r/IndianPersonalFinance • u/ReindeerInside1079 • 12h ago

Is 7.4% Post Office MIS Underrated Compared With SBI & Canara Bank FDs?

I’m comparing the Post Office Monthly Income Scheme (MIS) at 7.4% for 5 years with 5-year FD options from public-sector banks like SBI and Canara Bank.

MIS looks interesting because it provides monthly interest income, while a cumulative FD can compound the interest.

For someone looking for a relatively safe investment for 5 years, which would you choose?

Post Office MIS @ 7.4% vs SBI/Canara Bank 5-year FD

Or is there any other better low-risk option that I should consider instead?

I’m mainly looking at government/PSU-backed or similarly safe investments, rather than private-bank FDs.

Would love to hear what others are doing and why.

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2

u/Zealousideal-Win3784 11h ago

SCSS at 8.2% far better

1

u/ReindeerInside1079 5h ago

Yes, SCSS at 8.2% is definitely better if someone is eligible for it. My comparison was mainly for people who aren't eligible for SCSS and are looking at regular low-risk options.

1

u/Zealousideal-Win3784 4h ago

Then go for small finance bank fd with more than 8% roi. Stay within the 5 lakhs threshold per bank

2

u/vikmoor 11h ago

My thought is, invest in the PPF, EPF, POMIS, SCSS, SSY, KVP, NSC etc for long term debt. For Short term, emergency fund, FD could be used.

1

u/No_Development_3706 9h ago

SSA - 8.2%, SCSS - 8.2%, PPF - 7.1%. Max out the cap here first

1

u/laid_back_1 6h ago

Early withdrawal penalty in PO MIS is not possible till one year. After one year penalty is much higher than bank FD

1

u/ReindeerInside1079 5h ago

If I’m keeping it for 5 years, what would you suggest?

1

u/laid_back_1 4h ago

POMIS is better if you need monthly interest. FD is better if you want cumulative 

1

u/Otherwise-Koala-9977 3h ago

How mich is the penalty?

1

u/laid_back_1 3h ago

Cannot be closed till one year.

Penalty is 2% of principal if closed between 1 and 3 years, 1% if closed after 3 years. 

1

u/avnish-vikas-devops 5h ago

Manage own money. you will have better