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Post Office Monthly Income Scheme (MIS)
(Updated as per new rules from 01-Dec-2011)

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P. O. Monthly Income Scheme provides an interest rate of 8.2% per annum which is paid monthly.

Investment Limitation

Min Amount        Rs. 1,500/- and additional investment in multiples of 1,500/-

Max Amount       Rs. 4,50,000/- (if Single) or Rs. 9,00,000/- (if held Jointly).

Scheme Availability

All through the year.

Mode of Operation

  • Single
  • Joint (Two or more)
  • Minor with parent/guardian
  • Minor who has attained age of 10

Depositor can have more than one account in the same post office or in any other.


Tenure of Investment

P. O. Monthly Income Scheme has an maturity period of 5 years.


Facility is there at the time of opening the account or anytime during the tenure of the account.


Premature Encashment

Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.) A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07


No Bonus on Maturity w.e.f.  01.12.2011 .

Lost of Passbook

A Passbook is issued at the time of opening the account. If the passbook is lost, or it is is mutilated, a duplicate is issued on payment of a charge.

Tax Benefits

Tax benefits can be availed under section 80L. No Tax benefits are provided under section 88.

Tips for Investing

  • A good scheme for the retired to get a fixed income




Mode of Opening an Account

The depositor may open any number of accounts subject to the condition that the total investment in all the accounts not exceed Rs 4.5 and Rs 9 lacs if the account are held by single and joint holders respectively.

Mode of Operation

  • Single
  • Jointly
  • Minor with a guardian
  • Minor whose age is 10 years

Depositor can have more than one account in the same Post Office or in any other.

Mode of Payment

  • Cash
  • Cheque or DD
  • Or through direct debit instruction, if the instrument has to be purchased from the savings account at the Post Office.


Nomination can be made at the time of opening the account or at any time during the tenure of the account but before its closure.

Investment Limit

Minimum amount of investment is Rs 1,000/- and additional amount in multiples of Rs 1,500/-.
Only one deposit is allowed in one account. The total amount that can be invested in this scheme is Rs. 4.5 lacs and Rs. 9 lacs if the account is held by single and joint holders respectively.


The deposit will be kept for a period of 5 years. The deposit can be withdrawn before the maturity period subject to levy of penal interest.

Interest Payment

Interest is paid monthly to the depositor after one month from the date of opening. Additional interest is not paid to the depositor if the monthly interest is not claimed on due dates. If the depositor has a savings account in the Post Office the interest amount is directly credited to the account on the due dates.

Premature Repayment

Premature withdrawal is permitted if the deposit has run for more than a year from the date of opening. A percentage of to 5% from the principal is deducted at the time of withdrawal.

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