Post Office Monthly Income Scheme MIS – If you are retired and want a safe investment, then the Post Office Monthly Income Scheme MIS is a good option for you. Even if you want a fixed amount every month for the expenditure, this scheme is right for you.
Post Office Monthly Income Scheme MIS
Monthly Income Scheme (MIS) is an investment scheme run under the Ministry of Communications. This scheme provides interest at the rate of 7.5 per annum. In this, your capital is safe. Plus, there is a better return than debt instruments. It gives more returns than FD. This gives you a fixed monthly income. In this, you can start investing by depositing a minimum of 1500 rupees every month. NRI and Hindu Undivided Family (HUF) can not take advantage of this.
Special Things About Post Office Monthly Income Scheme MIS
1 – Maximum Investment – Rs.9 Lakh
The maturity period for MIS is 5 years. You can invest up to 9 lakh rupees in this scheme. Even if you open a joint account with your wife or children in it, you can invest up to 9 lakh rupees. One person can invest up to 4.5 lakh rupees in this. The account can be opened in the name of the minor as well, but in such an account, Rs 3 lakh can be invested.
Monthly Minimum Investment Limit
- Single Account – Rs. 1,500, Rs. 4.5 Lakh
- Joint Account – Rs. 1,500, Rs. 9 Lakh
2 – No Tax Exemption
Under section 80C of Income Tax Act, this scheme does not get tax exemption. MIS interest is taxable. However, you keep getting your fixed monthly income for this entire period.
3 – Account Transfer Facility
MIS account can transferred. This means that if you have been transferred from one city to another city then your MIS account will transferred to another city. You do not have to pay any fees for this.
4 – More Than One Account Opening Facility
You can open more than one account in MIS. But one person can invest up to 4.5 lakh. If there is a joint account, then more than 9 lakhs will be able to invest. The single account can also changed later to the joint account.
5 – Loss on Withdrawal of Money Before Five Years
There is a disadvantage in withdrawing money before time in this scheme. You will not get any return on the deposit after you withdraw the deposit within one year. Can withdraw money after one year. But withdrawing before 3 years you have to pay 2% penalty. On withdrawal, after 3 years you will get the deposit amount after deduction of 1% from the amount.