MIS post office
Facts about MIS that we should be aware of
We all have the necessity to have a monthly income. There are various ways of having such income. The most certain and safest method of having such an income is through MIS did at Indian Post Office. There are various features which we must be aware of while we intend to have such a way of income.
Eligibility in MIS post office:
If you have attained the age of 10 then you can open an MIS on your own. The account can be operated singly or jointly as desired by you. If you are a minor then an individual can be your guardian if you wish to have an MIS. HUF and NRI’s are not allowed to have such account. There are some documents required for opening an MIS. You need to provide address proof, Identity proof and two copies of the recent photo.
Limit of opening:
This is a one-time investment plan. The minimum amount that you can invest is Rs. 1,500 and the maximum Rs. 4, 50,000. If you invest jointly than the maximum range is Rs. 9, 00,000. You can have a number of accounts but the monetary limit should not be crossed. If you deposit excess then the Postal department will make you aware of it and you have to withdraw the excess amount.
The interest rate in MIS post office: The current interest rate is 7.8%. The interest rate generally changes quarterly. It is for certain that your MIS will be earning the interest rate when it was generated.
Payment of interest: The interest that you earn will be deposited to the designated bank account on a monthly basis.
Tenure: The tenure of deposit was 6 years now it has been reduced to 5 years.
What happens after maturity:
After maturity, it is good that you withdraw the entire money and redeposit again. If you do not withdraw the amount will be earning simple interest as per post office savings account. If even after two years you do not withdraw then the money will be kept idle.
Nomination facility: Nomination can be done while you open an MIS or during the tenure.
TDS: It is a relief that no TDS is deducted at source. The income that you make from the interest is taxable. So you need to pay tax if applicable.
Ways of receiving the interest in MIS post office:
There are three ways of receiving the interest. The interest can be directly credited to the post office savings account that you have. You can withdraw the money on a monthly basis is you wish. You can if you wish to have the interest payment through post dated cheques. The validity of the cheques is of three months.
Premature withdrawal: You can withdraw the money prematurely only after one year of opening the MIS. There are some deductions made if premature withdrawal is made. If you withdraw within three years than 2% of the invested money will be deducted. 1% will be deducted if you withdraw between three years and five years.
Transfer of funds: You can if you wish, transfer the MIS from one post office to another across India