New Delhi: The Post Office Monthly Income Scheme (MIS) is an investment option with low risk that provides a consistent income. This scheme pays interest monthly and is suitable for those seeking regular or additional income from their investments. It’s widely favoured in India due to its government backing, ensuring the safety of invested funds until maturity. With the MIS, deposited money is secure from market risks.
Individuals can invest up to Rs 4.5 lakh, while joint investors can invest up to Rs 9 lakh. Once you start investing, payouts begin from the first month, credited to you at the end of each subsequent month.
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Who Can Open An MIS Account?
- Single adults
- Joint accounts with up to 3 adults (Joint A or Joint B)
- Guardians on behalf of minors or individuals of unsound mind
- Minors above 10 years old in their name
Key Features of the Post Office Monthly Income Scheme (MIS):
Low risk: Offers guaranteed returns with almost zero risk.
Flexible investment: You can start with just Rs 1,000 and watch your investment grow over time.
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5-year lock-in period: Funds are locked in for 5 years, but you can reinvest in the scheme after maturity.
Tax implications: Investments aren’t eligible for tax benefits under section 80C, and the income is taxable, but there’s no TDS deduction.
Maximum investment limits: Up to INR 4.5 lakh in a single account and INR 9 lakh in a joint account.
Individual investment limit: Up to INR 4.5 lakh in MIS, including the share in joint accounts. Each joint holder has an equal share in the account.
Note: Investors receive payouts from their investment starting from the first month, credited at the end of each month.
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How To Open Post Office MIS Account:
- Visit your nearest Post Office and request a POMIS application form.
- Fill in all the required details on the application form.
- Submit the duly filled form along with photocopies of your ID and residential proofs, as well as 2 passport-size photos, at the Post Office. Ensure you bring the originals for verification purposes.
- Obtain the signatures of your witness or nominee(s) on the form, if required.
- Make the initial deposit using either cash or a cheque. If using a post-dated cheque, note that the date on the cheque will serve as the account opening date.
- Once the processing is complete, the Post Office executive will provide you with the details of your newly opened POMIS account.
