Monthly Income Scheme (MIS) is an investment scheme of Indian postal service. It
promises the investor guaranteed returns at 8.5% per annum in the form of fixed
monthly income. Seasoned investors consider MIS to be one of the smartest options
to park funds as it gives you three merits – keeps your capital intact, yields better
returns than debt instruments and assures a fixed monthly income. The money can
be withdrawn in two ways, either directly from post office or get it credited in
your savings account through ECS. The money is usually meant to be withdrawn on
a monthly basis. However, the investor can let it to accumulate over a few months
and then withdraw it but it’s not of much use as the idle money will not earn you
any interest.