From interest rate to maturity, everything about the Post Office monthly income program

With attractive interest rates, the Postal Monthly Income Program (POMIS) is one of the most profitable, secure and stable investment tools.

This plan can be the key to financial stability for people looking for a stable, paid income every month. Let’s take a look at how MIS can be a great program to invest in.

The Post Office MIS is a small, government-backed savings initiative that provides participants with a stable interest rate and monthly income. Since such projects are supported by the government, they are often considered safe for the population. However, it remains important to consult a financial advisor to have an investment suggestion adapted to your savings objectives.

Swiss Post GIS system

1. Minimum ₹1,000 and in a multiple thereof. The maximum investment limit is ₹9 lakh in a single account and ₹15 lakh in a joint account. The account will mature in five years.
2. Under this scheme, a depositor is allowed to operate more than one account subject to the ceiling of the maximum amount, which can be invested in a single or joint account.
3. After one year, a person can close the account prematurely, but this must be done before the expiration of a period of three years, subject to deduction of 2% of the deposit. In case of closure of the account after three years of expiration, 1% of the deposit will be deducted.
4. The MIS interest rate is 7.4%.

Who can open an account?

According to the latest information provided on the official website of India Post, here are the requirements to open an MIS account:

1. Only one adult.
2. Joint account (up to 3 adults) (Joint A or Joint B).
3. A guardian on behalf of a minor/insane person.
4. A minor over 10 years old in his name.

Deposit authorized in MIS

1. A person is allowed to open an account with a minimum of ₹1,000 and a multiple of ₹1,000.
2. A maximum of ₹9 lakh can be deposited in a single account, while the limit for a joint account has been set at ₹15 lakh.
3. In the case of a joint account, all co-holders will have an equal share in the investment.
4. Deposits/shares in all MIS accounts opened by an individual should not exceed ₹9 lakh.
5. The limit for accounts opened in the name of a minor as guardian is separate.

Interest rate

The interest on the account will be payable at the end of one month from the date of opening and so on until maturity. If a person does not claim the interest payable each month, such interest will not give rise to any additional interest.

If any excess deposit is made by the depositor, it will be refunded and only the interest on the Post Office Savings Account will be applicable from the date of opening of the account until the date of refund.

People will be allowed to withdraw interest through a car loan on savings accounts opened at the same post office, or ECS.

Maturity

1. The account can be closed on the expiry of five years from the date of opening by submitting the prescribed application form with passbook to the concerned post office.
2. In cases where the account holder dies before maturity, the account may be closed and the amount will be refunded to the nominee/legal heirs. In such cases, interest will be paid until the month preceding that in which the repayment is made.

Premature closure

1. No deposit may be withdrawn before the expiration of one year from the date of deposit.
2. If the account is closed after one year and three years from the date of opening, a deduction equal to 2% of the principal will be removed and the remaining amount will be paid.
3. If the account is closed after three years and before five years from the date of opening, a deduction equal to 1% of the capital will be deducted and the remaining amount will be paid.
4. An MIS account can be closed prematurely by submitting a prescribed application form along with a passbook to the concerned post office.