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When it comes to security and guaranteed returns in the world of investments, the Indian Post Office (Post Office) is a top priority. The Post Office Monthly Income Scheme is a boon for those looking to invest their savings in a way that offers zero risk and a fixed monthly return. Amidst market fluctuations and falling bank interest rates, this scheme remains a top choice for investors with an attractive interest rate of 7.4%.

What is Post Office MIS?

The Post Office Monthly Income Scheme is a savings scheme that requires a one-time deposit and earns monthly interest for the next five years. This scheme is especially suitable for those who are retired or have a significant amount of money and need a regular income to meet their daily expenses. The biggest strength of this scheme is its government guarantee. Your money is deposited directly with the Government of India, so there's no chance of any loss.

Interest rate and investment limit

Currently, Post Office MIS offers an excellent interest rate of 7.4 percent. This rate is considered more stable and better than fixed deposits offered by many major banks. Opening an account under this scheme is very easy, and can be done with a minimum deposit of just ₹1,000. Regarding the maximum investment limit, a single individual can deposit up to ₹9 lakh in their own name. However, if someone opens a joint account with their spouse or another person, this investment limit increases to ₹15 lakh.

What will be the return on an investment of ₹2 lakh

Now, let's turn to the main question: how much profit will a person earn if they invest ₹2 lakh in this scheme today? At an annual interest rate of 7.4%, the total interest on ₹2 lakh per year is ₹14,800. Divide this annual interest over 12 months, resulting in a monthly fixed income of approximately ₹1,233. Over the entire 5-year term, the investor earns a total of ₹73,980 in interest alone. The best part is that when the scheme matures after 5 years, you get your principal amount, ₹2 lakh, back without any deductions.

Joint Accounts and Security Rules

The joint account feature in this plan makes it even more unique. A maximum of three people can join a joint account. At maturity, everyone is considered to have an equal share in the investment. From a security perspective, it is completely free from market risks. If the investor needs the money before five years, they can withdraw it after one year, although a penalty is applicable. Withdrawals between one and three years will be refunded after deducting 2% of the principal amount, and after three years, 1% will be deducted.

Easy account opening process

To benefit from the Monthly Income Scheme, you must have a Post Office savings account. If you don't already have one, you can open one immediately, as monthly MIS interest is transferred directly to your savings account. To do this, you need to visit your nearest post office and fill out a simple form. You'll also need to submit the necessary documents, such as your Aadhaar card, PAN card, and a passport-size photo. This scheme is a panacea for those who want safe and assured returns on their savings without any hassle.