Do You Need a Post Office Monthly Income Account? Know the Requirements & Features

 Do You Need a Post Office Monthly Income Account? Know the Requirements & Features

Accounts may be started with a minimum of Rs. 1000 using the Post Office monthly income plan.

A modest savings program sponsored by the government that provides depositors with a set interest rate and a monthly income is the Post Office National Savings (Monthly Income Account) Scheme (MIS). It is one of the solutions available to investors seeking a secure and dependable means of generating a monthly income.

India's national savings programs are seen as secure since the government supports them. However, it's crucial to get the advice of a financial professional for a good investment recommendation based on your savings objectives.

National Savings (Monthly Income Account) Program of the Post Office

Minimum of Rs. 1000 in multiples of that. Maximum limits for single accounts are Rs. 9 lakhs and joint accounts are Rs. 15 lakhs.

Account expires after five years.

Subject to the maximum amount that may be invested in a single, or joint account, a depositor may run more than one account under this system.

After one year but before the end of three years, the account may be prematurely cancelled with a 2% penalty. If the account is closed before the three-year period has passed, 1% of the initial deposit will be taken out.

Interest rate for the Post Office Monthly Income Scheme: 7.4% (from October 1 to December 31, 2023).

According to the most recent information on India Post's official website, the program's key characteristics include;

Who is able to open?

A single adult is (i)

(ii) Joint Account (Joint A or Joint B) (up to 3 people).

(iii) a guardian acting on behalf of a juvenile or mentally ill person

(iv) a juvenile above the age of 10 who is using his own name.

(b)Deposit:-

(i) A minimum of Rs. 1000 and multiples of Rs. 1000 are required to create an account.

(ii) The maximum deposit per account is Rs. 9 lakh, and the maximum deposit per joint account is Rs. 15 lakh.

(iii) Each joint account holder will have an equal part of the investment.

(iv) A single person may not have more than Rs. 9 lakh in deposits or shares across all of their MIS accounts.

(iv) There will be a different limit for accounts created as a guardian on behalf of a child.

(c)Interest:-

(i) Interest is due at the end of each month starting on the opening date and continuing until the loan is paid off.

(ii) The interest due each month will not accrue any further interest if it is not collected by the account holder.

(iii) If the depositor makes an excess deposit, the excess deposit will be returned back, and only PO Savings Account interest will apply from the day the account was opened to the date the excess deposit was reimbursed.

(iv) Interest may be taken out of savings accounts that are open at the same post office or ECS through auto credit. Monthly interest may be credited to savings accounts held at any CBS Post Office in the case of MIS accounts at those locations.