India Post is always known to offer the best and safest investment options for the common man. They are known to introduce a number of different investment schemes every year. One of the schemes introduced by the Post Office is the Monthly Income Scheme or MIS. In this scheme, investors would have to invest only once and they would be eligible to receive monthly returns.
What is this Monthly Income Scheme?
Under this scheme, investment can be made in denominations of 100 and 1000. However, the total investment amount cannot extend Rs. 4.5 lacs for a single account and Rs. 9 Lacs for a joint account. A maximum of three people can open a joint account under this scheme.
Minimum deposit of Rs. 1000:
In this scheme, payment of investment amount is done monthly. The current interest rate is 6.6 percent, which is available on the basis of simple interest. Interest is added on an annual basis. If an account holder does claim the accrued interest monthly, then he or she would not be eligible for the benefit of getting additional interest on this money.
Maturity period is 5 years:
The maturity period of this post office scheme is five years. Money cannot be withdrawn until the completion of a year after the account is opened. 2% of the principal amount will be deducted for withdrawing money from this account during the first 1-3 years. Also, 1% of the principal amount would be deducted as a penalty for closing the account within 3-5 years.
Depositor to get at least Rs. 275 as interest every month:
According to this MIS, if one makes a lump sum deposit of Rs. 50,000 in this account, they are eligible to receive Rs. 275 as interest every month, making it Rs. 3300 every year for 5 years. A total of Rs 16,500 will be received as interest at the end of 5 years. On the other hand, if someone deposits Rs 4.75 lakh, they would get Rs. 2475 every month, Rs 29,700 in a year, and Rs 1,48,500 as interest in five years.
In case of the account holder's death, the nominee would be able to withdraw the principal amount.