Post Office Monthly Income Scheme serves individuals who are looking for steady income flow may be in their post-working life. A maximum that a person can invest in this a/c is Rs. 4.5 lakh. And considering you invest in a one-time way the maximum amount permissible into the account. You will be entitled to receive an interest @ 7.6% which will be 1.71 lakh in 5 years and the same will be provided as 1.71 lakh / 60 i.e. equivalent to Rs. 2850. And if you are not in need of this sum then for better returns you can divert the amount in post office savings account and probably from there into post office RD for still higher returns.
Notably, post office schemes does not allow transfer of MIS interest into RD account but the same can be done by transferring the interest amount to post office savings account and from there into RD which yields another 7.2% on your investment.
So, if you transfer the interest amount of Rs. 2850 month on month to an RD account that equates to Rs. 1.71 lakh and make an interest @ 7.2% that will be some Rs. 35000. All in all you will be able to turn Rs. 4.5 lakh capital into Rs. 4.5 lakh deposited as principal amount in the MIS scheme which can be redeemed at maturity i.e. upon completion of 5 years plus 1.71 lakh rupees invested as principal amount in RD scheme and Rs. 35,000 drawn as interest on RD scheme with the post office.
So, in 5 years and 1 month's time, your Rs. 4.5 lakh will turn into a corpus of Rs. 6.56 lakhs.