What is Post Office MIS?

Background

The Post Office Monthly Income Scheme (MIS) is a small-savings product that pays a fixed monthly interest on a lump-sum investment. It is designed for investors seeking regular, stable income with low risk.

Explanation

You invest up to the permitted limit for a fixed tenure. Interest is credited monthly at the declared MIS rate, and your principal is returned at maturity. Interest is taxable and does not keep up with high inflation, but MIS can be one of the safe income buckets in retirement.

Example

Investing ₹9 lakh in MIS at 7.4% yields about ₹5,550 per month. While not inflation-beating, it offers stable cash flow that can fund essential bills while your growth assets stay invested.

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