Post Office Monthly Income Scheme (MIS) Account
Last Updated : Oct. 17, 2016, 11:38 a.m.
Indian Post Office has been touching the lives of the citizens in multiple ways be it by providing the social network to connect with people or to help them build capital. It offers attractive saving schemes, parking money in which earns good returns. The deposits are accepted under various saving schemes such as PPF, time deposits, RD etc. Also alike MIS scheme in banks, post office provides the facility of Monthly Income Scheme.
The customer can open the deposit with the minimum amount of INR 1,000. The maximum amount acceptable under the scheme is INR 4,50,000 in the case of individual accounts and INR 9,00,000 for joint accounts. An individual can invest up to INR 4,50,000 in MIS including his share in joint accounts. The customer opening the deposit gets the benefit of regular monthly income. The details of the scheme and interest rate are as follows:
POMIS Details
| Particular | Details |
|---|---|
| Tenure | 5 years |
| Minimum Amount | INR 1,000 |
| Maximum Amount | Up to INR 4.5 lakhs in a single account Up to INR 9 lakhs in a joint account |
Post Office MIS Interest Rate 2024
| Amount of Deposit | Rate of Interest |
|---|---|
| INR 1,000 - INR 9 lakhs | 6.6% per annum payable monthly |
Post Office Monthly Income Scheme Calculator
This calculator is specifically designed to assist the people in calculating the interest accrued on the deposit and amount of monthly interest that is to be credited to the depositor’s account. To know the monthly income, the customer has to insert the investment amount, tenure and interest rate in the calculator. After entering the relevant values in the calculator click on the submit button and the result will be displayed on the screen.
Eligibility Criteria
Any Indian Resident can open the account. The account holding categories are:
- Individual
- Joint
- Minor through the guardian
How to open the MIS Account
The account can be opened at any head or general post office. To open the account, the customer must have a savings account in the post office to link the monthly payout. To open the MIS account you will need the following documents.
Documentation Needed
To avail the benefit of the saving scheme, you will have to submit the following documents:
- Account-opening form, available at the post office
- Two passport-size photographs
- Address and Identity Proof (Aadhaar Card, Passport, PAN Card or declaration in Form 60 or 61 as per the Income Tax Act, 1961, Driving Licence, Voter ID Card)
The candidates are required to carry original identity proof for verification at the time of account opening.
Features & Benefits of POMIS Account
- Availability of nomination facility
- Attractive interest rate
- The account can be opened by the individuals and also a joint account can be opened by 2-3 adults.
- Minors are also eligible to open an account
- The account can be opened through cash or cheque payment
- You can also make the deposit in multiples of INR 1,000. The maximum investment amount for single accounts is INR 4,50,000 and for joint accounts is INR 9,00,000
- Joint account can convert into Single account and Vice Versa
- Multiple accounts opening facility.
Post Office MIS Premature Withdrawal Charges
There is a minimum lock-in period of 1 year in the POMIS. But if you are willing to withdraw funds before the maturity date then you will have to pay the following charges:-
- 2% of the deposit will deduct if you make a premature withdrawal before 3 years.
- 1% of the deposit will deduct if you make a premature withdrawal after 3 years.
Post Office Monthly Income Scheme for Senior Citizen
If you are a senior citizen and willing to make a monthly contribution to the Post Office scheme then you will have to invest a minimum of INR 1000 per month. You can make a maximum investment of up to INR 4.5 lacs per month under the same scheme and there are also other features of the Post Office MIS for senior citizens that you can explore below:-
- The minimum Investment Amount is INR 1000 per month.
- The maximum Investment Amount is INR 4.5 lacs per month.
- There is also a minimum lock-in period of 1 year.
- You will have to invest the money for 5 years in the same scheme.
POMIS for Child
It doesn’t matter if you have a girl or a boy child, you can make investments in the Post Office Monthly Income Scheme. But make sure that the age of your child is 10 years or above to invest. The minimum amount needed for investment is INR 1000 per month and it will be for a tenure of 5 years.
Frequently Asked Questions
1. How should I invest in the POMIS?
You can visit the nearest Post Office to invest in the Post Office MIS. But first, you will have to open a savings account with the Post office from which your monthly investment will be deposited to the scheme.
2. What is the Rate of Return in the Post Office MIS?
The rate of return in the POMIS is 6.60% per annum but it is payable every month. The return will be added to your deposits every month at the rate of 6.60% per annum.
3. How can I Calculate the return on my investment?
The interest rate on the POMIS is 6.60% per annum and you can calculate your return using this rate of interest. The tenure and the interest rate are fixed that are 5 years and 6.60% per annum. But the investment amount might vary. So, using these three pieces of information you can calculate the return on your investment.
4. Can I reinvest the accumulated funds?
Yes, you can reinvest the accumulated funds in other Post Office schemes. If you don’t withdraw the funds then you can earn interest on the accumulated funds on a simple interest basis for up to 2 years.
5. Is there any tax deduction on the accumulated funds?
No, there are no tax deductions on the accumulated funds. But the interest earned on the POMIS is taxable under the Income Tax Act.
6. Can I make a nominee in the Post Office Monthly Income Scheme?
Yes, you can nominate a person in the Post Office MIS. The nominee can legally claim for the accumulated funds in case of an unfortunate demise of the investor.
7. Can I Withdraw funds before the expiry of the tenure?
Yes, you can withdraw funds before the expiry of the tenure but there is a minimum lock-in period of 1 year during which withdrawals are not allowed. On the other hand, you will have to pay a penalty of 2% of the deposit if you are withdrawing money before 3 years and a penalty of 1% if you are withdrawing money after 3 years.
8. Can I transfer money from my Post office account?
Yes, you can easily transfer money from one post office account to another. You will have to visit the branch and make the money transfer from your account.
9. What is the minimum amount I can invest in POMIS?
INR 1000 is the minimum amount that you can invest in the Post Office Monthly Income Scheme. The investment amount remains the same in the case of POMIS for senior citizens and children.
10. What are the documents for Post Office MIS?
You will need the following documents to invest in the Post Office MIS:-
- Account Opening Form
- Passport Size Photographs
- Identity Proof