Post Office Monthly Income Scheme is best for those who do not want to take risk and want to utilize their retirement or spare funds wisely. The biggest feature of this scheme is that in this your principal amount remains completely safe and the government pays you interest on it every month.
As per the current rules, the duration of this scheme is 5 years. That means once you invest money, your income is guaranteed for 60 months.
How much will one have to invest to get ₹9,000 per month?
Under this scheme, you can open a single account or joint account (two or three people together). The mathematics of monthly income of ₹9,000 is based on joint account. The government has fixed the maximum limit for investment in joint account at ₹15 lakh. If you and your partner together deposit ₹ 15 lakh in this scheme, then according to the current interest rate (which is 7.4%), you get an interest of ₹ 1,11,000 annually. When you spread this amount over 12 months, it works out to exactly ₹9,250 per month.
What are the rules for single account holders?
If you want to open a solo account, you can invest a maximum of ₹9 lakh. On depositing ₹9 lakh, you will get an annual interest of ₹66,600 at the rate of 7.4%, which will be ₹5,550 per month. This is a very good scheme for those people who want to withdraw their savings for small household expenses or electricity and water bills instead of leaving them idle in the bank. The best part is that after the end of 5 years, you can withdraw your entire deposit (₹9 lakh or ₹15 lakh) or extend the scheme further.
Who can open this account?
Any Indian citizen can open Post Office MIS account. In this, account can also be opened in the name of children above 10 years of age, who are supervised by the parents. You can open this account with very little paperwork by visiting any nearest post office. Just keep in mind that you may have to pay tax on the interest received in this scheme as per your slab, although no TDS is deducted on the amount invested.