From mint · Shivam Shukla · · 1m 10s
Post Office MIS vs Bank FD: Monthly Income Comparison
₹9 lakh in Post Office MIS earns ₹5,550 monthly vs ₹4,875 from bank FD.
In brief
₹9 lakh in Post Office MIS earns ₹5,550 monthly vs ₹4,875 from bank FD. A ₹9 lakh investment in Post Office MIS at 7.4% interest yields ₹5,550 monthly before tax, higher than bank FD's ₹4,875 at 6.5%. Originally reported by mint.
Investment Comparison
A ₹9 lakh investment in Post Office MIS earns ₹5,550 monthly at 7.4% interest, compared with an indicative ₹4,875 from a bank FD at 6.5%.
Key Differences
Post Office MIS has a 5-year tenure and returns principal at maturity, while bank FD rates vary by bank and eligibility.
Tax Implications
Both schemes offer tax-free interest up to ₹10 lakh annually under Section 80C, but MIS has higher monthly payouts.
Senior Citizen Rates
Senior citizens may qualify for FD rates exceeding 8% through select small finance banks.
Investment Advice
Seek professional guidance before investing to ensure a beneficial investment decision.
Tax-Free Limit
The tax-free limit for interest under Section 80C is ₹10 lakh annually for both schemes.
Conclusion
At current rates, Post Office MIS generates ₹8,100 more annually than bank FD before tax.
The short version
A ₹9 lakh investment in Post Office MIS at 7.4% interest yields ₹5,550 monthly before tax, higher than bank FD's ₹4,875 at 6.5%.
