To encourage people to save money and give them a secure investment alternative, the government has a number of savings programmes. Public Provident Fund, National Savings Certificate, Sukanya Samriddhi Yojana, Senior Citizen Savings Scheme, and Kisan Vikas Patra (KVP) are just a few of the well-known savings programmes made available by the Indian government.
One such government-backed savings programme in India that offers its investors a set monthly income is the National Savings Monthly Income Plan Account. It is provided by the Ministry of Communications Department of Posts and is accessible at all post offices in the nation.
Account for the Post Office Monthly Income Scheme (MIS)
The Post Office has a well-known savings programme called the POMIS Account (Post Office Monthly Income Scheme Account). It is a low-risk savings plan that pays a fixed interest rate and gives investors a consistent source of income.
Features of Post Office Monthly Income Scheme:
- 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.
- Subject to the maximum amount that may be invested in a single, or joint account, a depositor may operate more than one account under this system.
- A guardian may also open an account for a child or someone who is mentally incompetent.
- 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
- A minimum of Rs. 1000 and then multiples of Rs. 1000 can be used to start an account.
- A single account can only have a deposit of up to Rs. 9 lakh, while a joint account can have up to Rs. 15 lakh.
- All joint holders in a joint account are entitled to an equal part of the investment.
- A person's total deposits/shares in all MIS accounts they have opened cannot exceed Rs. 9 lakh.
- The cap for accounts formed as a guardian on behalf of a minor shall be distinct.
Post Office Monthly Income Scheme Account: Interest
- From the opening date until maturity, interest must be paid at the end of each month.
- The interest due each month will not accrue any further interest if it is not collected by the account holder.
- The interest rate from April 1, 2023, until June 30, 2023, is 7.4% per year, payable monthly.
