Investors seeking financial stability and a reliable source of monthly income can find assurance in the Post Office Monthly Income Scheme (MIS). Offering guaranteed returns and flexibility in withdrawal after a five-year maturity period, this scheme caters to those prioritizing a steady income stream over market fluctuations.
Understanding Post Office MIS:
Before delving into the calculations, it’s crucial to understand the basics of the Post Office Monthly Income Scheme (MIS). This non-market-linked investment option provides an opportunity for individuals and joint account holders to secure monthly income with a maturity period of five years.
Types of Accounts:
Post Office MIS accommodates both single adult and joint accounts (up to 3 adults). Additionally, guardians can open accounts for minors aged 10 years and older.
Investment Limits:
An MIS account can be initiated with a minimum investment of Rs 1000, with multiples of Rs 1000 thereafter. The maximum investment stands at Rs 9 lakh for a single account and Rs 15 lakh for a joint account.
Interest Rate and Tax Implications:
With an attractive interest rate of 7.4% per annum, payable monthly, the Post Office MIS ensures a consistent income flow. However, it’s important to note that the interest earned is taxable.
Maturity Period:
The scheme matures after five years from the date of opening the MIS account. Although premature closure is possible, it incurs a penalty as a percentage of the principal.
Monthly Income Calculations:
To achieve a monthly income of Rs 9250, investors can opt for a joint account and fully utilize the deposit limit of Rs 15 lakh. This investment, earning a 7.4% interest rate, secures a monthly income of Rs 9250 for the entire five-year duration.
For those with an individual account investing Rs 9 lakh in MIS, the monthly income amounts to Rs 5550. Upon maturity, the principal can be reclaimed.
