Post Office Special Scheme: The Post Office runs a number of small savings programmes. Monthly Income Scheme, sometimes called MIS Account, is the name of one scheme in this. A lump sum payment is made into the Monthly Income Scheme Account in accordance with its name. You will get a set amount as interest each month.
A Five-Year Investment with Enhanced 7.4% Interest Rate
This programme will run for five years. The principal amount is also reimbursed upon maturity. The Finance Ministry changed the interest rates for small savings plans on March 31. Currently, the MIS programme offers an annual interest rate of 7.4 percent. Interest of 7.1 percent was previously being paid on it.
Post Office MIS Guarantees Fixed Interest Rates Over Five Years
The Post Office MIS Scheme’s unique feature is that the interest rate you pay now will stay the same for the following five years. Every quarter, the interest rate is adjusted. The investor won’t be impacted by any interest rate changes that may occur over the course of the five years.
How a Rs 5 Lakh Investment Yields Rs 184,980 in Five Years
An investor will receive Rs 3083 in interest each month if he invests Rs 5 lakh in this plan, according per the Post Office MIS Calculator. For the next five years, this sum will be received on a monthly basis. The account holder will receive interest solely totaling Rs 184980 throughout the course of these five years. The sum of Rs 5 lakh would be reimbursed once the five years have passed.
Budget 2023 Boosts Post Office MIS Scheme
The Post Office MIS Scheme underwent an additional modification in Budget 2023, which was incorporated into the Finance Bill 2023. This has been accepted as well. This regulation is now in force as of April 1, 2023. Now, a person can contribute to the Post Office MIS Scheme with up to Rs 9 lakh. This cap was formerly set at Rs 4.5 lakh. The current limit for holders of joint accounts is Rs 15 lakh. Its previous cap was Rs 9 lakh.