Most people in India rely on the Post Office’s financial schemes to meet their monetary requirements. The monthly income scheme or MIS is one such investment scheme that gives a guaranteed return. However, this return is offered as a fixed income every month. Moreover, the Post Office MIS interest rate 2022 is set at 6.60% p.a.
Most investors consider this Post Office fixed deposit scheme the safest and smartest investment option. This blog elaborates on the features, benefits and steps to open an account under MIS.
Features of Post Office MIS
POMIS is a great fixed deposit investment option that comes with the following features:
- POMIS is a low-risk monthly investment option. It guarantees a monthly payment in the form of a return after a maturity period.
- Investors receive money from Post Office MIS interest rate 2022 as a monthly payment.
- This scheme has a lock-in maturity time of 5-years. Moreover, it gives the option of reinvestment to the investors.
- Under this scheme, people can choose either a personal account or a joint account. For joint accounts, a maximum of 3 people above the age of 10 years can contribute equally to POMIS.
- One individual can open multiple accounts under POMIS. However, the cumulative balance for a person across all the accounts must not exceed ₹ 4.5 lakhs. In addition, for a joint account, this cap is set at ₹ 9 lakhs.
- For this Post Office fixed deposit scheme, an individual needs to make a minimum investment of ₹ 1,500. On the other hand, the maximum investment limit is ₹ 4.5 lakhs.
- A minor above the age of 10 years can open a POMIS account to make a maximum investment of ₹ 3 lakhs. However, after reaching 18 years of age, they can convert the same account into an adult account.
- For premature withdrawal, a penalty is charged from the account holders. For example, a 2% penalty is levied after 1 year of account opening and before 3 years of account maturity. Similarly, a 1% penalty is taken for withdrawal after 3 years of opening an MIS account.
- After maturity, investors get the option to either withdraw or reinvest the amount in MIS. With the reinvestment option, they get the Post Office MIS interest rate 2022 for the next two years.
- An account holder can easily transfer this Post Office fixed deposit account from one branch to another.
- Zero TDS charge is deducted from the amount of Post Office MIS interest rate 2022.
Post Office MIS interest rate 2022
The Post Office MIS interest rate 2022 is paid on a yearly basis. Prior to the financial year 2016, the POMIS interest was 8.40%. However, it came down to 6.60% after April 1, 2016. In addition, the income from this scheme is also taxable by the government of India.
Steps to open MIS Post Office Fixed Deposit Account
To open an account in this scheme, you need to visit the nearest Post Office on a working day to complete all the formalities. You can get the account opening form either from the Post Office or download it from the post office’s official website.
After filling out the form, you need to submit it to the post office along with the photocopy of your passport-size photo, address proof and ID proof. After the document verification process, you need to make a payment through a cheque or cash.
Conclusion
The POMIS is an excellent investment option for every citizen of India that guarantees a monthly return after maturity. In addition, you don’t need to pay any TDS for this investment. However, you can apply for it only through an offline method. Therefore, if you are interested in opening an account in the government-backed scheme, you must visit the nearest post office branch to complete the simple application procedure and start your investment.
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