Post Office Monthly Income Scheme

Post Office Monthly Income Scheme (MIS)

Duration: P. O. Monthly Income Scheme has an maturity period of 6 years.

Mode of Investment: Single, Joint (Two or more), Minor with parent/guardian and Minor who has attained age of 10

Investments:Min Amount Rs. 1,000/- and additional investment in multiples of 1,000/- Max Amount Rs. 3,00,000/- (if Single) or Rs. 6,00,000/- (if held Jointly).

Returns: P. O. Monthly Income Scheme provides an interest rate of 8.0% per annum which is paid monthly

Advantages:

·         Depositor can have more than one account in the same post office or in any other.

·         Facility is there at the time of opening the account or anytime during the tenure of the account.

·         Is permitted if deposit is more than one year old. A deduction of 5% is levied from the principal amount if withdrawn prematurely; the 10% bonus is also denied.

·         A bonus of 10% is paid at the time of maturity.

·         A Passbook is issued at the time of opening the account. If the passbook is lost, or it is is mutilated, a duplicate is issued on payment of a charge.

·         Tax benefits can be availed under section 80L. No Tax benefits are provided under section 88.

·         A good scheme for the retired to get a fixed income

·         Benefit of a terminal bonus of 10% if the account is maintained till maturity

·         The depositor may open any number of accounts subject to the condition that the total investment in all the accounts not exceed Rs 3.00 and Rs 6.00 lacs if the account are held by single and joint holders respectively.