India Post, which has a network of over 1.5 lakh post offices across the country, provides a range of financial services. For the quarter ending June 30, India Post – under the Department of Posts – offers several savings schemes with interest rates ranging from 4 per cent to 8.7 per cent at designated post office branches. One such savings scheme offered by India Post is the Monthly Income Scheme (MIS).
Investment in the Monthly Income Scheme fetches interest at the rate of 7.3 per cent for the current quarter, according to India Post’s website – indiapost.gov.in.
Here are five things to know about post office monthly income scheme (MIS) account:
1. Interest Rates: The post office MIS account offers an interest rate of 7.7 per cent per annum, which is payable monthly. An MIS account can be opened via payment by cheque or cash. The maturity period of the account is five years, according to the India Post website.
2. Amount: The minimum amount required to set up a monthly income account is Rs. 1,500. The maximum investment limit is Rs. 4.5 lakh in a single account and Rs. 9 lakh in a joint account, according to India Post.
3. Premature withdrawal: The account can be prematurely encashed after one year but before three years at the discount of 2 per cent of the deposit and after three years at the discount of 1 per cent of the deposit. Discount means deduction from the deposit.
4. Number of accounts: MIS account can be transferred from one post office to another. Investors can also open any number of MIS accounts in any post office subject to maximum investment limit by adding balance in all accounts, according to the India Post website.
5. Other facilities: Nomination facility is available at the time of opening and also after opening of MIS account.