Post Office - Monthly Income Scheme (MIS)!

Post office monthly income schemes provide a monthly income at 8 per cent per annum. On completion of six years, a 10 per cent bonus on the principal sum is provided. The scheme offers better liquidity, with investors having an exit option after one year from the investment date.

Unfortunately, an exit after one year would also lead to a loss of 5% of the amount invested. While there is no loss of interest earnings, the loss of principal can be significant if the amount invested is high.

Investors have to wait for a three-year period to withdraw from the scheme without penalty. The minimum investment for a single and joint account is Rs.6000, while the maximum limit is Rs.300,000 for a single account and Rs.600,000 for a joint account.

In short, it is suitable for people who wish to invest a lump-sum amount initially and earn interest on a monthly basis.

How do I invest in a Post Office Monthly Income Scheme?

You can buy a post office MIS at any post-office in India.

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Table Of Contents

  1. How to manage your money? - Intro
  2. Why should you invest your money?
  3.       >> For making "big buys"!
  4.       >> For tax saving!
  5.       >> Inflation
  6.       >> "The power of compounding!"
  7. How to invest?
  8. Investing in Mutual Funds!
  9. Assured return investments...
  10.       >> Fixed Deposits (FD's)
  11.       >> Public Provident Fund (PPF)
  12.       >> Employees Provident Fund (EPF)
  13.       >> National Savings Certificate (NSC)
  14.       >> Kisan Vikas Patra
  15.       >> Post-office - Monthly Income Scheme 
  16.       >> Post-office - Time Deposits
  17. Insurance