The traditional mode of post office savings remains relevant even in today’s dynamic world. Even as digital banking makes inroads into the consumer space, there are many still banking on post office products like monthly income scheme to get their day-to-day life going. This kind of product is best suited to those requiring a stable flow of income.

The money deposited in the scheme will yield interest to get it bigger over a period of time. To know the exact benefits, you must check the function of
Post Office Monthly Income Scheme Calculator. But you need not go anywhere as the article is ready with its analysis on the calculator’s function.

How to Calculate the Earnings from Post Office Monthly Scheme?

Now, the answer to the question hides within three elements - investment amount, the rate of interest and the period for which the money is likely to be parked. The minimum amount with which you can start the scheme is ₹1,500, while the maximum is up to ₹4,50,000. As far as the rate of interest is concerned, it’s standing at 7.3% per annum. The interest is payable every month till 5 years. The monthly income scheme (MIS) comes with a fixed maturity of 5 years, one year less than what was the case before 2011.

For example, you have a surplus of ₹5 lakhs to deposit in MIS. Over a period of 5 years that the deposit would be in, it will yield a monthly interest of ₹3,023.16 (approx.) at 7.3% interest rate. You will get the entire ₹5 lakhs at maturity. Now, you can either withdraw the interest or let it accumulate on a recurring deposit basis. The choice is yours. Those who are at the mid of their professional life can let the earnings accumulate, while senior citizens would like to withdraw interest as the source of income can get limited post the retirement.

Features & Benefits of Post Office MIS

The scheme is loaded with the following features and benefits.

The account can be opened by an individual either by cash or cheque. In case of cheque, the realization date will be considered as the account opening date.
There’s no limit to the number of accounts an individual can open. However, there’s a cap on the maximum investment i.e. ₹4,50,000
The account can be transferred from one post office to another
A minor can have an account on his/her name. Minor with an age of 10 years and above are allowed to open and operate the account.
Two or three adults can open a joint account with all of them likely to have an equal share
Both single and joint accounts are convertible to each other
Nomination facility available on these accounts

Documents You Need to Open MIS

To get an MIS account opened, you shall be ready with the following documents and testimonials.

Identity Proof - PAN Card/Aadhaar Card/Driving License/Voter ID/Passport/declaration in Form 60 or 61 as per the Income Tax Act
Address Proof - Aadhaar Card/Passport/Driving License/Voter ID/Utility Bills
Passport Size Photographs
Account Opening Form

How to Open MIS?

You can download the account opening form online by visiting the website of India Post. Post download, you can take a print out of the form and fill all the relevant details in the form. Affix your signature and paste your photograph in the space prescribed. Submit the duly filled form along with your documents to any of the post offices. The post office officials will check the details thoroughly before opening an account. After the account is made live, the interest will be paid to you at the end of every month.

Hope it’s been a good session learning Post Office Monthly Income Scheme Calculator and catching several other details. Do think about the scheme, particularly when you have a big surplus to invest. It is one of the safest avenues of investment in today’s financial space.

Author's Bio: 

Vikas Das, one of the seasoned writers in financial domain, has expressed his ideas on Post Office Monthly Income Scheme Calculator. Hope the article will enlighten you on the post office savings.