Post Office Monthly Income Scheme (MIS): Interest Rate, Investment Limits And More

Post Office Monthly Income Scheme (MIS): Interest Rate, Investment Limits And More

India Post, the operator of postal system in the country, also offers nine types of savings schemes with different interest rates. Monthly income scheme (MIS) account, one such savings scheme offered by the India Post, provides interest at the rate of 7.6 per cent for the current quarter, which is payable monthly, according to India Post’s website – A Monthly Income Scheme (MIS) account can be opened through cheque or cash. In case of cheque, the date of realisation of cheque in government’s account is the date of opening of account.

Here are 10 things to know about Post office Monthly Income Scheme (MIS) account:

  1. In a Monthly Income Scheme (MIS) account, the maximum investment limit is Rs. 4.5 lakh in a single account and Rs. 9 lakh in a joint account, according to India Post. The investment must be done in multiples of Rs. 100.
  2. The maturity period of MIS account is 5 years.
  3. Joint account can be opened by two or three adults, where all joint account holders must have equal share in each joint account, according to India Post.
  4. Single account can be converted into joint and vice versa.
  5. Investors can open any number of MIS accounts in any post office subject to maximum investment limit by adding balance in all accounts, according to India Post.
  6. Nomination facility is available at the time of opening and also after opening of MIS account.
  7. Monthly Income Scheme (MIS) account can be transferred from one post office to another.
  8. The account can be prematurely encashed after one year but before three years at the discount of 2 per cent of the deposit and after three years at the discount of 1 per cent of the deposit. Discount means deduction from the deposit.
  9. Interest can be drawn through auto credit into savings account standing at same post office, through post dated cheques (PDCs) or electronic clerance service (ECS). In case of MIS account standing at Core Banking Solution (CBS) post offices, monthly interest can be credited into savings account standing at any CBS post offices.
  10. A bonus of 5 per cent on principal amount is admissible on maturity in respect of MIS accounts opened on or after December 8, 2007 and up to November 30, 2011. No bonus is payable on the deposits made on or after December 1, 2011, according to India Post.


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