₹9 lakh in Post Office MIS vs ₹9 lakh in bank FD: Which gives a higher monthly income?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Investing ₹9 lakh in a Post Office Monthly Income Scheme at 7.4% earns ₹5,550 monthly.
- ✓A bank FD at 6.5% generates ₹4,875 monthly.
- ✓The Post Office scheme gives ₹675 more each month.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Livemint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
In the current difficult-to-predict geopolitical environment, equity markets in India have underperformed over the last few years. This brings focus to fixed-income instruments such as small savings schemes and bank fixed deposits.
Now, investing ₹9 lakh in a Post Office Monthly Income Scheme (MIS) or a bank fixed deposit (FD) can help an individual generate regular income without facing market-linked volatility.
This regular income will be generated while keeping the principal out of market-linked investments. Still, the monthly income will ultimately depend on the interest rate and payout terms.
Furthermore, at the current Post Office MIS interest rate of 7.4%, an investment of ₹9 lakh earns ₹5,550 a month before taxation. In comparison, a bank FD offering investors an illustrative annual interest rate of 6.5% will generate an indicative monthly income of ₹4,875 before taxation, subject to the banking institution's payout calculations.
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