Are you looking for a safe and reliable source of fixed monthly income? If yes, the Post Office Monthly Income Scheme (MIS) could be your perfect financial companion. Offering guaranteed returns with zero risk, this scheme ensures that a fixed interest amount is deposited into your account every month. Whether you live in a village or a city but the Post Office MIS is a life-changing investment choice for millions of Indians.
Why Trust the Post Office for Investments?
The India Post office network spans across the length and breadth of the country—from remote villages to bustling metro cities. Over the years, the Post Office has evolved from a mail-sending institution to a trusted financial backbone, especially for small and medium investors in India.
Among its several savings schemes, the Post Office Monthly Income Scheme (MIS) stands out for its simplicity, safety, and guaranteed monthly returns.
How Does the Post Office MIS Work?
Under the MIS scheme, you invest a lump sum amount once, and in return, you receive fixed monthly interest in your account. As of now, the interest rate offered is 7.4% per annum, payable monthly. This means that without risking your capital, you receive a steady income every month—a great deal especially for retirees, homemakers, or those seeking a stable side income.
Monthly Returns You Can Expect Based on Investment
The table below shows how much monthly income you can earn depending on your investment amount:
| Investment Amount (₹) | Monthly Interest (₹) |
|---|---|
| 1,50,000 (Minimum) | ~925 |
| 5,00,000 | 3,083 |
| 7,00,000 | 4,317 |
| 9,00,000 (Max for Single) | 5,550 |
| 15,00,000 (Joint Account) | 9,320 |
Note: The interest is calculated at 7.4% per annum and is subject to revision every quarter by the Government of India.
Who Can Open a Post Office MIS Account?
To open an MIS account under this scheme, you must meet the following criteria:
- Must be a resident Indian citizen
- Age should be 18 years or above
- Both single and joint accounts are allowed
- For joint accounts, all account holders must be adults
This scheme is highly recommended for:
- Senior citizens
- Retired professionals
- Homemakers
- Risk-averse investors
- Anyone looking for regular, passive income
Minimum and Maximum Investment Limits
- Minimum investment: ₹1,500
- Maximum investment (Single Account): ₹9,00,000
- Maximum investment (Joint Account): ₹15,00,000
The interest amount is credited monthly and can be withdrawn or auto-credited to your savings account.
Account Features and Benefits
- Fixed Monthly Income: Receive interest every month on your investment.
- Low-Risk Option: Your capital is 100% secured under government protection.
- Nominee Facility: You can nominate someone to receive the money in case of your death.
- Transferable: The account can be transferred from one post office to another across India.
- No Market Dependency: Unlike mutual funds or stock markets, returns are not affected by economic fluctuations.
How to Open a Post Office MIS Account
Opening an MIS account is simple and can be done at any post office branch:
- Visit your nearest Post Office.
- Fill out the MIS account application form.
- Submit KYC documents: Aadhaar card, PAN card, passport-sized photographs, etc.
- Provide proof of address and identity.
- Deposit the investment amount via cash or cheque.
- Choose a nominee (optional but recommended).
Once the process is complete, your MIS account will be active and you’ll start receiving interest from the next month.
Important Rules to Remember
- The interest income is taxable but no TDS (Tax Deducted at Source) is deducted.
- The lock-in period is 5 years.
- You can withdraw your investment prematurely after 1 year, but with a penalty:
- 1-3 years: 2% penalty
- After 3 years: 1% penalty
- After 5 years, you can either withdraw the entire amount or reinvest.
Should You Invest in MIS? Here’s Why You Should Consider It
Pros:
- Government-backed and secure
- Ideal for low-risk investors
- Regular monthly income
- Simple account management
- Suitable for retirees or those with no other steady income
Cons:
- Returns are moderate compared to market-linked schemes
- No growth on capital (only interest earnings)
If you’re someone who values stability and wants a guaranteed return without market volatility, this is a solid choice.
FAQ
Q1. Can I open multiple MIS accounts?
Yes, you can open multiple MIS accounts, but the total investment should not exceed ₹9 lakh in a single name and ₹15 lakh jointly.
Q2. Is TDS applicable on the interest earned?
No, TDS is not deducted. However, the interest is taxable as per your income tax slab.
Q3. Can I withdraw money before 5 years?
Yes, you can withdraw after 1 year with a penalty.
Q4. Can I transfer my MIS account to another post office?
Yes, account transfer across India is permitted.
Q5. Is the MIS scheme safe for senior citizens?
Absolutely. It is considered one of the safest investment schemes for senior citizens looking for monthly income.
If you’re seeking peace of mind with predictable earnings, it’s time to visit your nearest post office and invest smartly in the MIS scheme.