Post Office National Savings Monthly Income Account: The National Savings Monthly Income (MIS) scheme offered by the India Post is one of the most popular risk-free savings schemes in the country. In general, investment options offered by India Post are one of the most trusted schemes in the market. While they offer low return compared to other options, their risk-free nature and government backing makes it hit among investors especially the old school ones. The Post Office MIS policy caters to those who want to put their money in a government-run scheme, which will guarantee fixed returns.
The Post Office Monthly Income Scheme also guarantees fixed returns to investors at the rate of which the money was invested initially. Apart from this, it acts as a tax saving scheme for middle and low income group investors, who can claim tax exemption under the Income Tax Act by investing in this scheme.
An account under this scheme can be opened at the nearest post office by furnishing the required documents. Interested investors who want to open an MIS account must note that the minimum amount for opening of the account is Rs 1,000. The deposits thereafter has to be in multiples of Rs 1,000, as per the guidelines of the Post Office. This rule has come into effect from April 1 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 maximum INR 4.5 lakh in MIS (including his share in joint accounts). For calculation of share of an individual in joint account, each joint holder have equal share in each joint account.
The government revises the interest rate based on the market situation and for the quarter ending on September 30, 2021, the interest rate was set at 6.6 per annum. Investors have the option to withdraw the interest directly from the post office or get it transferred to their savings account. The Post Office has also added the option to move the funds to a recurring deposit account.
So, in case of investment of Rs 4 lakh in this scheme, the investor shall receive a monthly income or return of Rs 2000. After completion of the maturity period, the investor may choose to withdraw the sum or re-invest it.
One must also note that the interest for post office MIS scheme shall be payable on completion of a month from the date of opening and so on till maturity. Interest can be drawn through auto credit into savings account standing at same post office, or ECS. In case of MIS account at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post Offices.
The Post Office MIS account is available for only a resident Indian. Any adult can open their account with the nearest Post office by furnishing the required documents. POMIS accounts can also be opened for minors who are 10 years or above in age. They will be able to avail the benefits when they turn 18.
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