Post Office Monthly Income Scheme

1hls scheme appeals Lo conservaLlve lnvesLors wlLh LradlLlonal values and for good reason 1hls scheme offers
monLhly lncome and ls a safe guaranLeedbyLhegovernmenL opLlon lor reLlrees wldows and oLhers looklng
for a sLeady lncome lL can be ldeal 8ead on Lo learn more
The Post OIIice Monthly Income Scheme, or PO MIS, is oIIered by Indian Post OIIices. A lump sum amount is
deposited with the post oIIice and monthly interest earned each month is paid out to you.

As the scheme is oIIered by post oIIices, it is backed by the government. Thus, the PO MIS is one oI the saIest
investments available.


Post Office Monthly Income Scheme

O Interest rate of 8% per annum payable monthly.
O Maturity period is 6 years.
O Minimum investment amount is Rs.1000/- or in multiple thereof.
O Maximum amount is Rs. 3 lacs in single account and Rs. 6 lacs in a
joint account.
O ccount can be opened by an individual, two/three adults jointly
and a minor through a guardian.
O minor having attained 10 years of age can open an account in
his/her own name directly.
O on-Resident Indian / HUF cannot open the ccount.
Minor has a separate limit of investment of Rs. 3 lacs and the same
is not clubbed with the limit of guardian.
O separate account is opened for each deposit.
O ny number of accounts can be opened subject to the maximum
prescribed limit.
O Facility of automatic credit of monthly interest to saving account if
accounts are at the same post office.
O Facility of premature closure of account after one year @ 3.50%
discount.
O o deduction of 3.5% if account is closed on completion of three
years.
O Facility of reinvestment on maturity of an account.
O Interest not with-drawan does not carry any interest.
O Maturity proceeds not drawn are eligible to saving account interest
rate for a maximum period of two years.
O ccount is transferable from one post office to any Post office in
India free of cost.
O omination facility available.
O Rebate under section 80 C not admissible.
O Interest income is taxable, but no TDS
O Only scheme in Post office where monthly interest is payable.
O Most suitable scheme for senior citizens and for those who need
regular monthly income.
O Deposits are exempt from Wealth Tax




The Post OIIice Monthly Income Scheme, or PO MIS, is oIIered by Indian Post OIIices. A lump sum amount is
deposited with the post oIIice and monthly interest earned each month is paid out to you.

As the scheme is oIIered by post oIIices, it is backed by the government. Thus, the PO MIS is one oI the saIest
investments available.

Interest
The rate oI interest oIIered on PO MIS is 8 per annum (year). Interest is paid out every month but direct credit
to your bank account remains a problem as Post OIIices are not that technologically advanced in India, as such
one needs to go and collect the monthly income Irom the PO directly. However iI you have a savings account in
the same post oIIice then interest can be credited directly to your account. A 5 bonus is paid on maturity oI the
Iund, thereIore, the eIIective yield works out to 8.9 per year.

The interest earned is Iully taxable. There is no tax deducted at source (TDS). The investment in PO MIS is
exempt Irom wealth tax.

Who is eligible to invest?
Only individuals can invest in PO MIS. You can either open a single or joint account. A Non Resident Indian
(NRI) or Hindu Undivided Family (HUF) cannot open a PO MIS account.

Investment Limit
There is an upper limit on investment in a PO MIS scheme. You cannot invest more than Rs 4.5 Lakhs in a
single account. II you invest jointly (2/3 names), the limit is Rs 9 Lakhs. The minimum investment is Rs 1,500.

Duration
The tenure oI PO MIS is 6 years your investment is locked in Ior this time period.

umber of Accounts
Any number oI accounts can be opened, but the total investment cannot exceed the upper limit across all the
accounts.

omination
You can speciIy the nominee at the time oI opening the account, or at any time later.

Premature withdrawal, encashment, closure & Penalty
Premature withdrawal oI the invested amount is allowed aIter 1 year oI opening the account. II the account is
closed between 1 and 3 years oI opening, 2 oI the deposited amount is deducted as penalty. II it is closed aIter
3 years oI opening, 1 oI the deposited amount is charged as penalty. The bonus amount is IorIeited when you
close the account early.