If you have a lump sum deposit and want to earn on it every month without risk, the Post Office Monthly Income Scheme (MIS) could be an excellent option for you. Being government-backed, this investment is considered completely safe and more attractive than traditional bank investments.

Post Office Scheme:  If you have a lump sum deposit and want to earn monthly income on it without risk, the Post Office Monthly Income Scheme (MIS) could be an excellent option for you. Being government-backed, this investment is completely safe and offers attractive interest rates compared to banks.

Key features of the scheme
The Post Office MIS is designed for retired individuals or those with surplus funds who wish to fund their household expenses with the interest earned on that money. You only need to make a one-time deposit. The interest earned on the deposit is credited to your savings account each month. The term of this scheme is 5 years. After the completion of 5 years, you will receive your entire principal back. This is a Government of India scheme, so there is no risk of loss of funds.

Investment Limit and Interest Rate
In this scheme of the post office, you can open a single or joint account as per your convenience:

Single Account: Maximum deposit up to ₹9 lakh can be made.

Joint Account: Maximum investment allowed is ₹15 lakh (maximum 3 people can open it together).

Interest Rate: Currently the government is giving 7.40% annual interest on this scheme.

Minimum investment: You can start with just ₹1,000.

Earnings Math: Return on investment of ₹14 lakh
If a couple invests in a joint account, they can significantly increase their monthly income. Read the table below to understand:

Description                                          Information

Scheme Name                                       Post Office Monthly Income Scheme (MIS)

Total Investment (Joint Account)         ₹14, 00,000

Interest rate                                           7.40% per annum

Monthly Income (Interest)                    ₹8,633

Duration                                                5 years

Return on maturity                                ₹14, 00,000 (full principal amount)

In this way, for 5 years you will get a total of ₹5,17,980 only as interest and your deposited money will also be safe.

PC:Punjab Keasri