Post Office
Monthly Income Scheme
The post-office monthly income scheme (MIS)
provides for monthly payment of interest income to investors. It is meant for
investors who want to invest a sum amount initially and earn interest on a
monthly basis for their livelihood. The MIS is not suitable for an
increase in your investment. It is meant to provide a source of regular income
on a long term basis. The scheme is, therefore, more beneficial for retired
persons.
Features
Only one deposit is available in an account. Only individuals can open the account; either single or joint.( two or three). Interest rounded off to nearest rupee i.e, 50 paise and above will be rounded off to next rupee. The minimum investment in a Post-Office MIS is Rs 1,500 for both single and joint accounts. The maximum investment for a single account is Rs 4.5 lakh and Rs 9 lakh for a joint account. The duration of MIS is six years.
Only one deposit is available in an account. Only individuals can open the account; either single or joint.( two or three). Interest rounded off to nearest rupee i.e, 50 paise and above will be rounded off to next rupee. The minimum investment in a Post-Office MIS is Rs 1,500 for both single and joint accounts. The maximum investment for a single account is Rs 4.5 lakh and Rs 9 lakh for a joint account. The duration of MIS is six years.
Returns
The post-office MIS gives a return of 8% interest on maturity. The minimum investment in a Post-Office MIS is Rs 1,500 for both single and joint accounts
The post-office MIS gives a return of 8% interest on maturity. The minimum investment in a Post-Office MIS is Rs 1,500 for both single and joint accounts
|
Deposit Rs
|
Monthly Interest
|
Amount returned on maturity
|
|
5,000
10,000 50,000 1,00,000 2,00,000 3,00,000 6,00,000 |
33
66 333 667 1333 2000 4000 |
5,000
10,000 50,000 1,00,000 2,00,000 3,00,000 6,00,000 |
Advantages
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|
Premature closure of the
account is permitted any time after the expiry of a period of one year of
opening the account. Deduction of an amount equal to 5 per cent of the deposit
is to be made when the account is prematurely closed. Investors can withdraw
money before three years, but a discount of 5%. Closing of account after three
years will not have any deductions. Post maturity Interest at the rate
applicable from time to time (at present 3.5%). Monthly interest can be
automatically credited to savings account provided both the accounts standing
at the same post office. Deposit in Monthly Income Scheme and invest
interest in Recurring Deposit to get 10.5% (approx) interest. The interest
income accruing from a post-office MIS is exempt from tax under Section 80L of
the Income Tax Act, 1961. Moreover, no TDS is deductible on the interest
income. The balance is exempt from Wealth Tax.
How to Open
You can buy a post office MIS at any post-office inIndia
You can buy a post office MIS at any post-office in
Senior Citizen Scheme
What is Senior
Citizen Scheme
A new savings scheme called ‘Senior Citizens Savings Scheme’ has been notified with effect from August 2, 2004. The Scheme is for the benefit of senior citizens and maturity period of the deposit will be five years, extendable by another three years. Initially the scheme will be available through designated post offices through out the country.
A new savings scheme called ‘Senior Citizens Savings Scheme’ has been notified with effect from August 2, 2004. The Scheme is for the benefit of senior citizens and maturity period of the deposit will be five years, extendable by another three years. Initially the scheme will be available through designated post offices through out the country.
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Features
The minimum investment is 1000Rs and in multiples of Rs.1000 subject to a maximum of Rs.15 lakh. Citizens of 60 years of age and above are eligible to invest. Single or joint account (with spouse only) can be opened. Citizens who have retired under a voluntary or a special voluntary retirement scheme and have attained the age of 55 years are also eligible, subject to specified conditions.
The minimum investment is 1000Rs and in multiples of Rs.1000 subject to a maximum of Rs.15 lakh. Citizens of 60 years of age and above are eligible to invest. Single or joint account (with spouse only) can be opened. Citizens who have retired under a voluntary or a special voluntary retirement scheme and have attained the age of 55 years are also eligible, subject to specified conditions.
The deposit will carry an
interest of 9% per annum (taxable). The maturity period of the deposit will be
five years, extendable by another three years. Premature withdrawal after
a period of one year will be allowed, subject to some deductions.
The investments in the
scheme will be non-tradable and non-transferable. However, nomination facility
will be available. Non-Resident Indians and
Hindu Undivided Families are not eligible to invest in the scheme.
Returns
The deposit will carry an interest of 9% per annum (taxable).
The deposit will carry an interest of 9% per annum (taxable).
Advantages
This Scheme is most beneficial to Senior citizens and provides a high rate of interest as compared to bank interest of 4.5- 4.75%. Although the interest on the deposit is taxable, the deposits themselves are tax free. As the post office is a department of the government ofIndia
This Scheme is most beneficial to Senior citizens and provides a high rate of interest as compared to bank interest of 4.5- 4.75%. Although the interest on the deposit is taxable, the deposits themselves are tax free. As the post office is a department of the government of
How to Start
Post office Senior Citizens account
A Senior Citizen Account can be opened through any designated post office through out the country. The account can be opened by any individual 60 years of age and above either individually, or jointly (with spouse only).
A Senior Citizen Account can be opened through any designated post office through out the country. The account can be opened by any individual 60 years of age and above either individually, or jointly (with spouse only).
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