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Post Office Monthly Income Scheme Account: Interest Rate, Maturity Period, Other Details

The maturity period of Post Office MIS account is 5 years.
The maturity period of Post Office MIS account is 5 years.

India Post, the postal system of the country offers several saving schemes with different rates of interest besides postal services. One such savings scheme offered by India Post is monthly income scheme (MIS). The post office MIS account offers an interest rate of 7.3 per cent per annum, which is payable monthly. The minimum amount required to set up a monthly income account is Rs. 1,500. The maximum investment limit is Rs. 4.5 lakh in a single account and Rs. 9 lakh in a joint account, according to India Post's official website, indiapost.gov.in. Nomination facility is available at the time of opening and also after opening of MIS account.

Here are key things to know about Post office monthly income scheme (MIS) account:

1. Account opening: Post office monthly income scheme accounts can be opened by individuals via cheque or cash. In case of cheque, the date of realisation of cheque in government account should be the date of opening of account.

2. Maturity period: The maturity period of Post Office MIS account is 5 years.

3. Tranferable & number of accounts: MIS account can be transferred from one post office to another. One can also open any number of MIS accounts in any post office subject to maximum investment limit by adding balance in all accounts.

4. Account operations: Account can be opened in the name of minor and a minor of 10 years and above age can also open and operate the account. Joint account can be opened by two or three adults. All joint account holders have equal share in each joint account. Single monthly income scheme (MIS) account can also be converted into joint account and vice versa.

5. Premature withdrawal: The account can be prematurely en-cashed after one year but before three years at the discount of 2 per cent of the deposit and after three years at the discount of 1 per cent of the deposit. Discount means deduction from the deposit.