Post Office Monthly Income Scheme (POMIS) – MIS Post Office


What is Post Office Monthly Income Scheme?

Are you seeking for the investment option that absolutely risks free, guaranteed return, and short maturity period, then the post office monthly income scheme is the true buy for you. Post office MIS scheme was inaugurated by the government for the low-risk appetite citizens of India. MIS Post Office scheme is designed for the people who wish to invest money in a safe place.

Post office monthly income scheme is designed for the risk-averse investors, especially for those who don’t feel to invest in equity or other assets. This scheme is the best for senior citizens because it offers guaranteed returns at 8.5% annul as a fixed monthly income. Traditional investors considered post office MIS scheme, one of the smartest investment as it provides better returns without losing any penny. While advanced investors who invest in the equity market, they never suggest you invest in the POMIS. It looks very old method so as you think that it was only a post office. But, being a finance adviser, I would recommend you to invest in the post office MIS scheme if you can’t handle the risk.

How does the MIS Post Office Work?

Post office monthly scheme is a highly reliable and low-risk investment. The amount you invest in the mis post office is safe and secure. To understand the investment procedure of this scheme, read this example. Suppose. Mr. A has invested 4.5 Lac in the POMIS, the interest rate is 7.7%, now he gets every month 2888 up to his maturity period. To check the return of Post Office MIS Scheme you can use, the post office monthly income scheme calculator.

He has two options to withdraw monthly income – either directly or credited in your saving account via Electronic transfer. As per the policy norms, the money should be withdrawn monthly. However, Mr. A has an option to withdraw money after one or two months. He can also utilize the option of post maturity to withdraw 4.5 lac any time.

Features of Post Office MIS Scheme

  • The lock-in period of this scheme is 5 years from the account opening date. However, withdrawal is also possible before maturity with some terms and condition.
  • You can open POMIS account individually or jointly (max 3 member are allowed)
  • There is no tax rebate feature available in this scheme.
  • 10 years below or above children can avail the benefits of post office monthly income scheme.
  • You can easily transfer the POIMS account from one post number to another port number.
  • There is no limit on the number of POIMS accounts to open.
  • The minimum amount is required to open POMIS account is 1500 rupees and the maximum is the multiples of Rs. 1500.
  • This scheme doesn’t offer any tax benefits under a section 80C.
  • If an individual doesn’t withdraw monthly income the interest will not be applied further.

Post office MIS Interest Rate

If you want to invest in post office mis scheme and looking to check its interest rates, let us tell. Post office MIS interest rate is 7.7% per annum which is fixed and payable monthly. To check Post Office MIS interest rate you can visit POMIS details at official site of post office.

Post Office MIS Scheme Investment Limit

If you are looking forward to investing in POMIS, the maximum amount you can invest is 4.5 Lakh in a single and where for joint you can invest 9 Lakh. The post office mis interest rate is fixed so you will get a fixed income after investing in the scheme. Individuals can invest in this scheme for up to 5 years. This scheme offers you guarantee returns and associated with low risk.

Compare MIS Post Office with other monthly income plans?

Post office mis scheme is a low-risk investment. As it is backed by the government its investment rules are simple and invested money is safe and secured. The interest rate of POMIS is a catch which is 7.7% that unable to get from other monthly income plans. Return is guaranteed and pre-tenure withdrawal is subject to penalty. If you are a novice investor and your risk appetite is lower than it is advisable to invest in POIMS. Because here you will get guaranteed returns, no TDS and low risk.

Differences POMIS Monthly Income Mutual Fund Monthly Income Insurance
Interest Rate Assured income at 7.7% annual rate Invested in a 20:80 equity-debt ratio and hence no guaranteed income Monthly annuities (rates vary based on premiums & period)
Tax On Return No TDS TDS applied Annuity is taxed
Return Type Fixed return rate Floating rate as per the market movement NA
Risk Score Low-risk, suitable for the risk-averse Suitable for people with a high-risk appetite Double benefits of investment & insurance
Withdrawal Withdrawal permitted after 12 months with penalty Exit load applicable if withdrawn before time Higher surrender charges as this is a long-term investment
Maximum Limit ₹4.5 lakhs for an individual and Rs. 9 lakhs for  shared account No investment limit No investment limit

Tax Benefit of Post Office Monthly Income Scheme

Mis post office is one of the most popular and easiest investment plans for monthly income. Though it doesn’t fall under Section 80C so the investment amount is subject to tax.  However, the good news is the interest earn from POMIS is free from TDS.

Eligibility for Post Office Monthly Income Scheme

This policy scheme is better for the individuals whose main priorities are the safety of capital and fixed monthly returns. Mainly this scheme is the best for the individuals who want to live an independent life after retirement because they will receive a fixed monthly income. However, the major downside of the post office MIS does not offer any tax rebate.

  • The policyholder must be a resident of India.
  • Applicant age must be 10 or above.
  • The maximum fund that policyholder can invest is 3 Lac.
  • The NRI citizens are prohibited to invest in post office monthly income scheme.

How to Open Post Office MIS?

Step1: The applicant has to visit nearby post office branch to take post office MIS scheme application.
Step2: Fill all the required details in the application form.
Step3: After filling the form, attached document for a verification process.
Step4: Once all the formalities are done from your side, you need a witness signature at the application form to open an account.

Documents Required to Open MIS Post Office

  • While opening an account you should submit address proof- PAN card, Aadhar card or driving license.
  • Secondly, you have to submit a copy of identity proof- PAN card, Aadhar card or Ration card.
  • Passport Size Photographs.

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POMIS Withdrawal Process

Post office monthly income scheme is one of the simplest investments. Right from the opening account to withdraw every process is hassle-free. The tenure period of mis is 5 years. After the end of the tenure period, you can withdraw your invested amount.

Premature Withdrawal of the POMIS

If you need to withdraw the money before 5 years, premature withdrawal from POMIS is also possible but subject to the following conditions.

  • If you withdraw the amount before 1 year from the date of your investment you will not get any benefit.
  • In case of withdrawal between 1 to 3 years of account opening, you will receive money with a deduction of 2% as a penalty charge.
  • if you want withdrawal between 3 to 5 years of account opening, Entire corpus refunded with only 1% penalty

The post office monthly income scheme is one of the most effective investment tools for individuals who have a low-risk appetite and need fixed monthly returns. More ever, as it is backed by the government so there is no chance of scams or fraud. Among the old aged, this is an all-time favorite investment scheme.

Questions Related to Post Office MIS Scheme

What if the customer invests more than the prescribed limit?

A. If you invest more than the prescribed limit then your nearest branch officer will inform you to withdraw the extra amount from the account. It is advisable not to invest more than the limit in the post office monthly income scheme because of the excess amount you will be paid only post office savings account interest rate.

What happens when the investor does not withdraw the funds after five years?

A. If you don’t withdraw the funds after five years, the amount will be idle and no interest charges will be applied. However, the can redeem the entire amount whenever they want to. But, it is advisable to keep track of the investment from time to time.

When can the depositor assign a nominee in post office mis scheme?

A. You can avail the nomination facility before the end of the maturity period. It is advisable to appoint nominee at the time of opening MIS post office account which will be easy for you, nominee and bank as well.

What happens after death of investor of post office mis scheme?

A. In the event of the death of the depositor, the nominee must close the account and the invested amount in the post office monthly income scheme will be transferred to a nominee. To claim the amount nominee has to visit the post office and opt for the claiming process and execute all the formalities. Once all the formalities have been done, they will receive an amount in their account.

How is the post office mis scheme interest payable?

A. The post office MIS interest rate is set by the government. The interest rate is payable on the invested amount is quarterly. The current interest rate of POMIS is 7.7% respectively and the maximum amount you can invest as a single person is 4.5 Lac and in joint 9 lac. You can also check the return amount with the help of the post office monthly income scheme calculator.

What happens when the interest payout date is on a postal holiday?

A. In case of postal holiday the interest payout dates on the preceding date of the postal holiday. And in general, the interest payable on every quarterly month.

Is any bonus paid at the time of maturity of POMIS?

A. Post office monthly scheme offer benefits at the time of maturity period.  The MIS post office offer guaranteed return on the completion of the tenure period. You will receive a sum of the amount you have paid plus some bonuses that listed on the terms and condition of the policy of the post office monthly income scheme.

What happens when depositor of a joint POMIS account faces death?

A. In the event of the death of the POMIS joint account holder, the whole saving account will be handled to the survival. If banks found an excess amount than survival has an authority to withdraw excess amount any time. And the post office monthly income scheme will be continued till the maturity period.

What is post office mis scheme online payment process?

A. The online payment facility for Post Office schemes is currently available only for recurring deposits through ECS (Electronic Clearing Service). However, details regarding the post office monthly income scheme online payment is not clear, so it is advisable to confirm with your post office branch for the exact information for post office MIS online payment. Moreover, you may also ask your agent for the availability of online payment mode.

Is the amount deposited in POMIS liable to tax?

A. The amount you have invested in MIS Post Office is not liable to tax. At the time of maturity period.

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