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Possibility of opening multiple MIS accounts at the Post Office: limits of 9 and 15 thousand
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Aaj Tak
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Possibility of opening multiple MIS accounts at the Post Office: limits of 9 and 15 thousand

Public trust in the Post Office's small savings programs remains high, especially among those who wish to keep their savings in a safe place and receive regular income from them. The Post Office's Monthly Income Scheme (MIS) is one of these popular options.

However, investors often ask: can one person open more than one MIS account in their name? The answer is yes, but there is an important condition. Opening multiple accounts does not mean that the investment limit can be exceeded.

One person can have several accounts in the Post Office MIS. Thus, if it is convenient for a person to keep money in different accounts, they can open multiple MIS accounts. Nevertheless, it is critically important to consider that the total amount deposited into all personal MIS accounts is summed up. Consequently, opening multiple accounts does not allow increasing the maximum investment limit.

For example, if 400 thousand rupees are deposited in one account and 500 thousand rupees in another, the total amount of personal investments in MIS will be considered 900 thousand rupees. A third account can be opened, but funds exceeding this limit cannot be deposited into it.

According to current rules, a maximum of 9 lakh rupees can be deposited into a personal MIS account. Even if a person opens several personal accounts, the total amount across all these accounts will not exceed 9 lakh rupees. Consider a simple example: if three MIS accounts are opened—300 thousand rupees in the first, 200 thousand rupees in the second, and 400 thousand rupees in the third—the total investment volume will be 9 lakh rupees. Opening a fourth account will not allow investing an amount above this limit.

If an MIS account is opened jointly by two or more persons, the maximum amount that can be deposited reaches 15 lakh rupees. The same rule applies here: opening multiple joint accounts does not increase the overall investment limit. The total amount deposited into all joint accounts will be limited to 15 lakh rupees. For instance, if two joint accounts have 800 thousand and 700 thousand rupees respectively, the total contribution will be 15 lakh rupees, and further increasing this amount in another joint account is impossible.

A natural question arises: if the total investment limit remains the same, why open multiple accounts? In fact, the ability to open multiple accounts is not related to increasing the investment limit. It is used to place funds in different accounts or to meet various needs. However, it is extremely important to remember the maximum limit applicable to the total amount.

When depositing the maximum amount of 9 lakh rupees into a personal MIS account, the annual interest rate is about 7.4%, which is equivalent to approximately 66,600 rupees per year. Dividing this amount by 12 months yields an income of about 5,550 rupees monthly. That is, with a lump-sum investment of 9 lakh rupees, one can expect to receive about 5,550 rupees per month as interest, which is accrued separately from the principal deposit.

The term of the Post Office MIS is 5 years, so before investing, you should consider whether you will need these funds in the near future. This scheme can be particularly useful for those who want to receive a regular monthly income from a lump-sum investment and are willing to keep the money for several years.

Funds from an MIS account can be withdrawn one year after its opening. However, early closure may incur penalties according to current regulations. Therefore, the decision to invest should not be based solely on receiving a monthly percentage; one must also assess whether the amount will be needed in the coming years.

According to the scheme's rules, a penalty is applied upon early closure of the account. This may affect the amount you receive when withdrawing funds before the term expires. Special attention should be paid to penalties applied when closing the account before reaching the maturity date, for example, after 3 years.

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How many bank accounts should you have: Financial expert recommendations
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How many bank accounts should you have: Financial expert recommendations

Although having multiple bank accounts may seem like a sign of greater financial freedom, an excessive number of accounts can complicate banking operations instead of simplifying them. While separating funds across different accounts can facilitate control over expenses, savings, and achieving other financial goals, the question arises as to how many accounts a person should have and what the function of each one should be.

According to financial experts, most people need one primary account and one additional savings or reserve account. A third account may be justified depending on needs and financial obligations, but opening numerous accounts without a clear reason does not bring significant benefit.

The main advantage of using more than one account is the ability to distribute money according to different needs. For example, one account can be used to receive salary, pay household expenses, and conduct daily transactions. A second account can be dedicated to savings or achieving a specific financial goal. This approach allows funds for spending and savings to be kept separate, which simplifies the monthly understanding of expenditures and accumulations. Furthermore, the second account can serve as a reserve: if the primary account encounters technical problems, the card stops working, or there is temporary access issues, necessary payments can be made through the backup account.

For most users, two accounts are sufficient. One account is intended for regular income, household expenses, and daily operations, while the second account is used for savings or achieving specific financial goals. The advantage of this scheme is that savings are separated from funds designated for daily expenses, which reduces the likelihood of unintentionally spending savings.

Every person's needs are unique. A third account may be required if a person has multiple sources of income, needs banking services in different cities, or wishes to take advantage of specific benefits offered by a particular bank. In such a case, one account can be allocated for current expenses, the second for long-term savings, and the third for fulfilling a special task. However, it is critically important that every account has a clearly defined purpose. Constantly opening new accounts solely for stocks, cashback, or minor bonuses is not a sensible decision.

Having a large number of accounts implies the need for constant monitoring of each one. Different accounts may have their own requirements regarding minimum balances, commissions, bank notifications, and other rules. If any account is unused for a long time, it must be periodically checked. With a large number of accounts, it can become difficult to track the balance on each one and remember for what specific purpose each account is intended. Therefore, it is simpler to maintain a simple banking system that meets your needs rather than increasing the number of accounts.

Before opening a new bank account, ask yourself the following questions:

If the answers to these questions are positive and there is a clear need for a new account, then opening it will be advisable.

It is also important to regularly check old accounts:

One must not forget about accounts after they are opened. It is necessary from time to time to check which accounts are actually being used and which have lost their relevance. If an account has been inactive for a long time and has no obvious purpose, it is worth considering closing it to simplify the banking system. Additionally, you should activate bank notifications for all active accounts and regularly check transactions made.

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