Post Office Monthly Income Scheme (PO-MIS): A small savings program backed by the Government of India, enables investors to set aside (save) a specific sum each month. Then, at the applicable rate, interest is added to this investment and distributed to the depositor(s) on a monthly basis.
Post Office Monthly Income Scheme, amongst others such as Post Office Savings Account, Post Office Recurring Deposit, Post Office Time Deposit, is one of the highest-earning schemes with an interest rate of 7.4%. The interest in this scheme, as the name suggests, is disbursed monthly. This scheme, like other post office schemes, is recognized and validated by The Ministry of Finance.
Features of Post Office Monthly Income Scheme
- Tax benefits: The interest amount does not incur any Tax Deducted at Source (TDS); however, it also does not attract any tax benefits under Section 80C.
- Penalty: In case you wish to withdraw your investment corpus before the lapse of the lock-in period, a penalty is charged on the withdrawal amount depending on the time of such redemption.
- Investment amount: Any amount in the multiple of Rs. 100 is admissible as an investment.
- Eligible residential status: Every Indian citizen is eligible to open a PO-MIS account; however, NRI individuals cannot.
- Auto-withdrawal: You can opt to withdraw the monthly interest amount on your investment through automatic transfer to your savings account through PDCS or ECS. If the POMIS account is with a CBS Post Office, then the interest amount can be directed towards any other CBS centric savings account.
- Minor account: You can open a POMIS minor account in the name of your child. The Post Office Monthly Income Scheme age limit for minors is above 10 years. He/she can withdraw the amount after maturing for 18 years.
- Lock-in period: When you open a Monthly Income Scheme account with a post office, you cannot withdraw the amount deposited in such account prior to 5 years.
- Transferrable: In case, you are changing your residential status to a different city anywhere in India, you can transfer your POMIS account to a convenient post office. Your Post Office Monthly Income Scheme investment corpus and interest disbursal will be carried forward to such a post office.
- Maximum limit: You can make a maximum investment of Rs. 9 Lakhs in the scheme. Even if you hold the scheme in multiple post offices, the aggregate of all your deposits cannot exceed Rs. 9 Lakhs. In the case of joint accounts as well, the share of your investment should be within the specified limit. The maximum limit for minor accounts is Rs. 3 Lakh. The minimum amount which can be invested is Rs. 1,500 for any individual.
|Type of Account||Maximum Limit|
|Single Account||Rs. 9 Lakh|
|Joint Account||Rs. 15 Lakh|
|Minor Account||Rs. 3 Lakh|
- Joint account: A maximum of 3 individuals can open a joint account for this scheme. In the case of joint accounts, each investor possesses equal rights over the account. The maximum limit in the case of joint accounts is Rs. 15 Lakhs, and the singular limit is Rs. 9 Lakhs
Documentation Required for PO MIS
- Identity Proof: Copy of government issued ID such as Passport / Voter ID card / Driving License/Aadhaar, etc.
- Address Proof: Government issued ID or recent utility bills.
- Photographs: Passport size photographs
Eligibility of MIS Scheme in Post Office
- A POMIS account can only be opened by a resident Indian.
- This system does not apply to non-resident Indians.
- Anyone above the age of 18 can open an account.
- You can open an account on behalf of a minor who is 10 years old or older. When kids reach the age of 18, they will be able to access the fund.
- After reaching the age of majority, a minor must apply for conversion of the account in his name.
Post Office MIS Interest Rates
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%|
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