What is Monthly Income Scheme
During the period of the account, investors will receive monthly income in the form of interest. The government sets the interest rate on a regular basis, and it is a low-risk scheme. Interest rate for the quarter January- March 2023 is 7.1%
The MIS account needs to be opened by visiting the Post Office and filling up a common account opening form. Photographs of applicants with KYC documents for identity, address proof need to be provided. Initial contribution cheque also needs to be given with the application.
The MIS account is valid for five years after it is opened. The account cannot be closed before the end of the year from the date of opening. If the account is closed after a year but before three years, 2% of the principal will be removed before repayment. After 3 years but before 5 years from the date of opening, 1% of the principal will be removed before repayment.