The Post Offices across the country offer a varied list of investment schemes and plans, mostly for the working-class people of India. The schemes offered by India Post are fairly popular due to their impressive interest rates and small investment amount.
The investment schemes offered by the post office are risk-free in nature and don’t depend on market changes in many cases, which is what makes them a good investment opportunity for many. One of the most popular schemes by India Post is the Post Office Monthly Investment Scheme (MIS).
The Post Office MIS scheme allows the person to invest a certain amount of money and get a fixed monthly income, as per the interest rate of the amount. Your nearest post office can help you open a Post Office MIS account, provided you have the correct documentation.
It must be noted that the Post Office MIS scheme has a fixed time period of five years, after which you can opt to withdraw or reinvest your money as per your needs. You can open an MIS account in the post office for as little as Rs 1000 as an investment.
How does Post Office Monthly Investment Scheme work?
The Post Office MIS scheme is popular with low or mid-income investors as it offers a fair interest rate and can be availed by an investment of just Rs 1000. The investor also gets tax incentives under Section 80C of the Income Tax Act, in addition to the guaranteed returns supplied by the Post Office.
A person can invest up to Rs 4.5 lakh in the MIS scheme individually or Rs 9 lakh together. The interest of the scheme is set by the government, depending upon the market conditions. The interest rate was set at 6.6 percent per annum for the quarter ending September 30, 2021.
By this calculation, an investor can invest Rs 4 lakhs in the scheme and receive a monthly interest of Rs 2000. The amount can only be withdrawn once the maturity period is reached.
Eligibility for Post Office MIS scheme
Certain documentation is required to invest in the Post Office Monthly Interest Scheme. Only residents of India are eligible to invest in this scheme, and anyone above 18 years can open this account. MIS accounts can be opened for children above 10 years by their parents. They will receive the benefits once they turn 18.