To provide financial security to the country’s common people, the central government runs various savings and investment schemes. Today, we will tell you about one such scheme that offers a fixed income every month. We are talking about the Post Office MIS (Monthly Income Scheme). Currently, this scheme offers an interest rate of 7.4 per cent, which is paid every month. In this scheme, you can open an account with a minimum deposit of Rs 1000. Under the Post Office MIS scheme, you can deposit a maximum of Rs 9 lakh in a single account. For a joint account, the maximum deposit limit is Rs 15 lakh.
Open a Joint Account with Your Wife for Full Benefits
If you want to take full advantage of this scheme, you can open a joint MIS account in the post office with your wife. By doing so, you can deposit up to Rs 15 lakh. If you deposit the full amount of Rs 15 lakh in the joint account, you will receive a fixed and guaranteed interest of Rs 9,250 every month. You can add the names of up to 3 adults in a joint account. Additionally, you can open an account under this scheme in your child’s name.
Post Office MIS Scheme Matures in 5 Years
The Post Office MIS scheme matures in 5 years. To close the account, you need to fill out a form and submit it along with the passbook at your branch. Afterwards, the entire balance will be transferred to your post office account. Keep in mind that you cannot withdraw money within the first year of opening the account. If you withdraw funds after 1 year but before 3 years, 2 per cent will be deducted from the principal amount.
Benefits of the MIS Account
- An individual can open an MIS account.
- The account can be opened with cash or a cheque. If opened with a cheque, the account opening date will be the date when the cheque is cleared in the government account.
- A nomination facility is available both at the time of opening and after opening the account.
- The account can be transferred from one post office to another.
- There is no limit on the number of accounts a person can open, but the total investment in all accounts must not exceed the maximum limit.
- An account can be opened in the name of a minor. A minor aged 10 years or above can open and operate the account.
- A joint account can be opened by two or three adults.
- All joint account holders have an equal share in the account.
- A single account can be converted into a joint account and vice versa.
- When a minor turns 18, they must apply to convert the account into their name.
Maturity and Interest Details
- The maturity period of the MIS scheme is 5 years from December 1, 2011.
- Interest can be credited directly to a savings account in the same post office through auto credit, PDCs, or ECS. For MIS accounts in CBS post offices, monthly interest can be credited to any CBS post office savings account.
- Premature withdrawal is allowed after 1 year but before 3 years, with a deduction of 2% from the deposit. After 3 years, a 1% deduction applies.
- A 5% bonus on the principal amount was available for accounts opened between December 8, 2007, and November 30, 2011. No bonus is given for accounts opened on or after December 1, 2011.