This Post Office Savings Scheme Offers Up To 7.3% Interest Rate

India Post, the postal system of the country, offers a host of saving schemes with different rates of interest. India Post has a network of more than 1.55 lakh post offices across the country and offers a variety of banking and remittance services, other than mailing services. It offers nine different types of saving schemes ranging from Sukanya Samriddhi, which is for girl child, to Senior Citizen Savings Scheme, and pays an interest rate of up to 8.3 per cent on these savings schemes, according to India Post's website - indiapost.gov.in.

Here's everything you need to know about Post Office Monthly Income Scheme Account (MIS):

Features

1. Post office Monthly Income Scheme account can be opened by an individual by cash or cheque. In case of cheque, the date of realisation of cheque in government account shall be the date of opening of account.

2. Customers also get nomination facility, which is available at the time of opening and also after opening of the account.

3. Post office also offers the option of transfer of account from one post office to another and opening of multiple number of accounts in any post office. However, there is a cap on the maximum investment limit by adding balance in all accounts.

4. The account can be opened in the name of a minor and a minor of 10 years and above can open and operate the account. However, when a minor attains majority, he/she has to apply for conversion of the account in his/her name. 

5. Joint account can be opened by two or three adults but it is mandatory for all joint account holders to have an equal share in each joint account. However, single accounts can also be converted into joint accounts and vice-versa.

Interest Rates and Amount

Post Office Monthly Income Scheme Account offers an interest rate of 7.3 per cent per annum which is payable monthly. Customers needs to deposit the amount in multiples of Rs. 1,500. However, the maximum investment limit is Rs. 4.5 lakh in single account and Rs. 9 lakh in a joint account. An individual can invest a maximum amount of Rs. 4.5 lakh in MIS, including his/her share in joint accounts.

Premature Withdrawal

The maturity period of the savings scheme is five years. One can prematurely withdraw the amount after one year but before three years. However, the one has to bear a deduction of two per cent of the deposit in such of premature withdrawal. Withdrawal after three years attracts a deduction of one per cent of the deposit.