National Savings Monthly Income Account can be opened by citizens seeking regular income on their investment. It is a risk-free investment that gives monthly returns on the amount deposited. The account can be opened in the local post office as well.
Documents Required to open the National Savings Monthly Income Account
- Account Opening Form
- Passport size photograph
- Self-attested identification proof
- Self-attested address proof
- Deposit amount
- In the case of an illiterate person, the documents need to be attested by Gazetted officer/sarpanch, branch/head/chief postmaster, etc. In case the account is opened through the agent, the documents need to be signed by the agent as well.
Who can open an account?
Following people can open a National Savings Monthly Income Account in a post office:
- any Individual above the age of 18.
- joint Account can be opened by a maximum of 3 adults
- Minor whose age is above 10 years
- A guardian on behalf of a person with an unsound mind or a minor.
Key Features of National Savings Monthly Income Account
- The applicant can open an account by payment of cash/cheque or demand draft of the investment amount. The date of the starting of the account shall be considered from the date of realization of cheque.
- The National Savings Monthly income account can be opened for a minimum amount of Rs. 1000/- to 4.5 Lakhs for a single account. The maximum limit in the case of a joint account is 9 Lakhs.
- In the case of a Joint account, a maximum of 4.5 Lakhs can be invested by an individual.
- The share of everyone is distributed equally for each of the account holders of a joint account.
- The interest is payable monthly and is calculated at the yearly interest rate of 7.6% per annum effective from 01 July 2019.
- The maturity period is 5 years from the date of opening the account. ‘
- An individual can open any number of accounts with a maximum investment of 4.5 Lakhs in total for all accounts.
- Interest is credited monthly in the savings account of the account holder in the post office.
- Interest shall be payable to the account holder on completion of a month from the date of deposit
- The account holder gets a bonus of 5% on the principal amount on maturity of MIS accounts opened on or after 8.12.07 and up to 30.11.2011. However, the bonus is not payable for accounts opened on or after to 1.12.2011.
- No further interest is payable on any due interest not claimed by the account holder on the due date.
- The account holder can transfer the account from one post office to another.
- The account holder can nominate a family member or legal heir at the time of opening the account or before maturity.
- A Joint account can be converted to a single account and vice versa.
- Once the Minor has attained the age of maturity he or she needs to apply for conversion of the account in his or her name.
Closure of Account
- The maturity period is 5 years, the account is closed after completion of 5 years.
- In the case of Death of the single account holder, the account can be closed by submission of the relevant documents.
- In case of the death of the joint account holder, the existing account holders need to submit the relevant documents related to the death of the joint account holder.