People are drawn to guaranteed return schemes, and the Post Office Monthly Income Scheme (MIS) stands out as a reliable option for those seeking a steady monthly income. With a fixed interest rate of 7.4%, this scheme caters to the risk-averse investor. Let’s delve into the details to understand how an investment of Rs 9 lakh can yield a guaranteed monthly income of Rs 5550.
The Post Office Monthly Income Scheme is designed to provide a consistent and predictable income stream to investors. The scheme offers a 7.4% interest rate per annum, payable monthly, making it an attractive choice for individuals looking for stability in their investment portfolio.
Who Can Open an Account?
A single adult can open a single account, while up to three adults can jointly open an account. Additionally, guardians can open accounts on behalf of minors or individuals of unsound mind. Minors above the age of 10 can also open individual accounts in their own name.
Minimum and Maximum Investments
Investors can open an MIS account with a minimum deposit of Rs. 1000 and in multiples of Rs. 1000 thereafter. The maximum investment allowed is Rs. 9 lakh for a single account and Rs. 15 lakh for a joint account.
Interest Rate and Maturity Period
The scheme provides a fixed interest rate of 7.4% per annum, payable monthly. However, unclaimed interest at the end of a month does not earn additional interest, and the earned interest is taxable. The maturity period for the scheme is five years, during which the accountholder receives a monthly income. After maturity, the invested amount is returned.
Documentation Requirements
To open a Post Office MIS account, one needs to provide ID proof such as Aadhar card, passport, voter card, or driving license. Two passport size photographs are required, and a government-issued ID card or utility bill serves as address proof. The account can be opened by visiting the post office or by downloading the form online. An initial deposit of Rs 1000 is required, and the nominee’s name must be provided.
How to Maximize Monthly Income
To extract the maximum benefit from the scheme, investors need to reach the investment limit. A one-time investment of Rs 9 lakh in a single account yields a monthly income of Rs 5550 at a 7.4% interest rate. For those opting for a joint account with a one-time investment of Rs 15 lakh, the monthly income increases to Rs 9250.
In Shorts, the Post Office Monthly Income Scheme offers a secure avenue for those seeking guaranteed returns with the added advantage of a regular monthly income. This makes it a compelling choice for risk-averse investors looking for stability and consistency in their investment portfolios.
