The full form of MIS in banking is Monthly Income Scheme. It may appear a bit technical but it’s actually quite easy and very useful, particularly for those who require regular income post retirement or those who want steady cash flow. How do you make it work? It’s simple. Monthly Income Scheme is all about investing one time at the bank or in a post office. You pick a particular time frame for the investment and here’s the best aspect: every month you will earn a fixed amount of interest on the money you deposit. The principle behind MIS is simple but essential to understand the way banks function in specific regions. When you make an investment in an MIS, the bank utilizes your money to fulfill various purposes, such as providing loans to customers. The interest is earned by the lender from loans? A part of it is paid directly into your pockets each month as income you earn through the program.
What else do you need to Learn about the MIS?
The interest rate is fixed from the beginning and will not change during your investment time. That means you can lay back and relax knowing exactly what you’ll earn each month. However, bear in mind that various banks may offer different rates and they can be affected by the general economic situation. For the time period of investment is fixed, too. If you choose to take your cash early there could be an interest.
