Post Office Schemes: The Post Office operates a wide range of programmes. The Monthly Income Scheme (MIS) is one of these. With this deposit plan, you can invest once and earn money each month. A single account in POMIS may only contain up to Rs 9 lakh, and joint accounts may only contain up to Rs 15 lakh. You receive interest every month on your deposit, regardless of the amount. The interest rate in the Post Office MIS is currently 7.4%.
Five-Year Lock-In Period
The money is deposited in Post Office MIS for a period of five years at a time, so you can earn interest for five years in a row. The amount deposited is refunded to you upon maturity. What are the guidelines, though, if you need money before five years and want to take it out or if you want to keep up the monthly earning plan for longer than five years? Be aware of this:
What happens if you take money out before 5 years?
You will not be eligible for the facility for a year if, after investing in this scheme, you decide to withdraw the money before the maturity period ends. You have the option to withdraw money from the account after a year, but doing so results in a loss because a portion of the money you deposited is withheld as a penalty. Within the first three years, two percent of the deposit amount is taken out and refunded if you take money out.
On the other hand, if you would like to take money out of the account before five years but after three, you will receive your deposit back less one percent.
Rules for extension
Generally speaking, all schemes such as FD, PPF, etc. allow you to extend your account; however, the Post Office Monthly Saving Scheme does not offer this feature. After the scheme matures, you can open a new account to continue receiving benefits.
You can make a monthly income
With the Post Office Monthly Savings Scheme, you can earn Rs 5,500 per month at an interest rate of 7.4% if you deposit Rs 9 lakh in a single account. On the other hand, if you put Rs 15 lakh into a joint account, you can get paid Rs 9,250 per month.
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