Post Office National Savings Monthly Income Account: With the stock markets seeing a bloodbath across the globe as well as in India, the risk appetite of investors have reduced significantly. This has contributed to the need for investing in risk free assets, meaning those which will not be affected even if the stock market falls and fetch the investor a steady return even if it is not as high as stocks. The National Savings Monthly Income (MIS) scheme offered by the post office, or India Post, is a go-to option for Indians who look to save money and get a good return without having to risk their wealth.
Post Office MIS Account: What is It?
This is a scheme launched by the post office and backed by the government for those individuals who wish to have a steady income. The Post Office MIS policy caters to those who want to put their money in a government-run scheme, which will guarantee fixed returns. This scheme guarantees fixed returns to investors at the rate of which the money was invested initially. Apart from this, it acts as a tax saving scheme for middle and low income group investors, who can claim tax exemption under the Income Tax Act by investing in this scheme.
Post Office MIS: Invest Rs 50,000, Get Rs 3,300 Yearly Returns
In a tweet dated December 13 last year, the India Post urged citizens to invest in its National Savings Monthly Income account. “Invest in National Savings Monthly Income Account (MIS) and get up to 6.6% annual interest every month.” This means that currently, the Post Office MIS (POMIS) offers an annual interest rate of 6.6 per cent.
If you invest Rs 50 lakh in an account under the Post Office MIS, then the total interest you earn in a year at the rate of 6.6 per cent will be around Rs 3,300. If that is to be divided by 12, that is the number of months in a year, then your monthly income through Post Office MIS will be Rs 275 as per calculations.
Investors can earn as much as Rs 2,475 per month by investing Rs 4.5 lakh, which is the upper limit, in the Post Office MIS scheme for single accounts and Rs 5,000 per month by opening a joint account.
Post Office MIS Scheme: Other Details
Interested investors who want to open an MIS account must note that the minimum amount for opening of the account is Rs 1,000. The deposits thereafter has to be in multiples of Rs 1,000, as per the guidelines of the Post Office. The maximum investment limit is Rs 4.5 lakh for a single account and Rs 9 lakh for joint accounts. An individual can invest maximum Rs 4.5 lakh in MIS (including his share in joint accounts).