In India, one such government-backed savings programme which offers its investors a set monthly income is the National Savings Monthly Income Plan Account. It is offered by the Ministry of Communications Department of Posts and is accessible at all post offices in the country.
Account for the Post Office Monthly Income Scheme (MIS)
Also known as the Post Office Monthly Income Scheme Account, the POMIS Account is a well-known savings initiative offered by the Post Office. It is a low-risk savings strategy offering investors a reliable stream of income with a fixed interest rate.
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Minimum of Rs. 1000 and multiples of that. You may invest up to Rs. 9 lakhs in a single account and Rs. 15 lakhs in a combined account.
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Subject to the maximum amount that may be invested in a single, or joint account, under this system, a depositor may operate more than one account.
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A guardian may also open an account for a child or someone who is mentally incompetent.
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After one year but before the end of three years, the account may be prematurely cancelled with a 2% penalty. If the account is closed before the three-year period has passed, 1% of the initial deposit will be taken out.
Account for the Post Office Monthly Income Scheme: Deposit
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A minimum of Rs. 1000 and then multiples of Rs. 1000 can be used to start an account.
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A single account can only have a deposit of up to Rs. 9 lakhs, while a joint account can have up to Rs. 15 lakhs.
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All joint holders in a joint account are entitled to an equal part of the investment.
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A person's total deposits/shares in all MIS accounts they have opened can’t exceed Rs. 9 lakhs.
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The cap for accounts formed as a guardian on behalf of a minor shall be different.
Post Office Monthly Income Scheme Account: Interest
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Interest must be paid at the end of each month from the opening date until maturity.
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The interest due each month will not accrue any further interest if it is not collected by the account holder.
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The interest rate from April 1, 2023, until June 30, 2023, is 7.4% per year, payable monthly.
