Post Office monthly income scheme: Account can be opened with a minimum of Rs. 1000
The Post Office National Savings (Monthly Income Account) Scheme (MIS) is a government-backed small savings scheme that offers a fixed interest rate and monthly income to depositors. It is among those options for investors who look for a safe and reliable way to earn a regular income.
National savings schemes in India are considered safe as they are backed by the government. However, it’s important to consult a financial advisor for a suitable investment suggestion according to your savings goals.
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Post Office National Savings (Monthly Income Account) Scheme
- Minimum Rs 1000 in the multiples thereof. Maximum Rs 9 lakhs in single account and Rs 15 lakhs in joint account.
- Account matures in 5 years.
- A depositor may operate more than one account under this scheme subject to the ceiling of maximum amount, which may be invested in a single, or joint account.
- Account can be closed prematurely after one year but before the expiry of three years on deduction of 2% of the deposit. In case the account is closed after expiry of three years, 1% of the deposit shall be deducted.
- Post office monthly income scheme interest rate: (October 1 to December 31, 2023)- 7.4%
According to the latest information available on the official web portal of India Post, salient features of the scheme are;
(a)Who can open:-
(i) a single adult
(ii) Joint Account (up to 3 adults) (Joint A or Joint B))
(iii) a guardian on behalf of minor/ person of unsound mind
(iv) a minor above 10 years in his own name.
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(b)Deposit:-
(i) Account can be opened with a minimum of Rs. 1000 and in multiple of Rs. 1000.
(ii) A maximum of Rs. 9 lakh can be deposited in a single account and 15 lakh in Joint account.
(iii) In a joint account, all the joint holders shall have equal share in investment.
(iv) Deposits/shares in all MIS accounts opened by an individual shall not exceed Rs. 9 lakh.
(iv) Limit for accounts opened on behalf of a minor as guardian shall be separate.
(c)Interest:-
(i) Interest shall be payable on completion of a month from the date of opening and so on till maturity.
(ii) If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.
(iii) In case any excess deposit made by the depositor, the excess deposit will be refunded back and only PO Savings Account interest will be applicable from the date of opening of account to the date of refund.
(iv) Interest can be drawn through auto credit into savings accounts standing at the same post office, or ECS. In the case of MIS accounts at CBS Post offices, monthly interest can be credited into savings accounts standing at any CBS Post Offices.
(v) Interest is taxable in the hand of the depositor.
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(d)Premature closure of account:-
(i) No deposit shall be withdrawn before the expiry of 1 year from the date of deposit.
(ii) If the account is closed after 1 year and before 3 years from the date of account opening, a deduction equal to 2% from the principal will be deducted and the remaining amount will be paid.
(iii) If the account closes after 3 years and before 5 years from the date of account opening, a deduction equal to 1% from the principal will be deducted and the remaining amount will be paid.
(iv) Account can be prematurely closed by submitting a prescribed application form with a pass book at the concerned post office.
(e)Maturity:-
(i) Account may be closed on expiry of 5 years from the date of opening by submitting prescribed application form with pass book at concerned post office.
(ii) In case the account holder dies before maturity, the account may be closed and the amount will be refunded to nominee/legal heirs. Interest will be paid up to the preceding month, in which refund is made.
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