From April 01, 2023 to June 30, 2023, the interest rate is 7.4% per annum payable monthly. (Representational image)
Interest will be payable on completion of one month from the date of opening and so on till maturity.
The government has several savings schemes to encourage people to save money and provide them with a safe and secure investment option. Some of the popular savings schemes offered by the Government of India include Public Provident Fund, National Savings Certificate, Sukanya Samriddhi Yojana, Senior Citizen Savings Scheme and Kisan Vikas Patra (KVP).
National Savings Monthly Income Scheme Account is one such government-backed savings scheme in India that provides a fixed monthly income to its investors. It is offered by the Department of Posts, Ministry of Communications and is available at all post offices across the country.
Post Office Monthly Income Scheme Account (MIS)
Post Office Monthly Income Scheme Account (POMIS) is a popular savings scheme offered by the Postal Service. It is a low-risk savings scheme that offers a fixed rate of interest and provides a regular source of income to investors.
Some of the key features of Post Office MIS account are as follows:
- Minimum Rs. 1000/- and in multiples thereof. A maximum of Rs 9 lakh can be invested in a single account and up to Rs 15 lakh in a joint account.
- A depositor can operate more than one account under this scheme subject to the maximum amount that can be invested in a single or joint account.
- The guardian can also open the account on behalf of a minor or a person of unsound mind.
- The account can be prematurely closed after one year but before the end of three years at the deduction of 2% of the deposit amount. If the account is closed after the expiry of three years, 1% of the deposit will be deducted.
Who can open Post Office Monthly Income Scheme Account?
- single adult
- Joint Account (up to 3 adults) (Joint A or Joint B))
- Guardian on behalf of a minor/person of unsound mind
- Minor above 10 years in his own name.
Post Office Monthly Income Scheme Account: Deposit
- Account Minimum Rs. can be opened from 1000 and then multiples of Rs. 1000.
- Maximum Rs. 9 lakh can be deposited in single account and 15 lakh in joint account.
- In a joint account, all the joint holders will have an equal share in the investment.
- The deposits/shares in all MIS accounts opened by a person shall not exceed Rs. 9 lakhs.
- Accounts opened on behalf of a minor as a guardian will have different limits.
Post Office Monthly Income Scheme Account: Interest
- Interest will be payable on completion of one month from the date of opening and so on till maturity.
- If the interest due every month is not claimed by the account holder, no additional interest will accrue on such interest.
- In case of any excess deposit made by the depositor, the excess deposit will be refunded and only PO Savings Account interest will be applicable from the date of account opening till the date of refund.
- Interest can be withdrawn through auto credit to savings accounts held in the same post office or ECS. In case of MIS accounts in CBS Post Offices, the monthly interest can be credited to the savings accounts in any CBS Post Offices.
- Interest is taxable in the hands of the depositor.
Post Office Monthly Income Scheme Account: Premature Closure of Account
- No deposit shall be withdrawn before the expiry of 1 year from the date of deposit.
- If the account is closed after 1 year and before 3 years from the date of account opening, then 2% of the principal will be deducted and the balance amount will be paid.
- If the account is closed after 3 years from the date of account opening and before 5 years, an amount equal to 1% of the principal will be deducted and the balance will be paid.
- The account can be closed prematurely by submitting a prescribed application form along with the passbook to the concerned post office. ,
Post Office Monthly Income Scheme Account: Maturity
- The account can be closed on the expiry of 5 years from the date of opening of the account by submitting a prescribed application form along with the passbook to the concerned post office.
- In case the account holder dies before maturity, the account can be closed and the amount will be returned to the nominated/legal heirs. Interest will be paid up to the last month in which the refund is made.
Post Office Monthly Income Scheme Account: Interest Rate
From April 01, 2023 to June 30, 2023, the interest rate is 7.4% per annum payable monthly.
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