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Post Office Monthly Income Scheme (MIS)
What is Post Office Monthly Income Scheme? The Post Office Monthly Income Scheme is a type of small saving scheme that is found in India. These schemes are provided by the Government of India and are one of the most widely used investment options that are there in India. . Duration: P. O. Monthly Income Scheme has an maturity period of 6 years. Mode of Investment: Single, Joint (Two or more), Minor with parent/guardian and Minor who has attained age of 10 Investments: Min Amount Rs. 1,000/- and additional investment in multiples of 1,000/- Max Amount Rs. 3,00,000/- (if Single) or Rs. 6,00,000/- (if held jointly). Returns: P. O. Monthly Income Scheme provides an interest rate of 8.0% per annum which is paid monthly Advantages: · Depositor can have more than one account in the same post office or in any other. · Facility is there at the time of opening the account or anytime during the tenure of the account. · Is permitted if deposit is more than one year old. A deduction of 5% is levied from the principal amount if withdrawn prematurely; the 10% bonus is also denied. · A bonus of 10% is paid at the time of maturity. · A Passbook is issued at the time of opening the account. If the passbook is lost, or it is mutilated, a duplicate is issued on payment of a charge. · Tax benefits can be availed under section 80L. No Tax benefits are provided under section 88. · A good scheme for the retired to get a fixed income · Benefit of a terminal bonus of 10% if the account is maintained till maturiy.

1/16/2009

Post Office Monthly Income Scheme (MIS)

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· The depositor may open any number of accounts subject to the condition that the total investment in all the accounts not exceed Rs.3.00 and Rs 6.00 lacs if the account are held by single and joint holders respectively. Features: Depositor can have more than one account in the same Post Office or in any other. Cash , Cheque or DD Or through direct debit instruction, if the instrument has to be purchased from the savings account at the Post Office. Nomination can be made at the time of opening the account or at any time during the tenure of the account but before its closure. Minimum amount of investment is Rs 1,000/- and additional amount in multiples of Rs 1,000/-. Only one deposit is allowed in one account. The total amount that can be invested in this scheme is Rs. 3.00 lacs and Rs. 6.00 lacs if the account is held by single and joint holders respectively. The deposit will be kept for a period of 6 years. The deposit can be withdrawn before the maturity period subject to levy of penal interest. Interest is paid monthly to the depositor after one month from the date of opening. Additional interest is not paid to the depositor if the monthly interest is not claimed on due dates. If the depositor has a savings account in the Post Office the interest amount is directly credited to the account on the due dates. Premature withdrawal is permitted if the deposit has run for more than a year from the date of opening. A percentage of to 5% from the principal is deducted at the time of withdrawal. The 10 % bonus is also not paid on premature withdrawal.

1/16/2009

Post Office Monthly Income Scheme (MIS)

Page 2 of 2

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