We all look for investment instruments that are not only secure but also provide high-interest rates. The government-run Post Office Monthly Income Scheme (POMIS) is one of the small savings investment schemes that offer investors investment options with guaranteed monthly income. Experts say this scheme is especially suited for conservative investors and senior citizens.

This scheme is one of the popular investment options in India, as it can be started with a nominal amount. MIS is a low-risk investment option and comes with an investment tenure of 5 years. The current interest rate offered by the Post Office Monthly Income Scheme is 6.6 per cent per annum.

Here are some of the features and benefits of the Post Office monthly income scheme;

The money deposited by investors is not subject to market risk, which makes the scheme a low-risk investment, and popular among conservative investors. As this is a government-backed scheme, the investments are also protected by the government until maturity.

The monthly income scheme comes with a lock-in period of 5 years. However, if you wish to continue your investments, you can withdraw and re-invested once the investment matures.

You can start your investment with a minimum of Rs 1,000 which can be multiplied over time.

Note that the income from MIS is subjected to taxation. Investments in this Post Office scheme does not fall under section 80C. However, it has no TDS.

From the first month of making investments in this scheme, you will receive the payout from this scheme. The payout, however, will come at the end of every month, and not the beginning.

The returns from the investments in the monthly income scheme earn guaranteed returns in the form of interest every month. Having said so, experts point out that returns do not beat inflation.

Even though as an investor, you can have multiple account ownership, however, the total deposit amount cannot exceed Rs 4.5 lakhs altogether.

You can also open a joint account with MIS, with up to 3 people. However, keep in mind that the account will belong to all account holders equally, irrespective of who is contributing.

An account can be opened on behalf of a minor aged 10 or above. The minor will be able to access the funds after reaching 18 years of age.