The new cases of Post Office Monthly Income Scheme Kovid-19 have seen tremendous boom in the last few days. This is once again seeing an atmosphere of uncertainty all around. There is a lot of volatility in the stock markets as well.
New Delhi, New cases of Covid-19 have seen tremendous boom in the last few days. This is once again seeing an atmosphere of uncertainty all around. There is a lot of volatility in the stock markets as well. In such a situation, investors are thinking about investing in guaranteed returns or low risk instruments. Post Office’s Monthly Income Scheme (MIS) also falls in this category. It is a low-risk investment scheme, with income in the form of interest every month. This scheme is for those who need regular income once invested.
Monthly Income Scheme is quite popular in the country due to the government supported scheme. Investing in this scheme is considered relatively safe as it does not include the risks associated with the stock market.
Rate of interest
The rate of interest under this scheme has remained at 6.6 percent per annum since April 1, 2020. However, interest is paid on monthly basis by the post-office.
How much can you invest
This scheme can be invested in multiples of Rs 100. A minimum investment of Rs 1000 can be made in this scheme. A person can invest a maximum of Rs 4.5 lakh in this scheme alone. At the same time, up to nine lakh rupees can be jointly invested in this scheme. Both are equal when held as joint holders.
Who can open MIS Account
- Any adult can open this account.
- A joint account can also be opened in this scheme. However, only a maximum of three adults can open a joint account.
- In the name of a minor child, his guardian can invest in this scheme.
- The limit of the account opened in the name of the child will be different from the limit of investment made by the person.
How to get interest
- Interest in this scheme starts accruing with the completion of one month of account opening. This continues till the period of maturity.
- If the accountholder does not claim the interest received every month, then no additional interest is paid on the amount of that interest.
- If the depositor deposits any additional amount, he will be refunded and at the time of refund at the rate of interest received on the post office saving account on the additional amount.
Can I close MIS Account first
- The thing to keep in mind here is that deposits cannot be withdrawn for a period of one year after the account is opened.
- If the account is closed between one year and three years, then two percent of the principal will be deducted and the remaining amount will be returned.
- If you close the account between three to five years, then the amount will be returned to you after deducting one percent from your principal.
- On filling the form in a prescribed format and submitting it with the passbook in the respective post office, you can close your account before maturity.
Maturity
Five years after opening an account, you can close your account by filling a form.
In case of unfortunate death of the account holder before maturity, the account can be closed and the deposit amount is refunded to the account holder’s nominee or law heir. Until the refund is processed, the interest for the same day is payable by the post office.
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