Post Office MIS Scheme
We all are aware of post office as one of main channel to transfer letter from one place to another. Post office do serve as a bank also and there are various schemes which are beneficial for an individual in terms of Tax saving and as another form of Investment. In this article we would like to bring to your notice about Post office Monthly Income Scheme generally termed as MIS.
Monthly Income scheme (MIS) is one of the most common schemes that an individual will love to take it due to its benefits. We would be summarizing the benefits and drawbacks of this scheme, so that you will come to know about scheme.
Pros of Post Office MIS Scheme
- Monthly Income Scheme is worth for the one who require return each month.
- MIS account can be opened in any of the post office branch with a minimum amount of 1000 rupee and the maximum amount that you can invest is 4.5 Lakh if opening as an individual or 9 Lakh if the account is opened as Joint Account.
- Interest rate is 8.2 percent per annum from 1st December 2011 and is paid monthly. So suppose if you invest 1 lakh rupees in MIS than you will get 684 rupees per month.
- If you do not wish to take this amount monthly then it can directly be credited to post office recurring deposit account or savings account which also has around 8 percent annual return.
- MIS has a locking period of 5 years after which you will get the principal amount back. Principal amount is a amount that you have invested initialy. But you can premature it also after completion of one year but a penalty is levied and it is not advisable to premature MIS.
- MIS is best suited for retired persons and also for the one who look for a fixed income on a monthly basis.
Cons of Post Office MIS Scheme
- MIS is not yet made online by post office and is still a manual process.
- Interest rate is fixed and if you do not open a savings account and you do not withdraw the monthly interest than you will lose interest on interest.
- Penalty for a premature MIS is high and it turns into a loss if you have to premature it.
- MIS was having a bonus of 5% on maturity till 1st December 2011 but now it is not included in the accounts that are opened after this date.