Monthly Income Scheme of Post Office (MIS)

Currently, the post office is offering several savings schemes, of which monthly income scheme (MIS) is a major option. This scheme is ideal for investors who want to get income every month by investing funds at one time. Under this scheme, a maximum of Rs 9 lakh can be deposited in a single account and up to Rs 15 lakh in joint account. Interest is received every month on the amount made, which continues from opening to maturity. Currently, the interest rate of this scheme is 7.4 percent.

Term of deposit

In this scheme, investors can deposit the amount for 5 years at a time, making them interest for 5 consecutive years. After maturity, the amount deposited is refunded.

Evacuation rules

If you need money before 5 years, there are some rules for withdrawal. During the first year, withdrawal is not allowed. After one year, you can withdraw money, but some deduction will be made from your deposit as penalty.

Characteristics of the scheme

This scheme is supported by the government, which keeps your investment safe. The lock-in period for the monthly income scheme is 5 years. At the time of maturity, you can withdraw your amount or re -invest. You can invest in multiples of Rs 1000 according to your capacity. This scheme provides more returns than FD. Note that your investment does not come under Section 80C and TDS also does not apply. You can open more than one account in your name, but the total deposit should not exceed Rs 9 lakh.

Account opening process

Only Indian residents can open POMIS account. NRIs cannot avail this scheme. Any adult can open POMIS account, and an account can also be opened by a minor aged 10 years or above. The minor will have to apply to change the account in his name at the age of 18.

Opening Pomis account is simple. You have to get a Pomis application form from the post office. Fill it, submit it with your ID and photocopy of your residence certificate and 2 passport size photos. Also take original documents for verification. The signature of a witness or nominee is required on the form. Initial deposits can be done through cash or check. After processing, the post office officer will provide you the details of your new account.