The Post Office Monthly Income Scheme (MIS) is a low-risk investment scheme offering steady income. The MIS scheme pays interest each month and is suited for those who seek regular or supplementary income from their investments.
The Post Office Monthly Income Scheme is one of the popular investment options in India, as it is a government-backed scheme and the invested amount is protected by the government until maturity. The money deposited is not subject to market risks and stays safe.
Under the Post Office monthly income scheme, investors can invest up to Rs 4.5 lakh individually and Rs 9 lakh jointly. Once you start investing, you will receive the payout from the investment starting from the first month, which will be credited to you at the end of every month.
Eligibility: Who can open a Monthly Income Scheme account
A single adult.
Joint Account (up to 3 adults) (Joint A or Joint B).
A guardian on behalf of minor/ person of unsound mind.
A minor above 10 years in his own name.
Features: Post Office Monthly Income Scheme (MIS)
Low risk: Safe investment that offers guaranteed returns after the maturity period. The risk-level in this scheme is almost 0%.
Investors can start by investing Rs 1,000 in this monthly income scheme, and the amount gradually multiplies over time.
5-year lock-in: Comes with a mandatory lock-in period of 5 years. Investors can also re-invest in the same scheme after the maturity period if they wish to.
Investments under this monthly income scheme do not fall under section 80C, and the income is subjected to taxation, but it has no TDS.
The maximum investment limit is INR 4.5 lakh in a single account and INR 9 lakh in a joint account.
An individual can invest a maximum of INR 4.5 lakh in MIS (including his share in joint accounts).
For calculation of the share of an individual in a joint account, each joint holder has an equal share in each joint account.
How to open a Post office MIS account:
To open a monthly income scheme, you will have to pay a visit to the nearest post office. Ask for the application form and, fill in the details and submit. There is no online facility to open this type of account yet. The post office savings account application form can be downloaded from the official website.