Post Office Monthly Income Scheme


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 was inaugurated by the government for the low-risk appetite citizens of India, 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% per annum as a fixed monthly income. Traditional investors considered post office MIS 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 writer, I would recommend you to invest in the post office MIS if you can’t handle the risk.

Features of Post Office Monthly Income Scheme

  • The lock-in period of this scheme is 5 years from the account opening date. However, you can withdraw the amount anytime. If you withdraw amount within 1 year you will get noting, after 2 years you will get money after an economical deduction 2% as a penalty. Withdraw after 3 years you will get money after a nominal deduction of 1% as a penalty.
  • 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 multiplies of Rs. 1500.

Eligibility for Post Office Monthly Income Scheme

  • 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 Post Office MIS

  • 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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Post Office Monthly Income Scheme Online Payment

The online payment facility is available at the post office portal. So, if you have opened an account through an agent, you can give him/her details and monthly payment, he/she can submit on behalf of yourself.

Who Should Invest in 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.

How Post Office MIS works?

Understand the investment procedure of this scheme through this example. Mr. A buys post office MIS scheme. He wishes to invest 1 Lac rupees in post office monthly income scheme with a lock-in period of 5 years. At a yearly interest of 8.5%, he received a fixed amount Rs. 708 every month. After ending maturity period he will get deposited money back.

He has two options to withdraw money – 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.

What’s not effective about the post office MIS?

  • 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.
  • The interest income is taxable.

Final Say:

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 all time favorite investment scheme.

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About Author

She is a finance writer. With 2 years of experience in finance marketing, she knows how to execute money in the right direction and acknowledge you about everything related to the finance through her blogs. One of the best things about her, she enters creative things in her blog that force you to read in a depth.

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