Post Office Monthly Income Scheme: National savings schemes in India are widely regarded as secure due to their government backing.
Post Office Monthly Income Scheme: Are you looking for a safe and steady stream of income that pays you every month? The Post Office Monthly Income Scheme (POMIS) might be the perfect fit! With attractive interest rates and government backing, it could be your key to financial stability. Dive deeper to learn how MIS can turn your savings into a reliable monthly income source.
The Post Office National Savings (Monthly Income Account) Scheme (MIS) is a government-supported small savings initiative providing a stable interest rate and monthly earnings to participants.
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 a single account and Rs 15 lakhs in a joint account.
- The account matures in 5 years.
- A depositor may operate more than one account under this scheme subject to the ceiling of the maximum amount, which may be invested in a single, or joint account.
- The 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 the expiry of three years, 1% of the deposit shall be deducted.
- Post office monthly income scheme interest rate: 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 a minor/ person of unsound mind
(iv) a minor above 10 years in his 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 a joint account.
(iii) In a joint account, all the joint holders shall have an equal share in the 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 is 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 the 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 Office.
(v) Interest is taxable in the hands of the depositor.
(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) An account can be prematurely closed by submitting a prescribed application form with a passbook at the concerned post office.
(e)Maturity:-
(i) Account may be closed on expiry of 5 years from the date of opening by submitting the prescribed application form with passbook at the concerned post office.
(ii) In case the account holder dies before maturity, the account may be closed and the amount will be refunded to the nominee/legal heirs. Interest will be paid up to the preceding month, in which a refund is made.
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