Post Office National Savings Monthly Income Account: Post Office is one of the most preferred options for the salaried middle class in India, who want to invest in risk free options that offer good returns. Recently, the government has announced rates for small savings schemesincluding Post Office National Monthly Income Account, or MIS, which is one of the most popular plans. While the government has kept the rates unchanged at 6.6 per cent, it is still higher than many bank fixed deposit rates.
The Post Office National Savings Monthly Income Account, or Post Office MIS, is one of the best options investors can find to invest in the market, given its high amount of returns. The Post Office Monthly Income Scheme guarantees investors a fixed return on the rate at which the money was initially invested. This means that investors do not have to worry about varying interest rates, even if they are reduced at a later stage.
Post Office MIS: Minimum Deposit Amount
Interested investors who wish to open an MIS account should note that the minimum amount required to open an account is Rs 1,000. Thereafter the deposit should be in multiples of Rs 1,000 as per post office guidelines. This rule has come into force from 1st April 2020. The maximum investment limit is Rs 4.5 lakh for a single account and Rs 9 lakh for joint accounts. An individual can invest a maximum of Rs 4.5 lakh in MIS (including his share in joint accounts). For computing an individual’s share in a joint account, each joint holder has an equal share in each joint account.
Can children have a post office MIS account?
A post office MIS account can be opened by a guardian on behalf of a minor, whereas a minor above the age of 10 years can open the account in his own name. With the interest earned every month, parents can pay their children’s school fees or can also use it in other areas for the betterment of their child.
Post Office MIS Monthly Interest Calculation
If you want to open a single account and deposit Rs 2 lakh in the account, then at the current rate of interest per annum, you will get an amount of Rs 1,100 per month. On the other hand, if you invest Rs 3.50 lakh in the name of the child, you will get an interest of Rs 1,925. If you deposit a maximum of Rs 4.5 lakh, then interest of Rs 2,475 will be payable every month. However, it is to be noted that the interest in the hands of the depositor is taxable. The Post Office MIS account can be closed on the expiry of five years from the date of opening by submitting the prescribed application form along with the pass book at the post office concerned.
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