Post Office Offers Monthly Income Scheme Account: 10 Things To Know

India Post, which has a network of over 1.5 lakh post offices across the country, provides a range of financial and retail services, other than its mailing operations. The Department of Posts offers several savings schemes with different interest rates. Interest rates on post office saving schemes move in line with the government's interest rates on small savings schemes, which are revised on a quarterly basis. One such savings scheme offered by India Post is monthly income scheme account (MIS), according to its official website, indiapost.gov.in.

Here are 10 things to know about Post office monthly income scheme (MIS) account:

1. Account opening: Post office monthly income scheme account can be opened by individuals via cheque or cash. In case of cheque, the date of realisation of cheque in government account shall be the date of opening of account.

2. Interest Rates: The post office MIS account offers an interest rate of 7.7 per cent per annum, which is payable monthly. 

3. Minimum amount: The minimum amount required to set up a monthly income account is Rs. 1,500. 

4. Maximum amount: The maximum investment limit is Rs. 4.5 lakh in a single account and Rs. 9 lakh in a joint account, according to India Post's official website. 

5. Maturity period: The maturity period of Post Office MIS account is 5 years.

6. Eligibility: Account can be opened in the name of minor and a minor of 10 years and above age can also open and operate the account.  

7. Account operations: Joint account can be opened by two or three adults. All joint account holders should have equal share in each joint account. Single account can also be converted into a joint account and vice-versa, noted India Post.

8. Transferable & number of accounts: MIS account can be transferred from one post office to another. One can also open any number of MIS accounts in any post office subject to maximum investment limit by adding balance in all accounts.

9. Premature withdrawal: The account can be prematurely encashed after one year but before three years at the discount of 2 per cent of the deposit and after three years at the discount of 1 per cent of the deposit. Discount means deduction from the deposit.

10. Other facilities: Nomination facility is available at the time of opening and also after opening of MIS account.