Mumbai: Investors looking for a regular monthly income can consider the Post Office National Savings Monthly Income Account (MIS), a government-backed small savings scheme currently offering 7.4 per cent annual interest.
A joint account with an investment of Rs 15 lakh can generate around Rs 9,250 every month at the prevailing interest rate.
How Rs 9,250 Monthly Income Works
Interest earned under the scheme is distributed every month rather than being accumulated until maturity.
An investment of Rs 9 lakh at 7.4 per cent generates annual interest of Rs 66,600, equivalent to about Rs 5,550 per month.
For a joint account with Rs 15 lakh invested, annual interest works out to Rs 1.11 lakh. Divided across 12 months, this provides Rs 9,250 monthly.
If the monthly interest is not withdrawn, it remains in the linked Post Office Savings Account. No additional interest is earned on the accumulated MIS interest.
Five-Year Maturity
The Post Office MIS has a maturity period of five years.
At maturity, investors receive their original principal amount. They can reinvest the money in the scheme, subject to prevailing rules and interest rates.
The government reviews interest rates on small savings schemes every quarter. Therefore, returns applicable to new investments may change.
Who Can Open An Account?
Any eligible Indian resident can open an individual MIS account. Joint accounts can also be opened by up to three adults.
Accounts can be opened on behalf of minors. Children aged 10 years or above can also open accounts in their own name, subject to applicable rules.
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How To Invest
Investors need a Post Office Savings Account before opening an MIS account.
They must submit the prescribed application form along with the required investment through permitted payment methods.
Aadhaar and PAN requirements apply to Post Office small savings schemes under government rules.
The scheme primarily suits investors seeking capital safety and predictable monthly income rather than market-linked returns.
