The Post Office Monthly Income Scheme (MIS) offers a reliable way to earn a steady income by depositing a lump sum amount. This scheme allows you to receive monthly interest income at a rate of 7.4%.
For example, a joint account with a deposit of ₹15 lakh can generate a monthly income of ₹9,250.
Individual accounts can hold up to ₹9 lakh, while joint accounts can hold up to ₹15 lakh. The investment period for this scheme is 5 years, ensuring a regular income stream during this term.
Rules for Pre-Mature Withdrawal
If you need to withdraw your money before the completion of the 5-year term, there are specific rules and penalties to be aware of:
No Withdrawal Allowed Before 1 Year: You cannot withdraw any money within the first year of your deposit.
Penalty for Withdrawal After 1 Year:
If you withdraw between 1 to 3 years, a penalty of 2% of the deposit amount will be deducted.
If you withdraw between 3 to 5 years, the penalty reduces to 1%.
After 5 years, you can withdraw the full amount without any penalty.
Earnings Based on Different Deposits
Here’s a breakdown of the monthly income you can expect based on different deposit amounts at an interest rate of 7.4%:
₹5 Lakh Deposit: Earn ₹3,083 per month.
₹9 Lakh Deposit: Earn ₹5,550 per month.
₹15 Lakh Deposit (Joint Account): Earn ₹9,250 per month.
Eligibility and Account Opening
Any Indian citizen can open an account under the Post Office MIS. Accounts can also be opened in the name of a child.
If the child is under 10 years old, the account can be managed by their parents or legal guardians. Once the child turns 10, they can operate the account independently.
To open an MIS account, you need a savings account in the post office, and you must provide an Aadhaar card and PAN card for identification.
