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Post office Monthly Income Scheme

Post Office Monthly Income Plans, Money and FinanceThe post-office monthly income scheme (MIS) provides for monthly payment of interest income to investors. It is meant for investors who want to invest a sum amount initially and earn interest on a monthly basis for their livelihood. The Postal MIS is meant to provide a source of regular income on a long term basis. In India the post office MIS is a popular scheme for retired persons who can earn monthly income by way of safely depositing lump sum amount in the post office.

The MIS can be opened with any Postal branch in the country. This scheme gives a fixed return of 8% and pays interest monthly. The MIS matures in 6 years and the maximum amount that can be invested is Rs. 3 lakhs for an individual and Rs. 6 lakhs for a joint account. The interest income accrued in the MIS is taxable.

Features of Postoffice MIS

  • Interest rate of 8% per annum payable monthly.
  • Maturity period is 6 years.
  • Minimum investment amount is Rs.1000/- or in multiple thereof.
  • Maximum amount is Rs. 3 lacs in single account and Rs. 6 lacs in a joint account.

  • Account can be opened by an individual, two/three adults jointly and a minor through a guardian.
  • A minor having attained 10 years of age can open an account in his/her own name directly.
  • Non-Resident Indian / HUF cannot open the Account.
  • Minor has a separate limit of investment of Rs. 3 lacs and the same is not clubbed with the limit of guardian.
  • A separate account is opened for each deposit.
  • Any number of accounts can be opened subject to the maximum prescribed limit.
  • Facility of automatic credit of monthly interest to saving account if accounts are at the same post office.
  • Facility of premature closure of account after one year @ 3.50% discount.
  • Facility of reinvestment on maturity of an account.
  • Account is transferable from one post office to othee Post office in India free of cost.
  • Nomination facility available.
  • Rebate under section 80 C not admissible.
  • Interest income is taxable, but no TDS

How much to Invest in PostOffice MIS

Minimum - Rs. 1500/-

Maximum - (i). Rs. 3.0 lacs for single account

(ii). Rs. 6.00 lacs for joint account.


Returns from MIS,Money and Finance(i). On Maturity with bonus

(ii). Premature

(a). After one year with deduction of 2% of deposited amount.
(b). After three years with 1% deduction.

Maturity Bonus

5% Maturity Bonus w.e.f. 08-12-2007

How to Open the Post office MIS Account?

A person can buy a Post office MIS at any post-office in India. When he opens an MIS account , he l gets a certificate issued by the post office. In addition, the investor is provided with a passbook to record his transactions against his MIS.



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