Investing or depositing money has become a big problem for people in India. They are confused about which options are truly beneficial and which can be risky. There are some traditional methods, like fixed deposits and recurring deposits, but apart from these, the Post Office offers a unique option. You can earn money every month by investing in the Post Office Monthly Income Scheme. Let’s learn more about this scheme.
About Post Office Monthly Income Scheme
Even today, many people in the country prefer to invest in government schemes rather than in the stock market, mutual funds, etc. If you also want to get guaranteed returns every month by investing in a post office scheme, then we are introducing one such scheme. The Monthly Income Scheme (MIS) is one of the popular schemes offered by the post office. It is a scheme where you can receive guaranteed returns every month by investing in a lump sum amount.
Benefits of this Scheme:
Under this scheme, you can open both single and joint accounts. A total of Rs 9 lakh can be invested in a single account, while the investment limit in a joint account is Rs 15 lakh.
The government is currently offering an interest rate of 7.4% on deposits under this scheme. You can invest for 5 years. Interest is deposited into your account every month, which you can withdraw as per your need.
If you invest Rs 9 lakh in a single account, you will earn Rs 5,500 every month. In a joint account, if you invest the maximum amount of Rs 15 lakh, you will receive a guaranteed income of Rs 9,250 every month.
Who can open an account:
- A single adult.
- Joint Account (up to 3 adults – Joint A or Joint B).
- A guardian on behalf of a minor or person of unsound mind.
- A minor above 10 years in their name.
About This Deposit:
- Minimum deposit of Rs. 1000, in multiples of Rs. 1000.
- Maximum deposit: Rs. 9 lakh in a single account and Rs. 15 lakh in a joint account.
- In a joint account, all holders share an equal stake in the investment.
- Deposits in all MIS accounts held by an individual should not exceed Rs. 9 lakh.
- The limit for accounts opened by a guardian on behalf of a minor is separate.
About The Interest:
- Interest is payable monthly starting from the date the account is opened until maturity.
- Unclaimed interest does not earn any additional interest.
- Any excess deposit will be refunded, and only savings account interest applies to the excess from the opening date to the refund.
- Interest can be credited to a savings account at the same or any CBS post office via auto-credit or ECS.
- Interest is taxable in the depositor’s hands.
About The Premature Closure:
- No withdrawals are allowed within the first year of deposit.
- If the account is closed after 1 year and before 3 years, a 2% deduction from the principal will apply.
- If the account is closed after 3 years and before 5 years, a 1% deduction from the principal will apply.
- Premature closure requires submitting the prescribed application form with the passbook at the concerned Post Office.
About Maturity:
- The account can be closed after 5 years by submitting the prescribed application form with the passbook at the concerned Post Office.
- If the account holder dies before maturity, the account can be closed, and the amount refunded to the nominee/legal heirs. Interest will be paid up to the preceding month of the refund.
How can Apply online?
- Visit the official India Post website.
- Register or log in to your account.
- Locate and select the “Monthly Income Scheme.”
- Fill out the application with the necessary details and KYC documents.
- Make payment online.
- Receive confirmation and account details.