Want a steady flow of income? Is your risk appetite on the lower side? If Yes is the answer to these questions, then you should look to apply for a post office product MIS, which stands for Monthly Income Scheme and goes well with your low-risk tolerance.
All those requiring a stable flow of income are flocking to post offices located in their respective area to open an MIS account. While you should get a hang of MIS interest rate, a keen eye on the eligibility and documents should also be there. So, if you are in for a comprehensive information on the MIS, the article is for you.
What is MIS Interest Rate at the Moment?
MIS interest rate stands at 7.30% per annum, as of now. The interest earned is payable on a monthly basis. The accrual of interest would be from the investment date and not from the start of the month. As the rates are fixed periodically, there can be changes from time to time.
How to Start Investing in MIS?
You can visit the nearest India Post branch or go online to invest in the scheme. The minimum amount by which you can open an MIS is ₹1,500. On the other hand, the maximum investment amount is limited to ₹4,50,000.
The following points illustrate the features of MIS, take a look.
- An individual can open the MIS account by either cash or cheque
- The cheque realization date will be taken as the account opening date in case of payment via cheque
- There’s no restriction as far as the number of accounts to be opened. However, the addition of balances in all the accounts must stay within the maximum investment limit permissible.
- The account is transferable from one post office branch to another
- You can go for the nomination while opening the account or after doing the same
- Even on the name of a minor, an account can be opened. Minors having aged 10 years and above are eligible to open the account and operate it as well.
- However, after attaining the majority, they must apply for conversion of account on their name
- Two or more adults can combine together to form a joint account, with all account holders having an equal share.
- The maturity period of the scheme is 5 years as opposed to 6 years earlier
How to Open MIS Account?
Visit the website of India Post, go to monthly scheme page and download the MIS application form, take a print out of the form, enter the relevant details sought in it and submit the same with relevant documents to the concerned official. The details when get verified successfully would lead to the opening of an account.
You need to submit the following documents while opening the account.
Identity Proof – PAN Card/Voter ID/Passport/Aadhaar Card/Driving License
Residence Proof – Voter ID/Passport/Aadhaar Card/Driving License/Utility Bill
Passport Size Photographs
Is Monthly Income Scheme in SBI and Other Banks Available?
As of now, there’s no monthly scheme in SBI and other banks such as HDFC Bank, ICICI Bank, Axis Bank, etc.