Monthly Income Scheme Guaranty from Post Office 2024: People Should Need to Know How to Take That Benefit

Monthly Income Scheme Guaranty from Post Office 2024

Monthly Income Scheme: Nowadays almost every person has a bank or post office account. To secure a future financially, investment is the only option there. At this situation India Post can be a good option for investment with full security. Post office offers many schemes for every person. Monthly Income Scheme is one of the popular among many schemes.

The Post Office Monthly Income Scheme: A Safe Investment Option

Post Office Monthly Income Scheme: With the increasing focus on something as simple yet crucial as financial security, many have opted for investment modes that assure safety as well as provide reasonable returns. One of those is… the Post Office Monthly Income Scheme (MIS), which is a government guaranteed plan that aims at providing a fixed income on a monthly basis and ensures that the customers capital remains safe.

Explaining Post Office Monthly Income Scheme

The MIS permits the investors to make a one time investment sum and consequently earn a specific amount of money every month for a certain period of time. The most distinct feature of this scheme is it’s straightforward and safe nature thereby making it suitable for people who are in need of structuring their pension or for anyone else in quest for an assured income.

Key Features of the MIS

1. Investment Constitution: investors undertake to invest a period of five years. After the lapse of this period, they still receive monthly payments for another five years thus creating an income plan of ten years.

2. Competitive Interest Rate: The scheme offers interest rates of 7.4% per annum at the moment. These interests are calculated on the amount invested and remitted to the investor at the end of every month.

3. Accessibility: The scheme has provisions for single and joint accounts in the scheme thus allowing poor families to invest.

4. Capital Preservation: Money put in at the outset by the investor is returned at the end of the investment period, hence the capital does not get eroded.

Explore All Latest Post Office Savings Schemes

Calculating Returns on Investment under Post Office MIS Scheme

If you want to know how much can you earn from the MIS, you can check the following steps:

Know Your Investment Amount: You must decide the amount which you are going to invest (for example: ₹10 lakhs).

Do Annual Interest Calculation: This requires applying the interest rate to the investment made.

Formula: Annual Interest = Investment Amount × Interest Rate

In case of ₹10 lakhs,

Annual Interest =  ₹10,00,000 × 7.4 % =  ₹74,000

Do Monthly Income Calculation: Take the annual interest worked out earlier, divide by twelve to know how much the individual will receive every month.

Formula: Monthly Income = Annual Interest ÷ 12

In case of ₹74,000:

Monthly Income = ₹74,000 ÷ 12 ≈  ₹6,166.67

Total income earned during the investment duration: Calibrate the monthly income with the full months in which you will be receiving payments (60 months for 5 years).

Also You can use Post Office Savings Scheme Calculator With Latest Interest Rates and calculate your savings within a minute.

Total Income = Monthly Income × 60

In case of ₹6,166.67:

Total Income = ₹6,166.67 × 60 ≈ ₹3,70,000 .

Repayment of the investment made: Keep in mind anyways the principal amount will be refunded after 5 years.

Explanation With Example of Post Office Monthly Income Scheme (MiS)

Let us say, there is a person who puts 10 lakhs in the Post Office Monthly Income Scheme. Considering an interest rate of 7.4%, one can expect an annual interest of ₹ 74,000, equivalent to a monthly interest of ₹6 ,166.67. After the maturity period of 5 years, this person will still continue receiving this monthly income for another 5 years amounting to a total of ₹7,40,000 within that decade while the capital amount remains intact.

For those who want to put their money into a joint account, the returns can be more profit oriented. In case the same pair deposits 15 lakh rupees, they are expecting 1,11,000 rupees per year or 9,250 rupees every month. For the entire investment period, they would receive 11,10,000 rupees as earnings without touching the initial amount.

Who Should Consider Post Office Monthly Income Scheme (MIS)?

The Post office monthly savings scheme is more advantageous for older persons or people who are close to retirement age since it offers a consistent cash flow which can be used to service the monthly bills. It is also ideal for the risk averse investors’ category whose concern is the security of their capital and the paying out of returns without fail.

Conclusion

With the shifting financial risks on the global markets, the importance of risk free investments increases. The Post Office Monthly Income Scheme is an investment scheme that encourages fiscal discipline for people who value their safety and want to earn income from the investment. This is quite commendable justification considering the affordable interest rates offered by the scheme along with its government protection for any one wishing to invest and able to do so. However, as the demand for this scheme increases, interested persons should go to the nearest post office or ask for a consult with a financial advisor in order to know how this scheme works.