When choosing any investment, the main factors to think about are risk and reward. When looking for secure investments with good returns, saving plans offered by Post Office are one of the better options. One such plan by the post office offering security and good returns is the MIS Scheme. In order to avail the benefits of this plan, you have to make a one-time deposit and then receive interest on the money like pension every month. Moreover, the one-time deposit is also returned back to investor on the scheme’s maturity. Let us know the details of this scheme:
Currently, the PO MIS scheme offers an interest rate of 6.6 percent per annum that is payable on a monthly basis. A person can invest a maximum of Rs 4.5 lakh with this scheme in a single account. For a joint account, the maximum amount is Rs 9 lakh. The tenure of the MIS plan is 5 years.
Eligibility for Post Office MIS account
– Single adult
– Joint Account can be opened with up to 3 adults
– A guardian can open on behalf of minor or person of unsound mind
– A minor above 10 years of age can open account in his own name.
Making a Post Office MIS deposit:
– A person can open an account with a minimum deposit of Rs 1,000 and in multiples of Rs 100.
– Maximum deposit amount: Rs 4.5 lakh for single account, Rs 9 lakh for joint account.
– All the joint holders of in a MIS joint account have equal share in the investment
– An individual’s deposits/shares in all MIS accounts shall not be more than Rs 4.50 lakh.
– The limit for account opened by a guardian on behalf of a minor will be separate.
Monthly Income Scheme Calculator:
– A deposit of Rs 50,000 will get a return of Rs 275 per month or Rs 3300 a year for 5 years. This brings the total return on 5 years to Rs 16,500.
– When depositing Rs 1 lakh, this figure is Rs 550 per month or Rs 6,600 per year, amounting to Rs 33,000 in 5 years.
– A maximum investment of Rs 4.5 lakh brings Rs 2,475 per month, Rs 29,700 per year and Rs 1,48,500 as interest in 5 years.
Interest on Post Office MIS:
– The interest on Post Office MIS shall be payable when the month is complete from the account opening date, until maturity.
– If account holder does not claim monthly payable interest, such interest if any shall not be earning any additional interest.
– Any excess deposit by the account holder will be refunded. PO Savings Account interest will apply from the account opening date to refund date.
– An auto credit facility to claim monthly interest into a savings account at the same post office or ECS is available.
– In the hand of the depositor, the interest is taxable
Closing Post Office MIS account prematurely:
– Deposit cannot be withdrawn within 1 year from the deposit date.
– If MIS account is closed after 1 year and before 3 years from account opening date, a deduction from the principal to the tune of 2 percent will be done with the remainder paid back.
– Closing between 3 years to 5 years, a 1 percent deduction from the principal will be made before payment of remaining amount.
– To close account prematurely, an investor has to submit the prescribed application form along with passbook at the concerned branch of Post Office.