MIS Scheme Post Office, Numerous plans offering fixed returns on investment are available through the Post Office Depository Service. The sovereign guarantee backs each of these initiatives, indicating that the government is in favour of this investment path. As a result, these schemes are safer investments than many fixed-income options and equity shares.
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What is the Post Office Monthly Income Scheme
With an interest rate of 7.4%, the Post Office Monthly Income Scheme is one of the highest-earning plans, along with the Post Office Savings Account, Post Office Recurring Deposit, and Post Office Time Deposit. As the name suggests, this program pays interest on a monthly basis. The Ministry of Finance recognises and approves this program, just like it does other post office programs.
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Features of POMIS
- Lock-in Period: You cannot take out the money put in a Monthly Income Scheme account that you opened with the post office before five years have passed.
- Maximum Limit: The scheme allows you to invest up to Rs. 9 lakh. The total of all your contributions cannot be more than Rs. 9 lakhs, even if you have the scheme in several post offices.
- Additionally, you can form a joint account with two or three persons, in which you can invest up to Rs 15 lakhs in total.
- Transferrable: You have the option to move your POMIS account to a convenient post office if you are moving to a different city in India. Your investment in the Post Office Monthly Income Scheme Such a post office will receive the corpus and interest disbursement.
- Joint account: Under this plan, a maximum of three people may open a joint account. Every investor in a joint account has equal control over the account. The single limit is Rs. 9 lakhs, and the maximum for joint accounts is Rs. 15 lakhs.
- Minor account: Your child’s name may be used to open a POMIS minor account. Minors must be older than ten to participate in the Post Office Monthly Income Scheme. After 18 years of maturity, he or she is able to withdraw the money.
MIS Scheme Post Office
- Residential eligibility: All Indian citizens are able to open a POMIS account, but non-resident Indians (NRIs) are not.
- Auto-withdrawal: Using PDCs or ECS, you can choose to automatically transfer the monthly interest amount on your investment to your savings account. The interest amount can be transferred to any other CBS-centric savings account if the POMIS account is at a CBS Post Office.
- Penalty: Depending on when you redeem, you may be assessed a penalty if you want to take your investment corpus out before the lock-in period is over.
- Investment amount: A minimum of Rs. 1000 and multiples of Rs. 1000 are required to open the account.
- Tax benefits: The interest amount is not subject to any Tax Deducted at Source (TDS), but it is also not eligible for any Section 80C tax benefits.
The following table displays the maximum investment limit for the Post Office Monthly Income Scheme.
| Account Type | Maximum Limit |
| Single Account | Rs. 9 Lakhs |
| Joint Account | Rs. 15 Lakhs |
Documentation Required
- Identity Proof: A copy of a government-issued document, such as an Aadhaar, driver’s license, voter ID card, or passport.
- Proof of address: current utility bills or official identification.
- Pictures: passport-sized pictures
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Current Interest Rates on Post Office Monthly Income Scheme
The Central Government of India and the Finance Ministry set the interest rate for the Post Office Monthly Income Scheme. The returns produced by government bonds with comparable maturities are frequently used to modify interest rates every three months.
The following table includes the current and previous interest rates-
| Time Interval | POMIS Interest Rate (Per Annum) |
| From 1st January 2024 | 7.40% |
| 1st October 2023 – 31st December 2023 | 7.40% |
| 1st April 2023 – 30th June 2023 | 7.40% |
| 1st January 2023 – 31st March 2023 | 7.10% |
| 1st October 2022 – 31st December 2022 | 7.10% |
| 1st April 2020 – 30th September 2020 | 6.60% |
| 1st January 2020 – 31st March 2020 | 7.60% |
| 1st October 2019 – 31st December 2019 | 7.60% |
| 1st July 2019 – 30th September 2019 | 7.60% |
| 1st January 2019 – 31st March 2019 | 7.70% |
| 1st October 2018 – 31st December 2018 | 7.70% |
| 1st January 2018 – 30th September 2018 | 7.30% |
How to Open a POMIS Account
It’s simple and hassle-free to open a Post Office Monthly Income Scheme Account (MIS). However, you must have a Post Office Savings Account in order to invest in the scheme. You can pursue the POMIS Account Opening Procedure after creating a savings account with the Post Office if you didn’t previously have one.
- Get a POMIS Form from the post office that is closest to you.
- Together with the form, send in two passport-sized photos and a photocopy of your identification and proof of address.
- For verification purposes, send in the original copies of the aforementioned documents.
- Gather the beneficiaries’ or witnesses’ signatures.
- The money could be invested using a dated cheque. The date on the cheque will match the account’s opening date. The interest earned on the investment will be distributed one month following the opening date.
Additionally, the receiver may be named after registering for an account under India’s Post Office Monthly Income Scheme.
Eligibility Criteria to Open a POMIS Account
The following are the requirements to be eligible for the Post Office MIS Scheme:
- Only Indian residents are eligible to open a POMIS account.
- Indians who are not residents are exempt from this system.
- Anyone above the age of eighteen may open an account.
- A minor that is ten years of age or older may have an account opened on their behalf. Children will have access to the money after they turn eighteen.
- A minor must apply to have the account converted into his name after he reaches the age of majority.
Benefits of Post Office Monthly Income Scheme (MIS)
Purchasing POMIS has two main advantages. Many investors with a limited tolerance for risk choose it since it is a government-guaranteed investment plan that is not correlated with the market.
These advantages are
- Consistent Returns: Regardless of market swings, you would receive a consistent monthly income from your investment corpus. The post office sets an interest rate of 7.40 per cent per annum.
- Reinvestment: You may choose to put the interest you’ve earned into securities that offer large profits, such as equities funds or shares, but doing so comes with a lot more risk.
- In contrast to equity shares and funds, hybrid funds—which combine fixed income and equity funds—are a good way to participate in the stock market, build a diversified investment portfolio, generate relatively greater returns, and assume less risk.
Post Office Monthly Income Scheme Vs other Saving Schemes of the Post Office
| Savings Scheme | Rate of Interest | TDS |
| Post Office Monthly Income Scheme | 7.4% | No TDS is deducted |
| Post Office Recurring Deposit | 6.7% | No TDS is deducted |
| Post Office Time Deposit (1,2,3 years) | 6.9%, 7%, 7.10% respectively | No TDS is deducted |
| Post Office Time Deposit (5 years) | 7.50% | TDS is deducted |
| National Savings Certificate | 7.7% | TDS is deducted |
| Senior Citizen Saving Scheme | 8.2% | TDS is deducted |
| Public Provident Fund | 7.10% | TDS is deducted |
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Faq’s
Q. Is it possible to convert a POMIS single account to a joint account?
Ans: It is changeable, yes. It is also possible to go from a joint to a single account.
Q. In a Post Office MIS plan, what is the bare minimum balance I have to keep?
Ans: A balance of at least Rs. 1000 must be kept up to date.
Q. How might the money of a deceased depositor be obtained by a nominee or legal heir?
Ans: The nominee can pick up the maturity amount to which they are entitled by presenting the death certificate. The legal heir may claim the estate in the event that there is no nominee.
Q. In the event of a shared account, what portion does each account holder receive?
Ans: A 50/50 split will be used for the distribution. This implies that each depositor will have an equal portion in a joint account.
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