Post Office Monthly Income Scheme

The customers generally have an option to choose such an investment scheme which is best suited for their income and other needs. More than half of the population would generally opt for such a scheme which is comparatively less risky and feature guaranteed returns. The investments which are not quite risky don’t feature high returns, however, the amount offered is good enough to invest huge amounts in it.

Post Office MIS or Monthly Income Scheme is such a scheme which rewards the depositors with guaranteed returns on their deposit monthly. It features returns through the intact invested capital providing a certain monthly income. Indian Postal Service provides this scheme and Finance Ministry of India administers it.

Characteristics of Post Office MIS:

• As of 1/12/11, the maturity tenure of this plan is five years.
• Both individuals can open this account in the form of joints accounts as well. Moreover, 2-3 adults can open a joint account.
• 1,500 INR is the minimum amount which both the single and joint A/C holders need to deposit.
• All the holders of joint account have equal shares. Single accounts can be converted to joint accounts and vice versa.
• Account can be opened by either cash or cheque. For cheques, the account opening date is the realization date of the cheque from the Govt. A/C.
• Nominee for the accounts can be elected by the elected by the customers at any point of the tenure.
• The customers can transfer the accounts to other branches if they have changed their residence or are facing inconvenience with the current branch.
• Multiple A/Cs can be opened in any post office. It depends upon the highest investment amount limit in addition to the accounts’ balance amount.
• Accounts can even be opened by minor who are of ten years age or above.
• Upon attainment of eighteen years of age, the minor needs to apply for a conversion in their Post Office MIS A/C.
• Interest is credit automatically with the help of auto-credit to the individuals’ savings A/C through post-dated cheques or electronic clearing system at the same post office. If the post office features Core Banking Solution (CBS), then credited interest goes to the savings account monthly at CBS post office.

PO MIS’s Interest plans:

• The revised interest rates which are applied in this scheme is 7.8%p.a. and can be paid monthly, as is stated of 1/3/16,
• The applicant needs to be an Indian citizen in order to apply for this scheme.

Here enlisted are the documents needed for PO MIS A/C:

• Address proof like Voter ID, Aadhaar Card, Passport, Utility bills
• Identity proof like PAN Card, Passport, Passbook, Aadhaar Card
• Photos of Passport size

Applicants need to carry original documents with Xerox copies of the same.

• The customers need to submit an application to withdraw money. The maturity tenure for a PO MIS is five years. Premature withdrawal of interest amount is possible after tenure of 1 year.

If the interest is encashed after the completion of one year but before three years, then an interest of 2% is deducted from the amount whereas an interest of 1% is deducted if it is encashed after three years and before five years.

• For the deposits made on and after 1/12/11, no bonus is applicable on the deposit. For the plans opened before than that, a five percent bonus is applicable on the principle deposit.
• Tax debates aren’t offered on the MIS.

Here enlisted is the maximum amount which can be invested in MIS.

• Note: The max. Amount is calculated on an individual basis, even if in the case of a joint account.

If the depositor has not withdrawn their money from the MIS plan account even after the completion of five years, then they receive only the interest obtained in two years and nothing else. Further details can be obtained from the nearest PO.

• A minor can invest a maximum of three lakh in their deposit account.
• The applicants can appoint their account’s nominee.

In the case of untimely death of the depositor, before reaching the account maturity stage, the nominee or heir should close the A/C. The interest obtained along with the deposited amount will be refunded to the nominee or heir.