Monthly Income Scheme: From deposit limit to taxation, 10 important details to know about this account
National Savings Monthly Income Scheme or MIS is a deposit scheme is a savings plan offering interest rate of 6.6 per cent, annually. The current rate is being offered on MIS accounts at the Indian post offices
National Savings Monthly Income Scheme or MIS is a deposit scheme is a savings plan offering interest rate of 6.6 per cent, annually. The current rate is being offered on MIS accounts at the Indian post offices. The rate is fixed by the government on quarterly basis and has remained unchanged since 1 April 2020.
The account can be opened in multiples of Rs 1000 and maximum investment limit is Rs 4.5 lakh in single account and Rs 9 lakh in joint account.
Here are top 10 things to know about the National Savings Monthly Income Scheme or MIS:
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1) An individual can invest maximum Rs 4.5 lakh in MIS including his share in joint accounts.
2) A single adult can open an account and a joint account with up to 3 adults can open. A guardian on behalf of minor or a person of unsound mind can be opened. A minor above 10 years in his own name can also open this account.
3) Deposit: Account can be opened with minimum of Rs 1000 and in multiple of Rs 1000. A maximum of Rs 4.50 lakh can be deposited in a single account and 9 lakh in joint account. In a joint account, all the joint holders shall have equal share in investment.
4) Deposits/shares in all MIS accounts opened by an individual shall not exceed Rs. 4.50 lakh.
5) Limit for account opened on behalf of a minor as guardian shall be separate.
6) Interest: Interest shall be payable on completion of a month from the date of opening and so on till maturity. If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.
7) In case any excess is deposited by the depositor, the excess deposit will be refunded back and only PO Savings Account interest will be applicable from the date of opening of account to the date of refund.
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8) Interest can be drawn through auto credit into savings account standing at same post office, or ECS. In case of MIS account at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post Offices.
9) Interest is taxable in the hand of depositor.
10) Account may be closed on expiry of 5 years from the date of opening by submitting prescribed application form with pass book at concerned Post Office. In case the account holder dies before the maturity, the account may be closed and amount will be refunded to nominee/legal heirs. Interest will be paid up to the preceding month, in which refund is made.