Post Office Monthly Income Scheme (MIS): How Rs 9 lakh investment gives you guaranteed monthly income of Rs 5550; know calculations

Post Office Monthly Income Scheme (MIS): People like anything that is guaranteed to them, and risk aversion comes naturally to a majority of people. That's probably the reason why guaranteed return schemes with fixed income, even if their return is lower than many of the market-linked investment options, always attract a lot of investors. Post Office Monthly Income Scheme (MIS) is also one such investment option that helps people get a monthly income after a one-time initial investment. It gives a steady and regular income to investors and helps them meet their monthly expenses to a great extent. It offers a 7.4 per cent interest rate per annum payable monthly.

One can have a single and a joint account in the scheme.

If one invests a certain amount in the Post Office MIS, they can get a monthly income of Rs 5550.

But before we move on to calculations, we will help you get the basic information about Post Office MIS. 

Post Office Monthly Income Scheme (MIS): Who can open an account?

A single adult can open a single account. Up to three adults can open a joint account.

A guardian can also open an account on behalf of a minor/person of unsound mind.

A minor whose age is above 10 years can also open an individual account in their own name.

Post Office Monthly Income Scheme (MIS): Minimum and maximum investments

One can open an MIS account with a minimum of Rs. 1000 and in multiples of Rs. 1000.

As far as the maximum investment is concerned, one can deposit Rs. 9 lakh in a single account and Rs. 15 lakh in a joint account.

Post Office Monthly Income Scheme (MIS): Interest Rate

The Post Office scheme provides a 7.4 per cent interest rate per annum payable monthly. However, if one doesn't claim interest at the end of a month,  such interest will not earn any additional interest. The interest a depositor earns is taxable. 

Post Office Monthly Income Scheme (MIS): Maturity period

The maturity period for the scheme is five years.

Till five years, the MIS accountholder gets a monthly income.

After the completion of the scheme, the post office returns your invested amount.   

However, if the accountholder dies before the maturity period of five years, the account may be closed and the deposited amount will be returned to nominee/legal heirs.

The interest, however, will be paid up to the preceding month, in which case a refund is made.

Post Office Monthly Income Scheme (MIS): Documents required

If one wants to open a Post Office MIS account, they must have their Aadhar card or passport, voter card, or driving licence as ID proof.

They will have to provide two passport size photographs.

The government issued ID card or utility bill will be valid for address proof.

With these documents, one can visit the post office and fill the Post Office MIS form.

One can also download the form online.

To open this account, one has to initially deposit Rs 1000 through cash or a cheque.

One also needs to fill the nominee's name in the form.

Post Office Monthly Income Scheme (MIS): How to get Rs 5550/monthly income

Now, the question arises: how to get the maximum benefit from the scheme.

For that, you need to exhaust the maximum limit of your investment.

If you have a single account and you make a one-time investment of Rs nine lakh, then at 7.4 per cent interest rate, you will get a monthly income of Rs 5550.

However, if you have a joint account and make a one-time investment of Rs 15 lakh, your monthly income will swell to Rs 9250.