The Post Office offers several safe investment options that provide stable returns without market risk.
One such option is the Post Office Monthly Income Scheme (MIS).
This scheme is popular among investors who want regular income along with capital safety.
Let’s understand how this scheme works and why it attracts long-term savers.
What Is the Post Office Monthly Income Scheme?
The Post Office Monthly Income Scheme comes with a fixed tenure of 5 years.
It is designed for people looking for guaranteed returns and steady monthly earnings.
For a single account, the minimum investment starts at ₹1,500 and goes up to ₹4.5 lakh.
In a joint account, investors can put in up to ₹9 lakh.
For minor accounts, the maximum investment limit is ₹3 lakh, with the same minimum of ₹1,500.
Interest Rates and Returns Explained
The interest rate under this scheme depends on the tenure.
For 1, 2, and 3 years, the interest rate remains at 5.5 percent.
However, for the full 5-year term, the interest rate increases to 7.6 percent.
This rate is higher than the current interest offered by the Public Provident Fund, which stands at 7.1 percent.
While PPF has a much longer lock-in period of 15 years, the Monthly Income Scheme offers better returns in a shorter time frame.
How to Open a Post Office MIS Account
To open an account under this scheme, you must first have a Post Office Savings Account.
If you don’t have one, you’ll need to open it before applying.
Next, collect the application form from your nearest post office, fill it out carefully, and submit it along with self-attested copies of the required documents.
Original documents must be shown for verification.
Documents and Initial Deposit Required
You will need to provide a valid government-issued ID such as Aadhaar card, passport, voter ID, or driving license.
A recent utility bill or address proof and a passport-size photograph are also required.
At the time of account opening, an initial deposit of at least ₹1,000 must be made, either in cash or by cheque.
You can also add nominee details, including name, date of birth, and mobile number.
This scheme is a good option for investors who want guaranteed returns, regular income, and a shorter lock-in period without any risk to their capital.
