIS Scheme?
The Post Office Monthly Income Scheme (MIS) is a deposit program that provides monthly interest earnings. The amount you earn is contingent upon your deposit. Interest accrued is credited to your post office savings account, and you can withdraw your principal after a period of five years. For those looking to maximize their benefits, further investment in this scheme is encouraged.
Single and Joint Accounts
This scheme allows for both single and joint account openings. A joint account can be established by two or three individuals. The deposit limits differ, with a lower cap for single accounts and a higher limit for joint accounts. For instance, if you open a joint account with your spouse, you can deposit a larger sum and consequently increase your earnings.
How to Earn Rs 1,11,000
By depositing Rs 15 lakh into this scheme alongside your spouse, you can achieve an annual return of Rs 1,11,000 at an interest rate of 7.4 percent, which translates to Rs 9,250 monthly. Over five years, this would yield a total interest of Rs 5,55,000.
Earnings from a Single Account
If you opt for a single account, the maximum deposit allowed is Rs 9 lakh. At the same interest rate of 7.4 percent, this would result in an annual income of Rs 66,600 and a monthly income of Rs 5,550. Over five years, the total interest earned would amount to Rs 3,33,000.
Know who can open an account?
Any citizen of the country can open an account in the Post Office Monthly Income Scheme. The account can also be opened in the name of the child. If the child is less than 10 years old, his parents or legal guardian can open an account in his name. When the child turns 10 years old, he can also get the right to operate the account himself. For an MIS account, you must have a savings account in the post office. It is mandatory to provide an Aadhaar card, PAN card for ID proof.
