Post Office Scheme Gives you 6.6% Yearly Return: How to Invest, Eligibility, Key Details

Post Office National Savings Monthly Income Account: The National Savings Monthly Income (MIS) scheme offered by the India Post is one of the most  popular risk-free savings schemes in the country. The policy caters to those who want to put their money in a government-run scheme, which will guarantee fixed returns. It can also act as a tax saving scheme for middle and low income group investors, who can claim tax exemption under the Income Tax Act by investing in this scheme. The Post Office Monthly Income Scheme guarantees fixed returns to investors at the rate of which the money was invested initially.

In a tweet dated December 13 last year, the India Post urged citizens to invest in its National Savings Monthly Income account. “Invest in National Savings Monthly Income Account (MIS) and get up to 6.6% annual interest every month. To learn more, click: http://cutt.ly/MxLVlZA,” it wrote on the Twitter post.

Here are the details about the Post Office MIS that offers 6.6 per cent annual return payable monthly:

– Interested investors who want to open an MIS account must note that the minimum amount for opening of the account is Rs 1,000. The deposits thereafter has to be in multiples of Rs 1,000, as per the guidelines of the Post Office. This rule has come into effect from April 1 2020.

– The maximum investment limit is Rs 4.5 lakh for a single account and Rs 9 lakh for joint accounts. An individual can invest maximum INR 4.5 lakh in MIS (including his share in joint accounts). For calculation of share of an individual in joint account, each joint holder have equal share in each joint account.

– Investors who want to open the Post Office National Savings Monthly Income Account must know if he or she is eligible to do this. According to the post office, the account can be opened by a single adult, while a joint account can be held by up to three adults (Joint A or Joint B). While a guardian on behalf of minor/ person of unsound mind can open the account, a minor above 10 years in his own name can also do it.

What are the Interest Details for the MIS Account?

– Interest shall be payable on completion of a month from the date of opening and so on till maturity.

– If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.

– In case any excess deposit made by the depositor, the excess deposit will be refunded back and only PO Savings Account interest will be applicable from the date of opening of account to the date of refund.

– Interest can be drawn through auto credit into savings account standing at same post office, or ECS. In case of MIS account at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post Offices.

– Interest is taxable in the hand of depositor.

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