Investing in a post office savings plan is considered the safest. There are many such options under this scheme, which give you good profits.
One such scheme is the monthly income scheme, in which investing is considered risk free. A minimum investment of Rs 1,000 is made in this.
Investors in the middle and low income group can also look at this post office MIS scheme as a tax-saving option.
As one can also claim income tax exemption under section 80C of the Income Tax Act on the investment in this scheme.
What is Post Office Monthly Income Scheme?
This plan comes with a lock in period of five years. A minimum investment of 1000 to 4.50 lakh is made in this scheme.
On the other hand, if you have a joint account then you can invest Rs 9 lakh in it. In this plan, you get an interest rate of 6.60 percent on annuity. This plan gives you money every month during or after the investment, whenever you want to.
Interest will be payable on completion of one month from the date of opening and so on till maturity and an investor will have to claim the same.
Guaranteed Return Scheme
This post office scheme is a risk free guaranteed return scheme. If an investor invests in this Post Office Monthly Income Scheme today, he will get 6.60 percent return on his investment at the time of maturity.
If the account holder dies before maturity, the account can be closed and the amount will be returned to the nominee/legal heirs.
Interest will be paid till the previous month in which the refund is made.
Who can Open Account?
Only an Indian resident can open a Post Office Monthly Income Scheme account.
Any adult can open this post office MIS account by submitting the required documents at the nearest post office.
A minor above the age of 10 years can open this account in his own name, but he has to give the documents of his parents as a document.
How and when will get Rs 1.50 lakh
Suppose if you have invested maximum 4.50 lakhs in Post Office Monthly Income Scheme.
On which you are given an interest rate of 6.60, then every month you will get Rs 2,475, which will be a profit of Rs 1,48,500 on the completion of five years.