Monthly Income Scheme (MIS) Post Office account is the most popular investment product among all those who want safe returns in India. A post office scheme sponsored by the government, the scheme provides the investor with a monthly return on investing a lump sum amount. With the passage of time, the MIS Post Office account can be transferred from one branch to another for any reason such as change of address or convenience. Here, you will know how you can transfer your MIS Post Office account from one branch to another very easily.
Get to know about the MIS Post Office Scheme
You should be aware of what MIS Post Office MIS Post Office account is prior to applying for transfer procedure. It is the Indian post office’s five-year lock-in savings plan wherein they give a return on investment on their deposit every month with assured income for five years. The points highlighted are:
1. Investment Limit Rate: ₹4.5 lakh can be invested for individual accounts, and it is ₹9 lakh for joint accounts. The minimum limit is ₹1,000.
2. Rate of Interest: Until October 2023, the interest rate is 7.4% per annum. The interest will be compounded quarterly.
3. Eligibility: Indian citizens who are living in India and above the age of 18 can utilize it.
Reasons of MIS Post Office Account Transfer
There can be a number of reasons because of which you may be asked to transfer your MIS Post Office account from one office to another. They are:
1. Migration: It is because of a change of city or district of residence, because of which account transfers to a nearby office become compulsory.
2. Convenience: In case you are not satisfied with service at your current branch or it is very far geographically, you can avail the facility of a transfer.
3. Proximity: Most individuals rarely move to another branch due to better infrastructure or convenience at home.
Steps for Transferring an MIS Post Office Account from One Branch to Another
If you want to transfer your MIS Post Office account, then follow the step-by-step process given below so that your transferring becomes easy:
Step 1: Keep Required Documents Ready
Keep all the required documents ready before you go for the transfer. They are mainly:
– MIS Account Passbook: Be your investment account paper.
– Proof of Identity: Aadhaar Card, PAN Card, or any other government-monitored paper.
– Address Proof: New address entries like Aadhaar Card or bill.
– Account Transfer Form: This can be collected at the post office branch where the account is held.
Step 2: Go to the Current Branch
Go to the post office branch where your MIS account is held. Complete the account transfer form, original passbook, and documents required. Update your KYC information in their database.
Step 3: Transfer Request
Inform your application to the branch personnel. The form for transferring accounts should be filled with:
– Current account details (e.g., account number and names of owners).
– Branch information to which the account is to be transferred.
Step 4: Verification Process
Your documents will be scanned by the post office staff. They may ask for proof of transfer (e.g., letter of employment or lease contract) if transfer is on account of shifting to a different city. On verification:
– Transfer request is made.
– The target branch is informed by the target branch of transfer.
Step 5: Target Branch Confirmation
The receiving branch will then ensure that it has received the account details from the sending branch upon making the transfer. It will do this in 7-15 working days, but this may vary based on the ability of branches.
Step 6: Pick Up Improved Passbook
After effecting the transfer, proceed to the receiving branch and pick your improved passbook account with new branch details.
Important Points to Remember
1. Calculation of Interest Transfer
Interest payment must not be split in between while making a transfer. Interest to be accrued at the source is transferred and carried forward at the destination branch.
Example:
– Suppose you have a deposit of ₹1,00,000 with an annual interest rate of 7.4%.
– Monthly installment = (₹1,00,000 × 7.4%) / 12 = ₹616.67.
– During transfer within 10 days, no break in payment schedule after transfer must happen.
2. No Transfer Fee:
No branch-to-branch account transfer charges to be charged by the post office.
3. Joint Accounts:
Both the joint account holders sign on transfer request form in joint MIS account.
Precautions During Transfer Process
1. Verify every item of information filled up in the transfer form and altered passbook.
2. Ensure proper coordination between both the branches to avoid doubt.
3. Show proof of your request (e.g., receipt delivered by post office staff).
4. Maintain duplicate copies of all submitted documents and forms for your own use.
Sample Transaction
Consider the case of hypothetical MIS investor Mr. Sharma, who wishes to transfer his MIS Post Office account:
– Current Deposit: ₹5,00,000.
– Rate of Interest: 7.4%.
Monthly income:
₹5,00,000 × 7.4% ÷ 12 = ₹3,083.33.
In the event of transfer within 12 days (short of the normal 30-day duration)
Interest for days:
₹5,00,000 × 7.4% ÷ 365 × 12 = ₹121.64.
Streamlining transfer of Mr. Sharma’s account so that the next month’s installment is not delayed.
Common Challenges and Solutions
1. Delay in Processing
While post offices try their best to ensure processing is smooth, it can get delayed because of workload or staff absence. Make sure you clarify deadlines with both branches so that you remain on your toes.
2. Discrepancy in Account Details:
In case there is any discrepancy (e.g., mismatch of KYC details), rectify the discrepancy before initiating the transfer.
Tax Implications on MIS Post Office Accounts
MIS payment comes under taxation as “Income from Other Sources”. As there is no TDS, it is mandatory on the investor’s side to declare profits. Exercise due care to make use of a tax consultant in case of declarations under your income tax return.
Final Disclaimer
Even though the MIS Post Office scheme is identified as one of the safest of the investment, all the investors will be required to analyze the pros and cons, i.e., rate of interest, lock-in period, and taxation criteria before they become part of any financial deal. Transfer of the account from one branch to another must be done after operational needs and procedural requirements are established.
Summary
Transfer of an MIS Post Office account from one branch to another of India is a hassle-free transaction for the investor. Ongoing demand due to change or non-availability, transfer of account is done by submitting account transfer slip, address proof and identity documents, and communication exchange between source and receiving branches. Remittance will be done within 7–15 working days and the already accrued interest of the investor will be automatically remitted.
Points to recall are:
– Remittance of MIS account is free of charge.
– KYC records have to be accurate to avoid any discrepancy.
– Interest calculation on a regular basis continues uninterrupted when it is being remitted.
Suppose an investor has ₹5,00,000 at a rate of interest of ₹3,083.33 per month, any interruption in the fund transfer will not change the payoff schedule. With the help of the above steps, one can get successful account transfer without facing any issue.
