At present various savings schemes are run by the post office. One of these is Monthly Income Scheme (MIS). This scheme remains the first choice for those who want to invest once and earn every month. At present various savings schemes are run by the post office. One of these is Monthly Income Scheme (MIS). This scheme remains the first choice for those who want to invest once and earn every month. A maximum of Rs 9 lakh can be deposited in an account opened under the Post Office Monthly Income Scheme and a maximum of Rs 15 lakh can be deposited in a joint account. In this scheme, you are given interest every month on whatever amount the investor deposits. That means you will be given interest amount from account opening till maturity. At present the interest rate of this scheme is 7.4 percent.
For how many years can you deposit?
In Post Office MIS, the amount is deposited for 5 years at a time, that is, you can get your income by taking interest continuously for 5 years. After maturity the deposited amount is returned to you.
Premature Withdrawal Rules
If you need the money before five years and want to withdraw it, or want to continue the monthly earning plan for more than 5 years, there are different rules for the same. If after investing in this scheme, you want to withdraw the amount before the maturity period, then this facility is not available for 1 year. After 1 year, you get the facility to withdraw money from the account, but some money is deducted from your deposit as a penalty.
Features of the scheme
In this scheme, your money remains safe till maturity because it is a government-backed scheme. The lock-in period for Post Office MIS is 5 years. When the scheme matures, you can withdraw the invested amount or reinvest it. The biggest thing is that you can invest this amount in multiples of 1000 as per your capacity. You earn income in the form of interest every month. Returns are higher compared to other fixed income investments like FDs. Most importantly, your investment is not covered under Section 80C. TDS is also not applicable. You can open more than one account in your name. But the total deposit cannot exceed Rs 9 lakh. You can open a joint account with 2 or 3 people. In such a situation, a total amount of up to Rs 15 lakh can be invested in this account.
Who can open an account?
Only an Indian resident can open a POMIS account. NRIs cannot avail the benefits of this scheme. Any adult can open a POMIS account. You can open an account on behalf of a minor aged 10 years or above. They can avail the fund when they turn 18. The minor has to apply for changing the account in his name after attaining majority.
how to open account
Opening a POMIS account is very easy. First of all you have to bring POMIS application form from the post office. After filling this form, submit it to the post office along with photocopies of your ID and residential proof and 2 passport size photographs. Carry original documents for verification. The signature of your witness or nominee is required on the form. The initial deposit can be made through cash or cheque. In case of post-dated cheque, the date of the check will be the date of account opening. Once the processing is complete, the post office officer will give you the details of your newly opened account.
