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Post Office Monthly Income Scheme; start investing with a minimal amount of Rs 1000

By Lokmat English Desk | Updated: January 19, 2021 15:33 IST

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The Post Office Monthly Income Scheme (MIS) is a low-risk investment scheme offering steady income and, hence, is suited for conservative investors and senior citizens.
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It is one of the small savings investment schemes wherein you can start investing with a minimal amount of Rs 1000.
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This 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.
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The MIS is a fixed income scheme and is a low-risk investment. The money deposited is not subject to market risks and stays safe.
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This Post Office investment comes with a lock-in tenure of 5 years, wherein the investment amount can be withdrawn or re-invested after maturity.
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Under the Post Office monthly income scheme, investors can invest up to Rs 4.5 lakh individually and Rs 9 lakh jointly.
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Once you start investing, you will receive the payout from the investment starting from the first month, that will be credited to you at the end of every month.
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With MIS, investors earn guaranteed interest returns every month. The current interest rate offered by Post Office MIS is 6.6 per cent per annum from 1 April 2020.
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Experts point out POMIS is seen to offer higher interest as compared to other fixed-income investments including some bank FDs but the returns from the MIS investments do not beat inflation.
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An individual can open more than one account in their name, but the total deposit amount cannot exceed the maximum limit of Rs 4.5 lakh together in all of the accounts.
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An individual can open more than one account in their name, but the total deposit amount cannot exceed the maximum limit of Rs 4.5 lakh together in all of the accounts.
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An account can also be opened in the name of a minor aged 10 or above, who will be able to access the funds after reaching 18 years of age.
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The total investment, in the case of a minor, cannot exceed a total of Rs 3 lakh.Note that, investments under this monthly income scheme do not fall under section 80C, and the income is subjected to taxation, but it has no TDS.
Tags: India Post
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