Post Office Small savings schemes offer you great return and are ideal for those who believe in guaranteed return schemes. One such Post Office Small savings scheme is the Monthly Income Scheme. An account can be opened in multiples of Rs 1000. The maximum investment limit is Rs 4.5 lakh in single account and Rs 9 lakh in joint account. An individual can invest maximum Rs 4.5 lakh in MIS (including his share in joint accounts). For calculation of share of an individual in joint account, each joint holder have equal share in each joint account.
If you are a single account holder, you will earn Rs 29,700 annual interest for investing Rs 4.5 lakh in Post Office MIS Scheme. Meanwhile, for the joint account holders, the earnings will be Rs 59,400 for investing Rs 9 lakh in Post Office MIS Scheme. Now, if you make a monthly calculation, based on the annual amount (divided by 12 months), it means that you would get Rs 4,950 per month monthly income.
Interest shall be payable on completion of a month from the date of opening and so on till maturity. But if the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest. Any excess deposit made 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.
Post Office Monthly Income Scheme can be opened by a single adult; a Joint Account (up to 3 adults); a guardian on behalf of a minor/ person of unsound mind; and a minor above 10 years in his own name.
Interest can be drawn through auto credit into a savings account standing at the same post office, or ECS. In the case of an MIS account at CBS Post offices, monthly interest can be credited into a savings account standing at any CBS Post Office. Interest is taxable in the hand of depositors.