At present, various savings schemes are run by the post office. One of these is a monthly income scheme (MIS). This scheme remains the first choice for those who want to invest once and earn every month. A maximum of Rs 9 lakh can be deposited in the account opened under the post office monthly income scheme and a maximum of Rs 15 lakh in the joint account. In this scheme, interest is given to you every month on the amount of investor deposits. That is, you will be given interest amount from opening an account to maturity. Currently, the interest rate of this scheme is 7.4 percent.

How many years can you deposit?

Post office MIS is deposited for 5 years at a time, that is, you can get your income by taking interest for 5 consecutive years. The amount deposited after maturity is returned to you.

Clearance rules before maturity

If you need money before five years and you want to withdraw it, or continue the monthly earning plan for more than 5 years, there are different rules for this. If you want to withdraw money before the completion of the maturity period after investing in this scheme, then this facility is not available for 1 year. After 1 year you get the facility to withdraw money from the account, but some money is deducted from your deposit as a fine.

Characteristics of the scheme

• In this scheme, your money remains safe till maturity as it is a government -backed scheme. The lock-in period for post office MIS is 5 years. When the plan matures, you can withdraw the invested amount or re -invest it. The biggest thing is that you can also invest this amount in a multiplier of 1000 according to your capacity. You earn income as interest every month. Returns are higher than other fixed income investments such as FDs.
• The most important thing is that your investment is not covered under Section 80C. TDS is also not applicable. You can open more than one account by your name. But the total deposit cannot be more than Rs 9 lakh. You can open a joint account with 2 or 3 people. In such a situation, a total amount of up to Rs 15 lakh can be invested in this account.

Who can open an account?

Only one Indian resident can open a POMIS account. NRIs cannot avail this scheme. Any adult can open POMIS account. You can open an account on behalf of a minor aged 10 years or above. They can avail funds when they are 18 years old. The minor has to apply to change the account in his name after becoming an adult.

How to open an account

• Pomis account is very easy to open. First of all you have to bring POMIS application form from the post office. After filling this form, submit your ID and residential proof photocopy and 2 passport size photos in the post office. Take the original documents for verification. The signature of your witness or nominated person is required on the form.
• Initial deposits can be done through cash or check. In case of post-dated check, the date of the check will be the date for opening the account. Once the processing is completed, the post office officer will give you details of your newly opened account.