Post Office Monthly Income Scheme (MIS)
The Post Office Monthly Income Scheme is perfect for those who are retired or is a senior citizen with the desire to invest in a secure scheme. So we at Nostra Advisors, often suggest this investment to senior citizens or those who have just retired as it ensures a monthly income that too in a smooth manner without any kind of hassles. This scheme also has a high rate of interest (8.40%) which will be auto credited to the individual's savings bank account. Generally the maturity period is after 5 years.
Salient Features:
- No tax deduction at source (TDS).
- No tax rebate is applicable.
- Minimum investment amount is Rs.1500/- or in multiple thereafter.
- Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a joint account.
- Auto credit facility of monthly interest to saving account if accounts are at the same post office.
- Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.
- Non-Resident Indian / HUF cannot open an Account.
- Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian.
- Facility of premature closure of account after 1 year but on or before 3 years @ 2.00% discount.
- Deduction of 1% if account is closed prematurely at any time after three years.
- One will not get any bonus on its maturity. This aspect has come into effect from 01.12.2011.