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    Post Office Monthly Income Scheme

     and 2 other FDs
    Institution Name
    Deposit Amount Range
    Tenure Range
    Interest Rate
    Up to ₹1Cr
    1 Year to 5 Years
    6.8% - 7.6% Quarterly compounding
    Response Time Within 30 minutes
    Good to Know
    Up to ₹25L
    1 Year to 5 Years
    7.49% - 8.19% Monthly compounding
    Response Time Within 30 minutes
    Good to Know
    Up to ₹25L
    1 Year to 5 Years
    7.75% - 8.5% Monthly compounding
    Response Time Within 30 minutes
    Good to Know

    Post Office Monthly Income Scheme is Rated as "Excellent!" by 13 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service



    Overview on Post Office Monthly Income Scheme

    One of the benefits of having numerous schemes available for individuals to invest in is that customers have the option to pick one that is most suited to their income and other requirements. Generally, most individuals would prefer opting for those investment schemes that are relatively risk free, while offering guaranteed returns. Although investments that are not very risky by nature do not offer high returns, whatever offered is substantial enough for applicants to invest high amounts in.

    One such popular scheme that is chosen quite often is the Post Office MIS or Monthly Income Scheme. Investors are rewarded with assured returns every month on their deposit. This is one of the most beneficial investment options that can be procured as it offers returns, ensures that the capital invested is intact and also provides a fixed income every month. This scheme is provided by the Indian Postal Service and is administered by the Finance Ministry of India, making this one of the most secure options to invest in.

    Features and Benefits of Post Office MIS

    This scheme comes with a number of advantages and features. These are listed below:

    • The period of maturity for this scheme is 5 years, as of 1 December 2011.
    • This account can be opened by both individuals and also in the form of a joint account. This joint account can be opened by two- three adults.
    • The minimum amount that should be deposited into this account is Rs.1,500 for both single as well as joint account holders.
    • In case of a joint account, all holders will have equal share. Applicants can also convert their single account to a joint account, or even vice versa.
    • Applicants can open an account by cheque or cash. In case a cheque is being given, the opening date of the account will be the date of realization of cheque in the Government account.
    • Customers have the option to nominate others to their account both at the time of opening the account and also once they open the account.
    • In case customers have shifted their residence or find the current post office branch inconvenient, they have the option to transfer their account from one branch of the post office to other branches.
    • Customers can open multiple accounts at any post office. However, this will be subject to the highest amount of investment limit by the addition of balance amount in all the accounts.
    • One of the most unique advantages of this scheme is that, minors can also open a Post Office Monthly Income Scheme account. However, the minor will have to be either 10 years of age, or older.
    • Whenever the minor reaches the age of 18, he/she will have to apply for a conversion of his/her Post Office Monthly Income Scheme account.
    • Through auto-credit, interest can be automatically credited to the savings account of the individual at the same post office, through electronic clearing system or post-dated cheques. In case the said post office with Monthly Scheme Income account has availed the facility of Core Banking Solution (CBS), interest can be credited to the savings account at the CBS post office, every month.

    Interest Rates for PO Monthly Income Scheme

    As of 1 April, 2016, the revised rate of interest applicable on the Post Office Monthly Income Scheme is 7.80% per year, and is payable monthly.

    Eligibility Criteria for Post Office Monthly Income Scheme

    The main eligibility criteria that is applicable for the Post Office Monthly Income Scheme is that, the applicant must be a resident of India.

    Documents Required for Post Office MIS

    The main documents required are -

    • Proof of address such as Voter ID, Utility bills, Aadhaar Card, Passport
    • Proof of Identity such as PAN Card, Aadhaar Card, Passport, Passbook
    • Passport size photos

    Applicants must also carry their original documents along with extra copies of the same.

    Premature Withdrawal for Post Office Monthly Income Scheme

    In order to withdraw money, an application must be submitted for the same. The period of maturity for a Post Office Monthly Income Scheme is 5 years. This interest amount can be encashed prematurely as well, but only after a period of one year.

    In case customers wish to encash their interest after a year of availing the scheme, but before 3 years then 2% will be deducted from the deposit. In case, customers wish to withdraw after a period of 3 years but before 5 years, then a deduction of 1% will be applicable.

    Frequently Asked Questions (FAQs) on India Post MIS

    1. Is there a bonus amount payable at maturity?

      No, there is no bonus that is payable on deposits that have been made on or after 1 December, 2011. However, for those schemes that were opened before, a 5% bonus was payable on the principal amount.

    2. Are tax rebates offered on the Post Office Monthly Income Scheme?

      No, there are no tax rebates offered on the Monthly Income Scheme.

    3. What is the maximum amount that can be invested into the Monthly Income Scheme?
      Account Type Maximum Amount Allowed
      Single Rs.4,50,000
      Joint Rs.9,00,000
      • Applicants must note that, the maximum amount that is allowed is calculated on an individual basis, even if the customer holds a joint account.
      • For example, if Mr. A has invested Rs.2,00,000 into his single account. He also has a joint account with his wife and deposits Rs.5,00,000. Therefore, Mr. A cannot invest anymore into the Monthly Income Scheme as he has reached the limit of Rs.4,50,000 per person. However, his wife can invest another Rs.2,50,000 if she chooses to, as the amount in the joint account is split equally between all the account holders.
    4. What happens if money is not withdrawn from the Monthly Income Scheme account even after 5 years?

      In case applicants have not withdrawn the money from their Monthly Income Scheme account even after the maturity period of 5 years, they may receive the applicable interest for a period of two years but none after that, resulting in the account becoming idle. Further information regarding this can be sought at the nearest post office.

    5. What is the maximum amount that can be invested into this scheme by a minor?

      An account operated by minor is only allowed a maximum of Rs.3,00,000 as deposit.

    6. Is the facility for nomination available for the Monthly Income Scheme?

      Yes, applicants have the option of choosing a nominee for their account.

    7. What will happen to the account in case the depositor expires?

      In case the depositor expires prior to maturity of the account, his/her nominee or heir must close the account. The amount that has been deposited along with applicable interest (until the month preceding the refund date) will be provided to the nominee/heir.

    8. Updated on 26 September ‘16

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  • PO Monthly Income Scheme Reviews

    • Post Office Fixed Deposit
      "Post office FD"
      0.5 4.0/5 "Great!"
      Post Fixed Deposit is good, when compared with bank deposit this is the best one. The reason why because if we can with draw from PO any time after one year no charges however when it comes to bank we have to hold up to 5 years,. No charges even if we break it after 1 year they will calculate the interest earned for one year and they will credit the amount. Most of the people are not aware about post office also they dont have online facility and these are all the drawback of Post office.
      Was this review helpful? 40
      , hyderabad
      Reviewed on Dec 29, 2016
    • Post Office Fixed Deposit
      "No waste of time"
      0.5 5.0/5 "Blown Away!"
      Too quick , too easy to open a FD at POST OFFICE. It takes hardly 10 minutes to open this FD. All I had to do is fill the form and they will courier my details to my mailing address. Its a one time visit there is no need for me to visit Post office again for the same purpose. Best of all, they are offering the best interest rate in the market.
      Was this review helpful? 31
      , bangalore
      Reviewed on Nov 25, 2016
    • Post Office Fixed Deposit
      "Not a good"
      0.5 2.0/5 "Expected more"
      I have got the fixed deposit account with the India post office. Interest rate is around 7.5% per annum and its the annual compounding and the total tenure is around twenty years of time and I have maintaining this account for my children future. Customer service is not a responsive one like its very difficult to handle.
      Was this review helpful? 59
      , mumbai
      Reviewed on Apr 26, 2016
    • Post Office Fixed Deposit
      "Excellent !!!!"
      0.5 4.0/5 "Great!"
      Interest rate offered by India post is approximately 6%-7.5% for the fixed deposit for the minimum lock in period of seven years . After five years we will get the lump sum amount. The amount to start the plan is Rs.1000. There is no activation or any maintenance fee.
      Was this review helpful? 33
      , hyderabad
      Reviewed on Mar 19, 2016
    • Post Office Fixed Deposit
      "Interest rate is good comparing to the banks..."
      0.5 4.0/5 "Great!"
      Only reason to go with India Post Office for fixed deposit is the rate as comparatively they are high as the percentage is 8.7%. Very well we can drop the deposit in middle but no idea about the penalty. Very soon they are going to introduce savings account to the people. If we speak about customer service they lack.
      Was this review helpful? 65
      , hyderabad
      Reviewed on Mar 02, 2016
    • Post Office Fixed Deposit
      "Best interest ...."
      0.5 4.0/5 "Great!"
      India post office is the best for fixed account. They are providing 8.4% interest which was very competitive. Minimum maintenance also good in India post office which was very convenient just 50rs. I would suggest them to provide more facilities to their senior citizens.
      Was this review helpful? 72
      , bangalore
      Reviewed on Jan 15, 2016
    • Post Office Fixed Deposit
      0.5 5.0/5 "Blown Away!"
      I was infact suggested by one of the friend to this India Post office for fixed deposit. In comparison to banks the rate is little low in India Post office but it is a secured place to put our money. Also it very easy to send parcels to abroad as being a loyal customer of India post office.
      Was this review helpful? 55
      , bangalore
      Reviewed on Dec 21, 2015
    • Post Office Fixed Deposit
      "Secured one"
      0.5 4.0/5 "Great!"
      Indian Post Office it is a Government service and I would like to give 4 for Post office. It is very much secured . I am holding this FD for the past one year. The rate of interest offered by PO was 8.5%. I feel that investing at PO is very secured . I did not find any difficulty personally when I deposit there and I had opened this FD.
      Was this review helpful? 53
      , bangalore
      Reviewed on Dec 12, 2015
    • Post Office Fixed Deposit
      "Good one"
      0.5 5.0/5 "Blown Away!"
      Post office fixed deposit that a good one. I am holding this FD since 2011 for the past 5 years. Monthly I am depositing rs 550 which was a period of 20 years . The major benefit is I use this for income purpose and everything is fine.
      Was this review helpful? 41
      , coimbatore
      Reviewed on Dec 08, 2015
    • Post Office Fixed Deposit
      "Not great.."
      0.5 4.0/5 "Great!"
      Friend is working in India Post Office and through him I opened the fixed deposit. Nationalized banks and offices are not that great in customer service and they are not that approachable. I have easily processed because of my friend but it will not happen to normal customers. Employees are not bothered to help the public.
      Was this review helpful? 46
      , tiruchirapalli
      Reviewed on Nov 24, 2015
    • Post Office Fixed Deposit
      "Gives best rate "
      0.5 4.5/5 "Excellent!"
      India post is giving 9% interest rate for the fixed deposit for the minimum lock in period of 5 year. Minimum amount starts with Rs.500. For the pass book they charge Rs.200. The only issue we have to wait for long time to get deposit the amount.
      Was this review helpful? 59
      , secunderabad
      Reviewed on Nov 07, 2015
    • Post Office Fixed Deposit
      "Can increase the rate.."
      0.5 4.0/5 "Great!"
      To save the income tax I mainly opened the fixed deposit from India Post Office. I took it for 5 years of tenure and you get 9% of the interest rate for one year. The rate will accumulates like every year. Offers are good but they are slow as they are government sector.
      Was this review helpful? 45
      , bangalore
      Reviewed on Nov 06, 2015
    • Post Office Fixed Deposit
      0.5 5.0/5 "Blown Away!"
      Specifically for tax deduction I have chosen India Post office fixed deposit and benefits are fine. Post seven years the deposited amount would be doubled. While opening I was told that I can withdraw the amount in midst of the tenure and that is not complete amount as can take out 70%. In comparison to national savings scheme rate of interest is fine in India Post Office.
      Was this review helpful? 108
      , bangalore
      Reviewed on Sep 03, 2015
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