Post Office Mis Interest Rate 2023

Post Office Monthly Income Scheme Account (MIS) –

You can deposit a sum of Rs 1,000 up to Rs 9 lakh in a single account and up to Rs 15 lakh in a joint account.You can earn an interest rate of 7.4% p.a. for Q2 FY 2023-24 through this account and get a monthly fixed income from the scheme.The maturity period of POMIS is 5 years.You cannot prematurely close the account before completing one year. Premature closure beyond one year can attract penalties.For example, if you invest up to the maximum amount of Rs 9 lakh in Post office MIS account for a term of 5 years, you will receive monthly interest of Rs 5,325 every month up to the end of the tenure. You wil get the deposit amount of Rs 9 lakh at the end of the term of five years.The interest income in post office TD/RD is received at the end of the term but interest from post office MIS is received monthly during the tenure of scheme.

What is the interest rate of MIS in 2023?

Post Office MIS Interest Rate History

Time Period POMIS Interest Rate (Per Annum)
1st April 2023 – 30th June 2023 7.40%
1st January 2023 – 31st March 2023 7.10%
1st October 2022 – 31st December 2022 7.10%
1st April 2020 – 30th September 2020 6.60%

What will be the interest in post office in 2023?

Interest rates From 01.07.2023 to 30.09.2023

Period Rate
1yr.A/c 6.9%
2yr.A/c 7.0%
3yr.A/c 7.0​%
5yr.A/c 7.5 %

What is the new interest rate of MIS?

Current Interest Rates on Post Office Monthly Income Scheme – The Rate of interest is fixed and resettled by the Central Government and Finance Ministry every quarter depending on the returns yielded by Govt. bonds of the same tenure. The Post Office Monthly Income Scheme interest rate 2023 ( July to September 2023) is 7.4%. The following are the historical Post Office MIS Interest Rates* :

Period Interest Rate on Post Office MIS (annual)
1st April 2023 – 30th June 2023 7.4%
1st January 2023 – 31st March 2023 7.1%
1st October 2022 – 31st December 2022 6.7%
1st July 2022 – 30th September 2022 6.6%
1st April 2022 – 30th June 2022 6.6%
1st April 2021 – 31st December 2021 6.6%
1st April 2018 – 30th June 2018 7.3%
1st January 2018 – 31st March 2018 7.3%
1st October 2017 – 31st December 2017 7.5%
1st July 2017 – 30th September 2017 7.5%
1st April 2017 – 30th June 2017 7.6%

Rates subject to change as per government notification. Interest payout on POMIS occurs monthly.

Will interest continue to rise in 2023?

Will they Continue to Rise? – Despite the RBA keeping rates on pause at their July 2023 meeting, Hutley says that what the RBA does next will depend on some key economic data, such as the release of the June quarter consumer price index (CPI) data in late July, which will provide insight into how quickly inflation is falling.

  • But, she adds, “we certainly can’t rule out further interest rate increases”.
  • On balance, there is enough momentum for slowing of the economy that further interest rate rises are not warranted, because we haven’t seen all of the impact of the previous rate rises yet.
  • I think there’s enough downward momentum in inflation, and to go any further would risk recession,” Hutley says.

Gray, on the other hand, is more bearish, predicting a further 0.25% rise in interest rates in August, and an additional rise before the end of 2023, taking the official interest rate to 4.6%. She says that while inflation seems to have peaked, it’s still a long way above the 2-3% target and isn’t falling fast enough or across enough of the categories CPI measures.

  • For that reason, we think that there’s more to be done, unfortunately, which is going to be very painful.” Mousina is also forecasting another two 0.25% interest rate increases before 2023 is out but says there is a risk that “the cash rate could get even a little bit higher and closer to 5%”.
  • She thinks the RBA will hike again in August and adds that “the next one could come in September, after the second quarter wages data is released”.

That is because besides inflation remaining at a higher level than the RBA would like, Mousina says the recent decision by the Fair Work Commission to increase the minimum wage and Award wages by 5.75% was higher than forecast and, as a signal to the broader market on wage increases across the economy, could add some upside inflationary risks.

What is the maximum limit of MIS in post office?

The limit for single account users under the Post Office Monthly Income Scheme ( POMIS ) has increased from Rs 4 lakh to Rs 9 lakh and the maximum for joint holding has been raised from Rs 9 lakh to Rs 15 lakh, according to the Budget 2023 announcement.

  1. This budget proposal is yet to become the rule as the Finance Bill is yet to be passed.
  2. Monthly Income Scheme (MIS) Under the MIS, individual who opens a MIS will get interest payments every month.
  3. The interest rate for this program is revised by the government every quarter.
  4. For the current January – March 2023 quarter, interest rate is 7.1%.

The minimum investment is Rs 1000 and in multiples of Rs 1000. Also read: Invest up to Rs 30 lakh in Senior Citizen Savings Scheme from Apr 1, 2023: What is SCSS, tax benefits, withdrawals, interest rate How to open Post office monthly income scheme Interested individual can open Post office MIS by submitting the following documents Submit the following forms/documents duly signed and filled at desired Post Office.

Account Opening FormKYC Form (For new customer/modification in KYC details))PAN CardFor Joint Account, KYC documents for all joint holders to be submitted.

Aadhaar card, if aadhar is not made available the following document may be submitted.1. Passport 2.Driving license 3. Voter’s ID card 4. Job card issued by MNREGA signed by the State Government officer 5. Letter issued by the National Population Register containing details of name and address.

  1. Proof of date of birth/birth certificate in case of minor account.
  2. Birth certificate is mandatory in Sukanya Samriddhi Account).
  3. Interest payment From the opening date until maturity, payment of interest is made at the end of each month.
  4. If the depositor made an extra deposit, the excess deposit will be reimbursed, and only PO Savings Account interest will apply from the day the account was opened to the date the excess deposit was repaid.
You might be interested:  Women'S U19 Cricket World Cup 2023 Points Table

Interest is taxable in the hand of depositor. According to the India Post, “If the deposit is made on 29th, 30th and 31st of a month and if these dates do not come in the following month, the payment of monthly interest shall be made on the last date of the following month and if such last day is a holiday, monthly interest shall be paid on the preceeding day.” POMIS tenure The tenure of POMIS is 5 years.

No deposit can be withdrawn before the year from the date of deposit has passed. A 2% reduction from the principle will be made and the remaining balance will be paid if the account is closed after one year but before three years from the date of account opening. If the account is closed after three years, 1% of the deposit will be withheld and the remaining amount will be paid.

The account can be closed, and the money refunded to the nominee or legal heirs in the event that the account holder passes away before the maturity. Interest will be paid up to the month before the refund is issued. The deposit and the interest accrued will be paid after completion of five years from the date of the opening the account to the account holder on an application in Form-3.

What is the interest rate of MIS in SBI?

Related Articles – –

  • The best FD options for monthly income are:
  • #1 SBI Annuity Deposit #2 Kotak Bank FD #3 Axis Bank FD #4 IDFC Bank FD
  • #5 HDFC Bank FD

The interest rate of the SBI monthly income scheme fixed deposit ranges from 3.5% to 7.25%. The higher rates are for senior citizens. Yes, SBI Annuity Deposit Scheme offers monthly income to investors on their deposited amount. It works more like a loan for their initial deposit in the form of EMIs.

  1. The Annuity deposit from SBI accepts a lump sum amount from the investor and this deposit is repaid to the investor in Equated Monthly Instalments (EMIs) over a period of time.
  2. These EMIs include the deposited amount and interest on its principal amount.
  3. Annuity plans offer higher interest rates as compared to fixed deposits.

The interest rate in an annuity plan may fluctuate based on market fluctuations but still, they are higher than standard fixed deposits. Also known as, the Special Term Deposit, an SBI Fixed Deposit Double Scheme is the best way for investors to double up their investment at the time of maturity.

What is the interest rate on 5 years deposit in post office?

Post office FD interest rates

Tenure (years) Post office FD interest rates Bajaj Finance FD interest rates
1 year 6.80% p.a. 7.40% p.a.
2 years 6.90% p.a. 7.55% p.a.
3 years 7.00% p.a. 8.05% p.a.
5 years 7.50% p.a. 8.05% p.a.

Which bank MIS rate is best?

The Interest Rate Of The Monthly Income Scheme For Senior Citizens –

Bank Tenure Interest Rate
HDFC Bank 7 days to 10 years 3.00% to 6.25%
SBI Bank 7 days to 10 years 3.4% to 6.2%
Axis Bank 7 days to 10 years 2.50% to 6.25%
Kotak Bank 7 days to 10 years 3% to 5.8%
IDFC First Bank 7 days to 10 years 3.25% to 6.25%
Bank of Baroda 7 days to 10 years 3.30% to 5.75%
Punjab National Bank 7 days to 10 years 3.40% to 5.75%
IDBI Bank 7 days to 10 years 3.20% to 5.75%

The FD interest rates are subject to change. Please check the bank’s website for the latest FD rates.

What is MIS for senior citizens?

Rs 69,150 monthly income with govt guarantee: How senior citizens can invest to build their own pension Getting a government pension, which is a safe and guaranteed regular income, after retirement has always been a dream for many people. While everyone cannot be eligible to get a government pension, you can generate a good amount as government-backed regular income during your retirement years by investing in certain schemes.

The scope for higher regular income has increased substantially after the Budget 2023 proposal to enhance the investment limit for ‘ Saving Scheme (SCSS) from Rs 15 lakh to Rs 30 lakh and for Post Office Monthly Income Scheme (MIS) from Rs 4.5 to Rs 9 lakh. In combination with other government schemes, these can help you to generate a regular monthly income of Rs 69,150.

Let us understand how you can optimise your regular income through these schemes. When you invest only in fixed rate avenues: Conservative investors who prefer certainty in their regular income can go for options that offer a fixed return for the entire duration of the investment.

For instance, the interest rates of SCSS and MIS may change every quarter. However, once you invest at a particular rate, your returns are locked in at that rate and so remain fixed for the entire investment tenure of 5 years. However, the enhanced limit of SCSS and MIS will be effective only in the next financial year, which starts on April 1, 2023.

So, you may opt to invest a maximum amount of Rs 15 lakh in SCSS and Rs 4.5 lakh in MIS now and then top it up with similar amounts in the next financial year, beginning April 1, 2023. Do remember that SCSS offers only quarterly payments. So if you invest Rs 15 lakh, you will get a quarterly income of Rs 30,000, which is equivalent to a monthly income of Rs 10,000.

Besides these, you can opt for the Pradhan Mantri Vaya Vandana Yojana (PMVVY), which has been specifically made for senior citizens. You can invest up to Rs 15 lakh and get a return of 7.4% when you go for the monthly mode of interest payment. However, this scheme in its current form is open for investment only until March 31, 2023.

The government may or may not relaunch the scheme after that. So, you can invest before this date to lock in this return for at least 10 years. How senior citizens can maximise their fixed regular income (Rs 54 lakh corpus)

Investment scheme (interest rate p.a.) When to invest Investment amount Monthly income (equivalent)
PMVVY (7.4%) Before March 31, 2023 Rs 15 lakh Rs 9,250
SCSS (8%*) Before March 31, 2023 Rs 15 lakh Rs 10,000
Post Office MIS (7.1%*) Before March 31, 2023 Rs 4.5 lakh Rs 2,662.5
SCSS (8%*) After March 31, 2023 Rs 15 lakh Rs 10,000
Post Office MIS (7.1%*) After March 31, 2023 Rs 4.5 lakh Rs 2,662.5
Total Rs 54 lakh Rs 34,575
Quarterly payout in SCSS; *For quarter ending March 31, 2023, and subject to change in future
You might be interested:  How Many Students Will Appear For Neet 2023

When you include floating rate option: If you want a secure regular income with good returns and are comfortable with some degree of fluctuation, then you may go for RBI Floating Rate Savings Bond. This offers an inflation-beating return which is linked to the interest rate of the National Savings Certificate, and offers a premium of 0.35% above the rate offered by NSC.

  • Among the small savings schemes, NSC is known to offer an attractive interest rate, which is linked to the government bond’s yield.
  • RBI’s floating rate bonds have no upper limit for investment.
  • So if you want government-guaranteed, inflation-linked return as a part of the portfolio, you can invest a good part of your retirement corpus here.

Currently, this bond offers a return of 7.35%, which is quite attractive. If you invest Rs 54 lakh in this bond, you can get a semi-annual income of Rs 1.98 lakh, which is equivalent to a monthly income of Rs 33,075. Creating regular income for senior citizens with RBI floating rate bond (Rs 1.08 crore corpus)

Investment scheme (interest rate p.a.) When to invest Investment amount Monthly income (equivalent)
PMVVY (7.4%) Before March 31, 2023 Rs 15 lakh Rs 9,250
SCSS (8%*) Before March 31, 2023 Rs 15 lakh Rs 10,000
Post Office MIS (7.1%*) Before March 31, 2023 Rs 4.5 lakh Rs 2,662.5
SCSS (8%*) After March 31, 2023 Rs 15 lakh Rs 10,000
Post Office MIS (7.1%*) After March 31, 2023 Rs 4.5 lakh Rs 2,662.5
RBI Floating Rate Bond (7.35%*) Before March 31, 2023 Rs 54 lakh Rs 33,075
Total Rs 1.08 crore Rs 67,650
Quarterly payout in SCSS, semi-annual payout in RBI Floating Rate Savings Bonds 2020; *For quarter ending March 31, 2023, and subject to change in future

You can double your income if you invest with your spouse: Most schemes giving higher interest rates are for senior citizens. So, if your spouse is also a senior citizen, you can invest with them and follow the same process as shown above. This will double your monthly income from Rs 34,575 to Rs 69,150 when you go with only fixed income options and a retirement corpus of Rs 1.08 crore.

  1. However, if you have a bigger corpus of up to Rs 2.16 crore, you double this monthly income from Rs 67,650 to Rs 1,35,300.
  2. However, if your spouse is yet to become a senior citizen, then you have the option to invest all alone — as shown above — or get your spouse to invest in non-senior citizen-specific schemes like Post Office MIS and RBI Floating Rate Bond till they become a senior citizen.

Must retain a good part in liquid investment: As most government-backed investment options come with a long lock-in period, you should not forget to keep a good amount of corpus in liquid form to deal with emergencies and other life contingencies. You can keep your liquid funds in savings bank accounts, fixed deposits or debt mutual funds.

What interest rate to double in 5 years?

If you wanted to double your money every 5 years, you would need to generate an annual rate of return of 14.4%.

Which is better RD or FD?

RD allows the investors to systematically save small amounts each month whereas FD requires the investor to invest a lumpsum amount at once. Ultimately, whether to invest in FD or RD depends upon the investor’s goals and preferences.

Could interest rates fall in 2024?

When will interest rates fall? – There’s no way of knowing for certain what the coming months and years hold for interest rates. But until inflation comes down, it’s unlikely that the Bank of England will lower the base rate. This is because it doesn’t want to encourage a greater level of spending and risk inflation spiralling even further.

However, rates being as high as they are is unsustainable, and the Bank understands this. Households’ monthly mortgage repayments are set to jump by hundreds of pounds, and this is an enormous added strain during a cost of living crisis. As a result, fears of a decline in spending, negative economic growth and a recession are mounting.

This means that as soon as inflation is back under control, the Bank is likely to bring interest rates down. So when will inflation fall enough for this to happen? The Bank says it expects the inflation rate to drop significantly throughout the remainder of 2023.

  • While it may not be able to slash interest rates quickly – or it could risk prices jumping again – a fall in inflation could mark the end of rising rates.
  • However, financial markets expect the base interest rate to keep climbing.
  • It is forecast to peak between 5.75% and 6% by the start of 2024.
  • How soon after this interest rates will fall will depend on how quickly inflation cools.

Projections from Berenberg Bank anticipate the base interest rate reaching as high as 5.5% by September. It expects the Bank of England to then lower rates to 4% by the end of next year.

Where will interest be in 2024?

What should mortgage borrowers do? – Mortgage rates have come down from the highs recorded in the aftermath of Kwasi Kwarteng’s infamous mini-budget last year. However, rates remain at levels not seen in more than a decade. Average two-year fixed rate mortgages are currently the same as they were at the start of 2009, according to Moneyfacts data, while five-year fixed rates remain as high as they were in 2011.

  • Rate rises: Mortgage rates have dropped after their spike but look to have found a level Ignoring those that have remortgaged in the past six months, many borrowers will be currently sitting on rates of 2.5 per cent or less.
  • Unfortunately, it’s unlikely they’ll secure a cheaper rate when they do remortgage, but they’ll likely do better than those who are remortgaging now at least.

‘Hopefully we’ll start to see mortgage rates fall,’ says Hagger, ‘but again this is likely to be a slow gradual decline – not the news the 1.8 million or so borrowers with fixed rate mortgage deals expiring this year want to hear.’ Simon Marsh, an associate director at mortgage broker, Private Finance, believes we could eventually see the best mortgage rates hovering around the 2.5 per cent mark in a year or two.

  1. He says: ‘Many predictions say that from July, we should start to see reductions in inflation, but the Bank of England is quick to put rates up and I feel will be slow to bring them down until they feel it is sustainable.
  2. ‘I believe by the end of 2023 we will see rates start to fall with a target of between 2.5 to 3 per cent in 2024.
You might be interested:  Board Exam 2023 Date Class 12

‘I believe if the base rate can get back to circa 2.5 per cent, then we will see rates hovering around that mark with a return to products that have not been seen in the mortgage industry for some time.’ Check the best deals you could apply for based on your home’s value and loan size with our best mortgage rates calculator,

How high will interest rates go in 2024?

Mortgage Interest Rate predictions for April 2024. Maximum interest rate 6.60%, minimum 6.22%. The average for the month 6.41%. The 30-Year Mortgage Rate forecast at the end of the month 6.41%.

What will UK interest rates be in 2023?

Why are the Bank of England raising interest rates? – The BoE are increasing interest rates in an effort to cool demand side effects to inflation. Higher interest rates increase the cost of borrowing and debt, meaning consumers have less of an incentive to borrow money for credit cards, loans or mortgages.

Higher interest rates also means you earn more money for your bank deposits and bonds, so it incentivises you to keep money at the bank and not spend it. Therefore, higher interest rates are an attempt to cool prices by weakening demand. There is a debate raging however, that UK inflation remains high not simply due to demand aspects but thanks to continued supply shortages due to post-Covid and Brexit, which opens the possibility that the Bank of England cannot fight UK Inflation on its own and that there needs to be a combined effort with the UK Government in terms of optimising supply constraints to help bring inflation back down.

Remember the Bank of England has a 2% inflation target which it must meet as part of its mandate. What is the impact on mortgages? This week the average 2 year fixed mortgage rate hit 6% which was the highest level since December 2023. There is every expectation that average fixed mortgage rates will continue to rise with UK interest rates set to rise further and after UK 2-year Bonds Yields (Gilts) rose to 5.12%.

  • This marks a significant rise since March 2023 when the same bond had a yield of 3.5%.
  • With more than 400,000 fixed rate mortgages set to expire between July and September, these borrowers are set to suffer renewals at materially higher mortgage rates that they have been used to.
  • IMPORTANT! Currently UK interest rates are forecast to peak at around 6.5% by the end of 2023 or start of 2024, which is far higher than initial predictions at the end of 2022, which were closer to 4.5%.

Please consider how higher interest rates might affect your borrowing and mortgages.

Will interest rates stay high?

How high will mortgage rates go in the UK? – It’s impossible to say how high interest rates may go without the aid of a crystal ball but the Bank of England has given some indication of how it expects things to progress in the future. The central bank has targeted getting inflation down to 2% by the end of 2024 – it is currently at a “higher than expected” 8.7%.

  1. But stubborn inflation rates mean rises could continue for a while yet.
  2. Interest rates are now expected to peak at nearly 6% in mid-2024, think tank Resolution Foundation has warned, with the average two-year fixed-rate mortgage hitting a high of 6.25% later this year.
  3. Some rates being offered on mortgages have already risen above 6% according to Uswitch,

The comparison firm reported that the average mortgage rate for a two-year fixed rate 90% mortgage was 6.57% on 13 July.

How long is interest rate future?

How Do Interest Rate Futures Work? – Interest rate futures as mentioned before can have any interest-bearing security as the underlying asset, These futures contracts are a legal agreement to either deliver the interest-bearing security at expiration or settle the contract in cash.

Underlying asset – the interest-bearing security the value of the interest rate future is dependent on Expiration date – the date in which the contract will be settled, either through physical delivery or if it is cash settled, this will be the last cash settlement Size – the total nominal amount of the contract Margin requirement – For cash-settled futures, this is the initial amount needed to enter into the futures contract, as well as the maintenance margin that the initial margin will need to stay above

There are a number of different types of interest rate futures, depending on the underlying instrument. These futures can also be short-term or long-term. Short-term interest rate futures have an underlying instrument with a maturity of less than one year, while long-term interest rate futures have an underlying instrument with a maturity of over one year.

The contract will also specify whether it is cash-settled, or the underlying asset is physically delivered at expiration. For cash-settled futures, they are settled on a mark-to-market basis and the differences in the value are settled daily, rather than aggregated at the expiration date. Physically delivered futures contracts will not require that a specific bond be delivered.

Instead, the specific requirements of the interest-bearing security will be given. This gives the short position the flexibility to deliver securities (that meet the requirements) that are cheapest to them.

What is the interest rate of post office year wise?

FY 2022-23

Scheme Name Annual Interest Rate (%)
Time Deposit (TD) – 3 Years 5.50%
Time Deposit (TD) – 5 Years 6.70%
Recurring Deposit (RD) 5.80%
Monthly Income Scheme (MIS) 6.60%

What is the interest rate for RD in Indian post?

Interest Rate: The interest rate on Post Office RD account ranges from 5.8% to 6.8% per annum, depending on the tenure of the deposit. Penalty for Delayed Payment: If you miss a monthly payment, you can pay the same with a penalty of Rs.1 per Rs.100 per month for each default.

Which bank has the highest interest rate for fixed deposit?

ICICI Bank – ICICI Bank offers 6.70% on tenure of 1 year to less than 15 months for general citizens. The bank offers the highest interest rate of 7.10% on tenure 15 months to less than 2 years. The rates are applicable from February 24, 2023. Canara Bank Canara Bank offers the highest interest rate of 7.25% on tenure of 444 days for general citizens.

Bank Interest rate Tenure
SBI Amrit Kalash 7.10% 400 days (13 M, 4 days)
ICICI Bank 6.70% 1 year to 15 months
HDFC Bank 6.60% 1 year to < 15 months
Canara Bank 7.25 444 days (14M, 2W)
Yes Bank 7.50% 1 Year to < 18 Months
SBI regular 6.80% 1 Year to less than 2 years

Source: Bank website as on June 15, 2023 Note that these interest rates are applicable for amounts below Rs 2 crore. Also note that these rates are applicable only for general citizens, seniors receive returns that are 0.5% greater than those of other customers, and partial and early withdrawals are subject to penalties and vary with banks.

Arjun Patel