• Post Office Monthly Income Scheme - India Post

    The Post Office Monthly Income Scheme (MIS) is a type of term deposit account offered by India Post. The MIS scheme pays interest each month and is suited for those who seek regular or supplementary income from their investments. This is a type of investment plan that is offered by the Department of Posts (DoP), also known as India Post. Those who would like to invest in Post Office monthly income schemes can do so at any post office in their respective locality. As of 1 May 2021, the interest rate offered on the Post Office Monthly Income Scheme is 6.6% p.a

    Post Office Monthly Income Scheme Interest Rates

    Given below are the revised interest rates offered on Post Office MIS schemes with effect from 1st May 2021

    Tenure Regular rate (per annum ) Senior Citizen Rate (per annum )
    5 years 6.6% NA
    • The interest rate that is paid on the Post Office Monthly Income Scheme is 6.6% p.a. for an investment period of 5 years.
    • The rate of interest paid is not applicable to senior citizens and those who belong to this category can invest in the Senior Citizens Savings Scheme (SCSS).

    Features of Post Office Monthly Income Scheme

    • Low risk: Safe investment that offers guaranteed returns after the maturity period. The risk-level in this scheme is almost 0%.
    • 5-year lock-in: Comes with a mandatory lock-in period of 5 years. Investors can also re-invest in the same scheme after the maturity period if they wish to.
    • Premature withdrawal: Can be made after paying a penalty fee.
    • Regular Payouts: Regular payment of interest makes this scheme an attractive investment option for those looking to earn income at frequent periods of time.

    Eligibility criteria & Documents Required

    Who can open an MIS account?
    • Resident Indians
    • Minor aged 10 and above
    Documents required
    • Account opening form
    • Passport size photos
    • Identity and address proof - PAN, Aadhaar, Driving Licence, Passport, Voter ID

    How to open Post office MIS account

    To open a monthly income scheme, you will have to pay a visit to the nearest post office. Ask for the application form, fill in details and submit identity and address proof documents. There is no online facility to open this type of account yet.

    The post office savings account application form can be downloaded from here - https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/SB-3.pdf

    Given below is the step-by-step process involved in opening a Post Office Monthly Income Scheme:

    • Step 1: Go to the nearest post office and first open a savings account.
    • Step 2: Ask for an application form and fill in required details.
    • Step 3: Submit a photocopy of identity and address proof documents along with passport size photos.
    • Step 4: Choose a nominee and deposit cash or a cheque.

    Difference between MIS and other monthly income plans

    Post Office MIS scheme Mutual funds Fixed deposit
    The interest rate offered is fixed at a given rate. The rate of return varies and depends on market conditions. The rate of interest paid is fixed.
    Guaranteed returns. Returns are relative and not always guaranteed. Assured returns.
    No TDS. No TDS. TDS applicable.
    Investment limit applicable. No limit. No limit.
    Lesser risk. Moderate to high risk. Nil risk.
    Premature withdrawal with penalty. Minimum lock-in period of 3 years for SIP. Premature withdrawal subject to penalty.

    Consequences of Premature Withdrawal of the Scheme

    • A discount of 2% is applicable for premature withdrawal between 12 months to 36 months of the opening of account.
    • A discount of 1% is applicable for premature withdrawal between 36 months to 60 months of the opening of account.

    How Does it Work- POMIS Calculation Work?

    POMIS Monthly Interest = Amount Invested X Annual Interest Rate/12

    • For example, Amount Invested is Rs.5 lakh.
    • Annual Interest Rate is 6.6% p.a.
    • Tenure is 5 years.
    • The monthly interest earned will be Rs.2,750. The total interest earned for a tenure of 5 years will be Rs.1.65 lakh.

    FAQs on Post Office Monthly Income Scheme

    1. Is nomination facility available?


    2. Can a single account be converted into a joint account?

      Yes. The vice-versa can also be done.

    3. Will the depositor be eligible to receive a bonus?

      India Post has stopped making bonus payments with effect from 2011.

    4. What is the minimum balance that needs to be maintained in an MIS account?


    5. What is the minimum period for which a deposit should be held before making a premature withdrawal?

      12 months.

    6. What are the other types of accounts that can be opened at India Post?
      • Post Office Savings Account
      • 5-Year Post Office Recurring Deposit Account
      • Post Office Time Deposit Account
      • Senior Citizens Savings Scheme
      • 15-year Public Provident Fund Account
      • National Savings Certificate
      • Kisan Vikas Patra
      • Sukanya Samriddhi Accounts
    7. How can a nominee or legal heir claim the money of the deceased deposit holder?

      The nominee can furnish the death certificate and claim the maturity amount that is entitled to him/her. In case there is no nominee, the legal heir can make a claim on the same.

    8. In case of joint accounts, what will be the share that is given out to each account holder?

      The sharing will be made on a 50:50 basis. This means that each depositor in a joint account will get an equal share.

    9. Is it possible to transfer the account from one post office to another?

      Yes. This can be done.

    10. What is the penalty rate for premature withdrawal?

      It is at the rate of 2%.

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    PO Monthly Income Scheme Reviews

    • Post Office
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I was having my savings account from Post office hence i have invested my money into Post office Fixed deposit scheme. I have invested the money of Rs. 25000. There is a lockin period of 10 years. I have invested the money in the year of 2011. Post office service is proper. Overall, I'm happy about the services.
      Was this review helpful? 6
      , chennai
      Reviewed on Feb 25, 2020
    • Post Office
      Post Office
      "Good Service"
      0.5 4.0/5 "Great!"
      Interest rate is very low in Indian post office Fixed deposit scheme because they are providing only 8.5%. I have chosen this office because of the child benefits. I have invested the money of Rs. 1.5 years. Its 3 years lock in period. Overall, I'm satisfied with the service provided by post office employees.
      Was this review helpful? 79
      , parvathipuram
      Reviewed on Dec 03, 2019
    • Post Office
      "Safety deposit"
      0.5 5.0/5 "Blown Away!"
      I have paid the money of Rs. 4.5 lakhs as a fixed deposit in the Indian post office. For the safety purpose, i have chosen the post office account. They are offering me a interest rate of 7.9%. There is a lockin period of 5 years. If i withdraw the money in 1 year, they will reduce the interest rate of 2% and after 3 years, its 1%.
      Was this review helpful? 150
      , jaipur
      Reviewed on Nov 08, 2019
    • Post Office
      "Good for future"
      0.5 3.0/5 "Satisfactory"
      In post office rate of interest is higher for the fixed deposit when compared to the bank, I invested Rs. 5000 on monthly basis its comes in a year Rs. 60,000 after 5 years I got Rs. 3.75,000 I got Rs. 75,000 extra. The service is not comfortable if we have any relative who working there it would supportive or else difficult.
      Was this review helpful? 105
      , burdwan
      Reviewed on Aug 09, 2019
    • Post Office
      "Safe and Secured"
      0.5 4.0/5 "Great!"
      My Post office branch is located in own campus hence there is no queue. I opened the fixed deposit, I made one time investment for five years its has tax exemption. They are providing 7% of interest for per annum. I believe it has online access as well.
      Was this review helpful? 64
      , bangalore
      Reviewed on Aug 01, 2019
    • Post Office
      "Service needs to be improved"
      0.5 3.0/5 "Satisfactory"
      I do not use Post office service often because its inconvenient and they recently started the debit card service or else we need to visit to the branch for the withdrawing the money in the queue. But Post office fixed deposit interest has more interest, my mother is taking care of it.
      Was this review helpful? 41
      , gurgaon
      Reviewed on Jul 13, 2019
    • Post Office
      "Good Experience"
      0.5 4.0/5 "Great!"
      My fixed deposit got matured with Post office, the interest was nominal. The staff are good they gave me good service. There was no online option hence I need to visit for depositing the cash. I invested for five years for fixed deposit, my experience was good.
      Was this review helpful? 55
      , chennai
      Reviewed on Apr 03, 2019
    • Post Office
      "Good investment plan"
      0.5 5.0/5 "Blown Away!"
      I have started investing in the fixed deposit almost more than 5 years. I have invested a variable amount in different times. They have offered me a interest rate of 7.5%. The response was good. I have chosen the post office because of the safe and security.
      Was this review helpful? 93
      , guwahati
      Reviewed on Dec 12, 2018
    • Post Office
      "Better Investment For FD account in post office"
      0.5 5.0/5 "Blown Away!"
      Earlier I invested in FD at post office, after five year I got the deposit amount with the best interest, payment mode is only cash. For Rs. 10,000 fixed deposit I got around Rs. 15,000 it helped me out. The service is also good in post office, the staff are responding well. Its good for domestic service.
      Was this review helpful? 53
      , bangalore
      Reviewed on Nov 30, 2018
    • Post Office
      "Good interest rate"
      0.5 5.0/5 "Blown Away!"
      I have invested the money in post office account recently. I have chosen the post office 5 years back. Its because of the safe and security and elements of the post office. Interest rates are more when i compared with other private bank. I have invested the money of Rs. 1.5 lakhs. Its easy to invest the money. I have a friend who is working over there helped me a lot.
      Was this review helpful? 53
      , chennai
      Reviewed on Nov 30, 2018
    • Post Office
      "Need scope of improvement"
      0.5 3.0/5 "Satisfactory"
      Earlier I have taken fixed deposit in Post office, I have deposited the amount of Rs. 8 lakhs, they are providing 8% for interest for the period of one year. Now it came down, the benefits are good but I need to engage with the agent to invest the money in FD. Their service is not upto the mark.
      Was this review helpful? 51
      , hyderabad
      Reviewed on Nov 13, 2018
    • Post Office
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I have a Fixed Deposit account with India Post Office from last 1 year, i have invested an amount Rs 1 lac and maturity period is after 5 years. Customer service is very good and they explained all the terms and conditions. I get a returns of 7% and i am satisfied with it.
      Was this review helpful? 46
      , hyderabad
      Reviewed on Sep 26, 2018
    • Post Office
      "Needs to improve"
      0.5 2.5/5 "Just OK"
      I have opened a Fixed Deposit with India Post Office from last 3 years, the services provided by India Post office is no up to the mark and their response is always delayed. I am not sure with the amount of investment made. I am not satisfied with the returns of this Fixed deposit.
      Was this review helpful? 55
      , hyderabad
      Reviewed on Feb 05, 2018
    • Post Office
      "Good returns"
      0.5 4.5/5 "Excellent!"
      I had a Fixed Deposit with Post Office a few time back, and found the return to be pretty satisfying. I found the overall experience with them to be pretty good and didn't face any issue at all. I found this account to be good return for the investment I made.
      Was this review helpful? 59
      , bhubaneshwar
      Reviewed on Nov 08, 2017
    • Post Office
      0.5 4.0/5 "Great!"
      I do have the Fixed deposit account with the India post office. Interest rate is more than bankers with them. I would like to say that the customer service is very average one and that has to be get improved more, also they need to work on it.
      Was this review helpful? 32
      , noida
      Reviewed on Sep 28, 2017
    • Post Office
      "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? 69
      , hyderabad
      Reviewed on Dec 29, 2016
    • Post Office
      "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? 64
      , bangalore
      Reviewed on Nov 25, 2016
    • Post Office
      "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? 94
      , mumbai
      Reviewed on Apr 26, 2016
    • Post Office
      "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? 59
      , hyderabad
      Reviewed on Mar 19, 2016
    • Post Office
      "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? 121
      , hyderabad
      Reviewed on Mar 02, 2016
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