All You Need To Know About Post Office Monthly Income Scheme (MIS)

India Post, under the Ministry of Communications, offers a wide range of financial products such as recurring deposits, savings accounts, time deposit, Kisan Vikas Patra, Senior Citizen Savings Scheme and National Savings Certificates, among other small savings schemes. Post Office Monthly Income Scheme (MIS) account is one such savings product which offers interest rate of 7.3 per cent per annum, according to India Post's website - indiapost.gov.in. The interest is payable on a monthly basis. (Also read: Post office public provident fund account key features explained)

Here are some of the details you need to know to invest in the post office Monthly Income Scheme (MIS):

The Post Office Monthly Income Scheme (MIS) account can be opened by an individual in multiples of Rs 1,500 for maximum investment limit of Rs 4.5 lakh. For joint account the maximum investment limit is Rs 9 lakh, according to the India Post website.

Also Read: Post Office Saving Schemes: Interest Rates Offered On Fixed Deposit, Recurring Deposit

The account can be opened by cash/cheque and in case of cheque the date of realisation of cheque in the government account will be date of the opening of account, according to India Post.

Nomination facility is available at the time of opening and also after opening of account.

Account can be transferred from one post office to another and any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.

Also Read: Post Office Saving Schemes: How Senior Citizen Savings Scheme Compares With PPF

Interest can be drawn through auto credit into savings account standing at same post office, through post-dated cheques or ECS in case of MIS accounts is at CBS Post office branch. Monthly interest can be credited into savings account standing at any CBS Post offices.

Maximum maturity period for the Post Office MIS account is five years.

The MIS account can be prematurely en-cashed after one year but before three years at the discount of 2 per cent of the deposit and after 3 years at the discount of 1 per cent of the deposit.