The government has a number of savings schemes to encourage people to save money and to provide them with a safe and secure investment option. Some of the popular savings schemes offered by the government of India are Public Provident Fund, National Savings Certificate, Sukanya Samriddhi Yojana, Senior Citizen Savings Scheme and Kisan Vikas Patra (KVP), among others.
The 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)
The 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.
Here are some key features of the Post office MIS account:
- Minimum Rs 1000/- and in the multiples thereof. Maximum Rs 9 Lakhs in single account and Rs 15 lakhs in joint account can be invested.
- 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.
- A guardian may also open an account on behalf of a minor or a person of an unsound mind.
- 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.
Who Can Open a Post Office Monthly Income Scheme Account?
- A single adult
- Joint Account (up to 3 adults) (Joint A or Joint B))
- A guardian on behalf of minor/ person of unsound mind
- A minor above 10 years in his own name.
Post Office Monthly Income Scheme Account: Deposit
- Account can be opened with a minimum of Rs. 1000 and then multiple of Rs. 1000.
- A maximum of Rs. 9 lakh can be deposited in a single account and 15 lakh in Joint account.
- In a joint account, all the joint holders shall have equal share in investment.
- Deposits/shares in all MIS accounts opened by an individual shall not exceed Rs. 9 lakh.
- Limit for accounts opened on behalf of a minor as guardian shall be separate.
Post Office Monthly Income Scheme Account: Interest
- Interest shall be payable on completion of a month from the date of opening and so on till maturity.
- If the interest payable every month is not claimed by the account holder, such interest shall not earn any additional interest.
- 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.
- 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.
- Interest is taxable in the hand 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, a deduction equal to 2% from the principal will be deducted and the remaining amount will be paid.
- If an 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.
- Account can be prematurely closed by submitting a prescribed application form with a pass book at the concerned Post Office.
Post Office Monthly Income Scheme Account: Maturity
- Account may be closed on expiry of 5 years from the date of opening by submitting a prescribed application form with a pass book at the concerned Post Office.
- 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.
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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