Post Office MIS

Salient Features

• Interest rate of 8.50% per annum payable monthly.
• 5% bonus also payable on maturity (for accounts opened before 1st December 2011), for accounts opened after 1st December 2011 no bonus payable on maturity.
• Maturity period is 5 years.
• Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a joint account.
• Premature encashment facility after one year.
• No TDS.
• Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.
• A minor having attained 10 years of age can open an account in his/her own name directly.
• Non-Resident Indian / HUF cannot open an Account. Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian.
• A separate account is opened for each deposit.
• Any number of accounts can be opened subject to the maximum prescribed limit.
• Facility of automatic credit of monthly interest to saving account if accounts are at the same post office.
• Facility of premature closure of account after 1 year to 3 years @ 2.00% discount.
• Deduction of 1% if account is closed prematurely at any time after three years.
• Facility of reinvestment on maturity of an account.
• Interest not withdrawn does not carry any interest.
• Maturity proceeds not drawn are eligible to earn savings account interest rate for a maximum period of two years.
• Account is transferable to any Post Office in India, free of cost.
• Nomination facility is available.
• Rebate under section 80 C is not admissible.
• Most suitable scheme for senior citizens and for those who need regular monthly income.
• Deposits are exempt from Wealth Tax.