The Post Office Monthly Income Scheme also assures fixed returns to investors at the initial rate of investment.
New Delhi: The India Post’s National Savings Monthly Income (MIS) scheme is one of the most widely known risk-free savings plans in the country. In general, India Post’s investment options are among the most trusted in the market. While they provide a low return when compared to other options, their risk-free nature and government backing make them popular among investors, particularly older ones. The Post Office MIS policy is designed for those who want to invest their money in a government-run scheme that guarantees fixed returns.
The Post Office Monthly Income Scheme also assures fixed returns to investors at the initial rate of investment. Apart from that, it serves as a tax-saving scheme for investors with middle and low incomes, who can claim tax exemption under the Income Tax Act by investing in this scheme.
Read More: 10 Personal Finance rules millennials should follow
By submitting the necessary documents, an account under this scheme can be opened at the nearest post office. Interested investors who want to open an MIS account should keep in mind that the minimum amount required to open the account is Rs 1,000. Following that, deposits must be made in multiples of Rs 1,000, according to Post Office guidelines. This rule went into effect on April 1, 2020.
The maximum investment limit for a single account is Rs 4.5 lakh and Rs 9 lakh for joint accounts. Individuals can invest up to INR 4.5 lakh in MIS (including his share in joint accounts). Each joint holder has an equal share in each joint account when calculating an individual’s share in a joint account.
Read More: Small savings schemes interest rates to go down after PF rate cut? Centre could finalise on March 31
The government adjusts the interest rate based on market conditions, and the rate for the quarter ending September 30, 2021 was set at 6.6 percent per year. Investors can either withdraw the interest from the post office or have it transferred to their savings account. The option to transfer funds to a recurring deposit account has also been added by the Post Office.
So, if an investor invests Rs 4 lakh in this scheme, he or she will receive a monthly income or return of Rs 2000. Following the completion of the maturity period, the investor may choose to withdraw or re-invest the amount.
It should also be noted that the interest for the post office MIS scheme will be payable at the end of each month beginning with the date of opening and continuing until maturity. Interest can be withdrawn through auto credit into a savings account at the same post office, or into an ECS. Monthly interest on MIS accounts at CBS Post Offices can be credited to savings accounts at any CBS Post Office.
Only a resident Indian can open a Post Office MIS account. By submitting the necessary documents, any adult can open an account with the nearest Post Office. POMIS accounts can also be opened for minors over the age of ten. When they reach the age of 18, they will be able to take advantage of the benefits.
