The Post Office Monthly Income Scheme (MIS) is designed for investors looking for a government-backed savings option that can provide regular income. The scheme currently offers an annual interest rate of 7.4%.
An MIS account can be opened with a minimum deposit of ₹1,000, with further deposits made in multiples of ₹1,000. The scheme has a fixed tenure of five years, while the interest generated from the investment is paid to the account holder on a regular basis.
What Is the Maximum Investment Limit?
The Post Office MIS has separate investment limits for single and joint accounts. A single account holder can deposit up to ₹9 lakh, while the maximum investment limit for a joint account is ₹15 lakh.
Investors can open more than one single or joint account, subject to the overall investment limits applicable to them.
The scheme is available to residents of India. A single account can be opened by one adult, while a joint account can be opened by up to three adults.
A guardian can also open an account on behalf of a minor. A child who has attained the age of 10 years can open an account in their own name. After turning 18, the account can be converted into an adult account by completing the required formalities and KYC requirements.
How Much Monthly Income Can You Earn?
At an annual interest rate of 7.4%, an investment of ₹9 lakh in a single account would generate ₹66,600 in annual interest. This works out to a monthly income of ₹5,550.
Similarly, an investment of ₹15 lakh in a joint account would generate ₹1,11,000 in annual interest, equivalent to ₹9,250 per month.
If the monthly interest is not withdrawn, it does not earn additional interest under the scheme. The interest can be credited automatically to a Post Office Savings Account or transferred through ECS.
Five-Year Tenure and Premature Closure Rules
The standard tenure of a Post Office MIS account is five years. However, investors can close the account before maturity subject to the applicable conditions.
No withdrawal is permitted during the first year after opening the account. If the account is closed after one year but before completing three years, 2% of the deposited amount is deducted.
For an account closed after three years but before maturity, the applicable deduction is 1% of the deposited amount.
Once the five-year tenure is completed, the account can be closed and the deposit withdrawn according to the scheme rules.
If the account is not closed after maturity, interest continues to be paid on the eligible amount at the rate applicable to Post Office Savings Accounts.
Disclaimer
This article is for general informational purposes only and should not be considered financial advice. Interest rates, investment limits, eligibility conditions and withdrawal rules under Post Office savings schemes may be revised by the government from time to time. Investors should verify the latest rules and applicable rates with India Post or the concerned Post Office before making an investment decision.