Post Office Monthly Income Scheme: In case you are looking for an investment option for your savings, then you can consider Post Office Monthly Income Scheme (MIS).

In open an account under this scheme, it is necessary to have a savings account in the post office. For this, you will have to provide ID proof. For this, you will have to provide an Aadhaar Card, Voter ID, DL or Passport, etc. Along with this, you will also need 2 passport size photos. 

The annual interest given to an account holder under Post Office Monthly Income Scheme is 6.6 percent. Interest shall be payable on completion of a month from the date of opening.

Under this scheme, one can open an account with a minimum deposit of Rs 1,000. A maximum of Rs 4.50 lakh can be deposited in a single account, and Rs 9 lakh in a joint account. Amount deposited should be in multiple of 100s.

Person willing to open an account under this scheme should be above 10 years of age. Account of an individual here will mature in five years from the date of opening.

In case of pre-mature closure of account :

  • No deposit shall be withdrawn before the expiry of one year from the date of depositing.
  • If account is closed after one year and before three years from the date of account opening, a deduction equal to two percent from the principal will be deducted and the remaining amount will be paid.
  • If the account is closed after three years and before five years from the date of account opening, a deduction equal to one percent from the principal will be deducted and remaining amount will be paid.
  • Account can be prematurely closed by submitting prescribed application form with pass book at the concerned Post Office.

Eligibility

Following individuals are eligible to avail the scheme-

  • A resident of India. NRIs are not eligible to invest in this scheme
  • Individual of or above the age of 10 year.

Who should invest?

  • Post Office Monthly Income Scheme is suitable for investors who are seeking fixed monthly income but are unwilling to take any risks in their investments. Thereby, it is more favourable for retired individuals or senior citizens who have landed into the no-more-paycheck zone
  • It is suitable for the investors seeking a one-time investment to serve the purpose of getting regular income to maintain the lifestyle
  • Investors willing to make long-term investments.

How to Open a Post Office Monthly Income Scheme Account?

To open an account under Post Office Monthly Income Scheme, follow the steps given below-

  • First, you must have a Post Office savings account. Open the same account if you do not have one
  • Get an application form from your Post Office or Click here to download POMIS Account application form
  • Fill and submit the form along with the copies of all the required documents at the post office. Note: You must carry the original documents for verification
  • Mention the Name, DOB and Mobile no. of the nominees (if any)
  • All the documents should be self-attested
  • Proceed to make initial deposits (Minimum Rs.1500/-) via cash or cheque.