Post Office Scheme: The Post Office Monthly Income Scheme (MIS) is a favored choice for investors seeking a steady monthly income without the volatility of market-linked investments. In the event of the account holder’s demise, the fate of the funds deposited in the account becomes a critical concern for investors.
Overview of Post Office MIS:
– The Post Office Monthly Income Scheme is part of the government’s small savings scheme, specifically the National Savings (Monthly Income Account) Scheme, 2019.
– It has a 5-year tenure and offers an interest rate of 7.4 percent per annum, paid on a monthly basis.
– Individuals can invest up to Rs 9 lakh in a single account and Rs 15 lakh in a joint account.
Recipient of Funds
– The funds deposited in the MIS account upon the account holder’s death will go to the nominated individual, who must provide the requisite documents like the claim form, original death certificate, passbook, Aadhaar, and KYC documents.
– If there are multiple nominees, the funds will be distributed according to their predetermined shares, or equally if no shares were specified.
No Nominee Situation:
– In the absence of a nominee, the legal heirs can claim the amount, with settlements for amounts up to Rs 5 lakh based on prescribed documents like affidavits and indemnities.
– For amounts exceeding Rs 5 lakh, legal evidence like a court-issued succession certificate may be necessary, potentially leading to a prolonged claim process.
Joint Account Consideration:
– In the case of a joint MIS account, surviving account holders can continue the account as per the scheme rules post the demise of one account holder.
– Ensuring the nomination details are accurate and up to date can simplify the fund retrieval process for the family.
How much will be your monthly income?
If you invest Rs 15 lakh in the Post Office Monthly Savings Scheme at one go, you can get Rs 10,000 per month at the current interest rate of 7.4%.
- Amount invested: Rs 15,00,000
- Monthly income Rs 9,249
- Annual interest income Rs 1,11,000
- According to this, an investor will get Rs 9,250 every month for a period of 5 years, that is, the interest income during five years will be Rs 5,55,000.