Monthly Income Scheme – MIS by Post Office for Income
What are the benefits of MIS?
This gives you an opportunity to get regular income after retirement for your necessity. It gives you 8.4% annual return paid in 12 equal parts on monthly basis. This product is for 5 years and total 4.5 lacs can be invested in one name and 9 lacs in joint name, in Post Office.
Is there any Tax benefit?
There is no tax benefit attached with this product. The returns from the scheme are taxable in the hands of individuals.
Is it suitable for individuals?
No plan is good or bad, only the situation of individual decides whether he or she should buy the product or not.
You should not buy any plan without planning your need at retirement. This plan gives you money for expenses and hardly adds any value to your purchasing power.
By the end of the term of this product your capital loses its purchasing power by 32% if inflation for the period remains at 8% for you. Investment without knowing your need you can have income for some time but with passing passage of time the amount will be insufficient for you.
The answer is comprehensive customized life planning, this makes you plan your life with approximately all the domains of life with long horizon.
To carry out all your responsibilities you need to plan your life.
|Year||Your investment in Rs.||Annual Return @ 8.4%||Inflation||Value of Your Investment|
|First Year||900000||75600||8%||Minus by 7.4%|
|After 3 years||900000||75600||8%||Minus by 20.6%|
|After 5 years||900000||75600||8%||Minus by 32%|