The Post Office offers a range of Small Saving Schemes for its customers, providing them with secure investment options.
Among these schemes, the Monthly Income Scheme (MIS) has gained significant popularity among small savers due to its guaranteed monthly income feature.
Let’s take a look at the benefits of investing in this scheme:
Guaranteed Interest Rate of 7.4%
The Post Office MIS scheme offers a guaranteed interest rate of 7.4%, making it an attractive investment option for those seeking a regular source of income.
Interest is credited to the account holder’s savings account every month, starting from the date of opening the account.
Affordable Investment with Low Entry Barrier
Investors can open an MIS account with a minimum investment of just Rs 1,000.
The scheme provides the option to open either a single or joint account, with a maximum investment limit of Rs 9 lakh and Rs 15 lakh respectively.
Lock-in Period of 5 Years
The MIS scheme has a lock-in period of five years, but account holders have the option to extend it for another five years.
The government recently revised the interest rates for the scheme, making it more lucrative for investors.
Facility to Close the Account
Account holders have the option to close their MIS account after one year. However, some amount will be deducted from their deposit.
If the account is closed after one year but before three years, a penalty of 2% will be deducted from the deposited amount.
If the account is closed after three years but before five years, a penalty of 1% will be charged.
Suitable for All Adults
The MIS scheme is available to all Indian citizens aged 18 and above, who hold a savings account in the Post Office.
It provides a secure investment option for those seeking a guaranteed monthly income.
In conclusion, the Post Office Monthly Income Scheme is a great investment option for small savers who want to earn a guaranteed monthly income with low investment and low risk.
