Monthly Income Scheme (MIS)

VISHAL BANSAL 
on 03 December 2018


“The rich invest in time, the poor invest in money.”

 Introduction-

Monthly Income Scheme is best for retired persons, earning a regular income from their investments is one of their top priorities. This scheme helps to meet out their monthly household expenses, even for those continuing to work part-time or occasionally. It is a fixed income scheme, the money you invested is not subject to market risks and is quite safe.

"Icing on this cake is that monthly interest income can be further invested in Recurring Deposits to give you double profit." 

Eligibility-

  • The investment in this scheme is available at any post offices in India.
  • The investment can be made in the individual name or in the joint name.
  • The investment in this scheme can be made by an Indian resident.
  • An NRI’s is not eligible to invest under this scheme.
  • The account can be transferred from one post office to another post office.

Minimum or Maximum amount can be deposited-

  • The investment can start with a minimum amount of Rs. 1,500 & with a maximum of Rs. 4,50,000 in your individual name.
  • Maximum investment limit is Rs. 4, 50,000/- in a single account and Rs. 9, 00,000/- in a joint account.
  • Multiples of Rs 1,500, subject to the above limit.

Opening of Account-

  • You can open more than one account in your name. But the total deposit amount cannot exceed Rs. 4.5 lakhs in all of them together.
  • Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
  • Account can be opened in the single name or in the joint name.

Mode of Payment-

  • The amount can be deposited through cheque, demand draft or online transfer.

Rate of Interest-

  • The Interest rate is revised from 3rd quarter @ 7.7% per annum (earlier in 1st or 2nd quarter of 2018 it was 7.3%).
  • Interest is received on monthly basis.

Documents required-

  • Residential proof of the applicant
  • Identity proof of the applicant
  • Photograph of the applicant

Partial withdrawal- 

  • Premature withdrawal can be made after one year or before 3 years at a discount of 2% of deposit amount and after 3 years at a discount of 1% of deposit amount.

Maturity-

  • Principal amount is payable on maturity i.e. after completion of 5 years. It can be further invested for next 5 years.

Keep in mind-

  • Investment under this scheme is not eligible for tax deduction limit.
  • Interest received thereon is fully taxable.
  • This is guaranteed investment schemes.

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