The scheme is meant for investors who want to invest a lump sum amount initally and earn interest on a monthly basis for their livelihood. The scheme is, therefore, a boon for retired persons.

RATE OF RETURN:
9.5 % p.a. payable monthly; bonus of 10% is also payable on maturity.

TAX CONSIDERATIONS:
Interest qualifies for deduction u/s 80 L.

MODE OF ACCOUNT-HOLDING:
The account can be opened by
a. a single adult
b. two or three adults jointly
c. by a guardian on behalf of a minor or person of unsound mind
d. a minor who has attained the age of 10 years

A depositor or depositors may open more than one account either in the same post office or in different post offices.

MODE OF PAYMENT:
The certificate can be purchased on payment by
a. cash
b. local cheque, pay order or demand draft drawn in favour of the post-master and by presenting a duly-signed withdrawal form or cheque, together with the pass book for withdrawal from the post office savings account, standing at the credit of the purchase at the same post office.

NOMINATION:
Nomination facility is available. Nomination can be made either at the time of opening the account or at any time afterwards during the tenure of the account.

INVESTMENT LIMITS:
Only one deposit can be made in one account, in multiples of Rs 1,000. No subsequent deposit should be accepted in the same account.

With effect from March 1st, 2000, the maximum deposits in all the accounts taken together should not exceed Rs. 3 lakh in a single account and Rs. 6 lakh in a joint account.

TENURE:
The tenure of the MIS scheme is six years.
No final withdrawal will be permitted in the account before the expiry of a period of 6 years from the date of opening of account.

MONTHLY INTEREST CREDIT:
Interest is payable, monthly, to a depositor after one month from the date of deposit. If a depositor does not claim interest earned in a given month, no additional interest would be paid on it.

If authorised by a depositor, the monthly income earned can be credited automatically to the savings bank account held by the depositor in that post office. This facility is not available in sub and branch post offices.

PREMATURE ENCASHMENT:
Premature closure of the account is permitted any time after the expiry of a period of one year of opening the account. Deduction of an amount equal to 5% of the deposit is to be made when the account is prematurely closed. Provided that no such deduction shall be made if the account is closed after expiry of 3 years from the date of opening of such account.

The 10% maturity bonus is also denied in case of premature withdrawals.

ENCASHMENT AT MATURITY:
The deposit made in the MIS account will be paid by the post office at which the account stands, after six years of the date of deposit, along with a bonus equal to 10% of the amount of the deposit.