The National Savings Monthly Income Scheme (MIS) is a deposit scheme that offers an annual interest rate of 6.6%. The current rate is available on MIS accounts at Indian post offices.
The National Savings Monthly Income Scheme (MIS) is a deposit scheme that offers an annual interest rate of 6.6%. The current rate is available on MIS accounts at Indian post offices. The government sets the rate on a quarterly basis, and it has remained unchanged since 1 April 2020.
The account can be opened in multiples of Rs 1000, and the maximum investment limit in a single account is Rs 4.5 lakh and Rs 9 lakh in a joint account.
Here are the top ten facts about the National Savings Monthly Income Scheme (MIS):
1) A person can invest up to Rs 4.5 lakh in MIS, including his share in joint accounts.
2) A single adult can open an account, as can a joint account with up to three adults. A guardian can open the account on behalf of a minor or a person of unsound mind. A minor over the age of ten can also open this account in his or her own name.
3) Deposit: A minimum of Rs 1000 and multiples of Rs 1000 are required to open an account. A single account can hold up to Rs 4.50 lakh and a joint account up to Rs 9 lakh. In a joint account, all joint holders must have an equal share of the investment.
4) An individual’s deposits/shares in all MIS accounts opened shall not exceed Rs. 4.50 lakh.
5) The account limit for a minor opened as guardian shall be separate.
6) Interest: Interest will be paid at the end of each month beginning with the date of opening and continuing until maturity. If the account holder does not claim the monthly interest, the interest will not earn any additional interest.
7) If the depositor deposits an excess, the excess deposit will be refunded, and only PO Savings Account interest will be applicable from the date of account opening to the date of refund.
8) Interest can be withdrawn via auto credit into a savings account at the same post office or ECS. Monthly interest on MIS accounts at CBS Post Offices can be credited to savings accounts at any CBS Post Office.
9) Interest is taxable in the depositor’s hands.
10) Accounts may be closed after 5 years from the date of opening by submitting a prescribed application form along with the pass book to the relevant Post Office. If the account holder dies before the maturity date, the account may be closed and the amount refunded to the nominee/legal heirs. Interest will be paid up to the preceding month of the refund.