The Post Office Monthly Income Scheme (PO MIS) is a small investment and savings scheme.

Main Features/ Rules

  • This scheme provides a regular monthly income to the depositors and has a term of 6 years.
  • Minimum amount of investment is Rs.1500/-, and maximum amount in case of single account is Rs.4,50,000/-, and in case of joint account is Rs.9,00,000/-.
  • Interest rate is 8% p.a. payable monthly with a bonus of 5% payable on maturity.
  • Nomination facility is available.
  • Rebate under section 80 C is NOT admissible.
  • Most suitable scheme for senior citizens and for those who need regular monthly income.
  • Deposits are exempt from Wealth Tax.
  • No TDS
  • Premature withdrawal / encashment / closure and Penalty – Premature withdrawal of the invested amount is allowed after 1 year of opening the account.
    1. If the account is closed between 1 and 3 years of opening, 2% of the deposited amount is deducted as penalty.
    2. If it is closed after 3 years of opening, 1% of the deposited amount is charged as penalty.
    3. The bonus amount is forfeited when you close the account early.