India Post a host of savings, investment services. Currently, it offers interest at the rate of 7.6 per cent on investment in the Post Office Monthly Income Scheme (MIS) Account at designated post office branches. Note that the interest rates applicable to small savings schemes such as Post Office Monthly Income Scheme Account are reviewed by the Ministry of Finance on a quarterly basis.
For the quarter ending March 31, 2020, the finance ministry retained the interest rates at existing levels. The Post Office Monthly Income Scheme Account is part of the nine government-run small savings schemes, including the 15-Year Public Provident Fund (PPF) and the Senior Citizen Savings Scheme (SCSS).
Here are key things to know about the Post Office Monthly Income Scheme Account:
1. Interest Rate: For the fourth quarter of the current financial year, investment in the Post Office Monthly Income Scheme Account will fetch an interest rate of 7.6 per cent. The interest can be drawn through auto credit into a savings account in the same post office through a post-dated cheque (PDC) or Electronic Clearing Service (ECS).
2. Minimum investment account opening: For opening an account under this scheme, one needs to invest a minimum of Rs 1,000, according to the India Post website - indiapost.gov.in. Any amount in the multiples of Rs 1,000 can be used to set up the account.
3. Maximum investment limit: For a single account, a maximum limit of Rs 4.5 lakh is applicable for investment. For a joint accout, the upper limit is Rs 9 lakh. An individual can invest a maximum of Rs 4.5 lakh in the scheme, which includes the share of that person in any joint account.
4. Mode of operation: A Monthly Income Scheme account can be operated on a single or joint basis.
