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Post Office Monthly Income Scheme (MIS)


What is Post Office Monthly Income Scheme?
The Post Office Monthly Income Scheme is a type of small saving scheme
that is found in India. These schemes are provided by the Government of India
and are one of the most widely used investment options that are there in India.
.
Duration: P. O. Monthly Income Scheme has an maturity period of 6 years.

Mode of Investment: Single, Joint (Two or more), Minor with


parent/guardian and Minor who has attained age of 10

Investments: Min Amount Rs. 1,000/- and additional investment in multiples


of 1,000/- Max Amount Rs. 3,00,000/- (if Single) or Rs. 6,00,000/- (if held
jointly).

Returns: P. O. Monthly Income Scheme provides an interest rate of 8.0% per


annum which is paid monthly

Advantages:
· Depositor can have more than one account in the same post office or in any
other.
· Facility is there at the time of opening the account or anytime during the
tenure of the account.
· Is permitted if deposit is more than one year old. A deduction of 5% is
levied from the principal amount if withdrawn prematurely; the 10% bonus
is also denied.
· A bonus of 10% is paid at the time of maturity.
· A Passbook is issued at the time of opening the account. If the passbook is
lost, or it is mutilated, a duplicate is issued on payment of a charge.
· Tax benefits can be availed under section 80L. No Tax benefits are
provided under section 88.
· A good scheme for the retired to get a fixed income
· Benefit of a terminal bonus of 10% if the account is maintained till
maturiy.

1/16/2009 Post Office Monthly Income Scheme (MIS) Page 1 of 2


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· The depositor may open any number of accounts subject to the condition
that the total investment in all the accounts not exceed Rs.3.00 and Rs 6.00
lacs if the account are held by single and joint holders respectively.

Features:
Depositor can have more than one account in the same Post Office or in any
other. 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.
Minimum amount of investment is Rs 1,000/- and additional amount in
multiples of Rs 1,000/-.
Only one deposit is allowed in one account. The total amount that can be
invested in this scheme is Rs. 3.00 lacs and Rs. 6.00 lacs if the account is held
by single and joint holders respectively.
The deposit will be kept for a period of 6 years. The deposit can be withdrawn
before the maturity period subject to levy of penal interest.
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 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. The 10 % bonus is also not paid on
premature withdrawal.

1/16/2009 Post Office Monthly Income Scheme (MIS) Page 2 of 2

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