Post Office MIS interest rate, guaranteed return scheme: When your monthly expenses are nearly fixed and you know how much amount you need to meet them, it is best to invest in a scheme that can provide you with a fixed monthly income. If you don't want to invest it in a market-linked programme, it is better to invest it in a guaranteed return investment scheme, where you get a fixed income every month. With that aim, post office runs the monthly income scheme (Post Office MIS). Here, you make a one-time payment and get a monthly pension for five years. Know how post office MIS works and how much investment you need to make to get a monthly income of Rs 5,000.

What is Post Office MIS?

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One can open a single or a joint MIS account with a minimum investment of Rs 1,000.

The scheme offers 7.4 per cent interest annually payable monthly.

A guardian on behalf of a minor or a person of unsound mind, and a minor above 10 years old, can in his own name.

If you are opening a single account, the maximum deposit will be Rs nine lakh.

If you are opting for a joint account, the maximum deposit will be Rs 15 lakh.

The interest is payable on completion of a month from the date of opening the account.

One can close the account prematurely, but in that case, there will be deduction from the principal amount.

The account can be closed five years after the date of opening the account. 

While the interest is taxable in the hand of the depositor, deposits in the post office MIS don't qualify for tax benefits under Section 80C of the Income Tax Act, 1961.

Here's how much you need to invest to get Rs 5,000 monthly income in post office MIS?

Since you get 7.4 per cent interest in the scheme, a Rs 9 lakh deposit will provide you with Rs 5,550 monthly income. To get Rs 5,000 monthly income, you need to deposit Rs 8,11,000 in the post office MIS.