RBI reduced repo rate: The same old story is being repeated once again in the financial world of India—banks’ interest rates are continuously decreasing, while the post office stands strong with its traditional and reliable investment options. In the year 2025, the Reserve Bank of India (RBI) cut the repo rate by a total of 1% to give impetus to the economy. This reduction, which took place three times in February, April, and June, directly affected the savings of the common people. Banks immediately reduced the interest on savings accounts and fixed deposits, leaving small investors disappointed.
But in the meantime, the schemes of the post office have emerged as a sigh of relief for the general public. Especially the Post Office Monthly Income Scheme (MIS), which has once again caught the attention of millions of people due to its stable interest rate and safe investment.
Why is the Post Office Monthly Income Scheme special?
The biggest advantage of the Post Office Monthly Income Scheme is its simplicity and reliability. In this scheme, the investor has to invest money only once, and after that, they get a fixed income every month for the entire five years. After the completion of five years, the investor gets their entire principal amount back.
This scheme is no less than a pension for those who need a regular income. Especially for retired employees, housewives, or those who want to stay away from risky investments like the stock market, this scheme is proving to be very beneficial for them.
How much income will there be every month?
Till August 2025, 7.4% annual interest is being received on this scheme. This interest is transferred directly to your savings account every month, so that the investor does not face any problem.
For example, if a couple deposits ₹ 14.60 lakh in a joint account, then they will get a guaranteed income of about ₹ 9,003 every month. That is, more than one lakh rupees of interest will come directly into the hands in a year. At the same time, a maximum investment of ₹9 lakh is allowed in a single account, and this limit goes up to ₹15 lakh in a joint account.
Why is it a better option than a bank?
Today, when banks have reduced the interest on savings and fixed deposits after the reduction in repo rate, this scheme of the post office has become even more attractive with a fixed interest rate. The most important thing is that it is backed by the government, which means the investor’s money is completely safe.
While options like the stock market and mutual funds tempt you with high profits but also bring risks, the post office MIS assures a fixed income every month. This is the reason why this scheme remains popular in both rural and urban areas.
What is the lesson for investors?
In the changing era of savings, it has become clear that depending only on banks is not enough. For those who want to keep their money safe and also want to get a fixed income every month, the Post Office Monthly Income Scheme has emerged as an excellent option.
Government guarantee, stable interest rate, and monthly income without risk – these three reasons make this scheme special. This is the reason why even today, millions of people make it an important part of their financial portfolio.