Complete Detail of Post Office Monthly Income Scheme (MIS) 2018

Published Date - 06 April 2018 02:08:58 Updated Date - 12 April 2018 01:02:37

 

Post Office Monthly Income Scheme (POMIS)  is a popular investment scheme where in an individual invests a particular amount and gets an assured monthly income in the form of interest. Under the Post Office MIS scheme, the interest payable on a monthly basis commencing from the date of deposit is deposited in your post office savings account. There are no income tax benefits available for investing in the Post Office MIS account. This scheme is suitable for those who want a steady flow of income, such as retired persons.

If you are looking for a decent capital gain with a secured investment option then Post of Monthly Income Scheme (POMIS) may end your search. Generally, we end up parking our funds in fixed deposits and in other debt investments plans but POMIS promises better benefits as compared to others. Lets have a look at what POMIS is, how it functions and what all it offers.

Post Office Monthly Income Scheme plan is one of the many investment options offered by Post Office in India. Apart from delivering mails, post office offers a bouquet of services that include sale of forms, bill collection, savings schemes, life insurance cover etc.

Schemes offered by Post Offices are risk free as there is no touch of equity in them. POMIS is also one such scheme. Let us have a look at the features and benefits of POMIS.

PO-MIS investment does not qualify for any tax benefit under s/c 80 C and interest earned is fully taxable. Post office does not provide bonus on accounts opened after 1 December 2011. The maturity period is 5 years while premature withdrawal is subject to deduction in the principal amount.

This type of investment keeps your amount intact, provide better guaranteed returns along with ensuring fixed monthly income. Interested candidates can download the MIS Application Form and open their mis savings account.

POST OFFICE MIS INTEREST RATE 2018

Monthly Income Scheme Offers an annual interest rate of 7.3% p.a. So, an amount of 1,00,000 deposited in mis account yields a monthly payout of Rs. 608 every month. People can see PO Monthly Income Scheme Calculator to calculate their regular monthly income.

PO Monthly Income Scheme Calculato

 Just click this link and enter the values in the un-shaded cells under POMIS Calculator section. Then the candidates will get all the details about monthly income, premature withdrawal amount at different intervals, bonus and principal amount at maturity.

Post Office Savings Monthly Income Scheme Account

Either of the parents can open this best monthly income scheme account in the name of minor below 10 years of age. The important features of this po monthly income scheme are as follows:-

  • Post Office Monthly Income Scheme provides assured return of mis interest rate 2018 of 7.3% per annum.
  • This type of investment is absolutely risk free. Subscribers also get the facility of nomination.
  • People can earn fixed monthly payouts directly into their account. Auto Credit facility directly into the post office savings account is also available at any CBS Post Office.
  • All the account holders open Recurring Deposit (RD) Account and deposit the interest earned in RD along with this scheme to grow their invested amount.
  • Even minors are also applicable to invest in this scheme. After 10 years, they can apply for account conversion in their own name and then can individually operate their account.
 People can withdraw money directly from PO or can get credited in their savings account through ECS. People must withdraw their interest on monthly basis. If not so, then the interest earned will not yield any further profit, it sits idle. All those who want to open mis account can download the application form – MIS Account Opening Form

Where Can You Open an Account?

You can open the account in any of your nearest/ preferred post office.

DOCUMENTS REQUIRED FOR POST OFFICE MONTHLY INCOME SCHEME 

The needed documents for opening an account are:

  • An account opening form from your nearest post office
  • Two passport size photographs
  • Address and identity proof such as the Aadhaar card, passport, driving license, voter ID card, ration card, PAN card or declaration in Form 60 or 61 as per the Income Tax Act, 1961

HOW TO OPEN MIS IN POST OFFICE?

First of all, collect all the documents mentioned above.

Fill up the form carefully while providing the nominee details. Also, don’t forget to carry the original identity proof for verification purpose. Finally, get a witness signature and complete the procedure to get started.

POST OFFICE MONTHLY INCOME SCHEME FEATURES                

  • An account can be opened by cash/cheque by an individual. In case of cheque, the date of realization in Govt. account will be considered as the date of opening an account.
  • Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
  • You can transfer the account from one post office to another.
  • Nomination facility is available at the time of opening and also after opening of account.
  • An account can be opened in the name of a minor. A minor of 10 years and above age can open and operate the account.
  • After attaining majority she/ he has to apply for conversion of the account in her/ his name.
  • Joint account can be opened by two or three adults. All joint account holders have equal share in each joint account.
  • You may cpnvert your Single account into Joint and Vice Versa.
  • From 1.12.2011 onwards, maturity period is 5 years.

Post Office Monthly Income Scheme Bonus

The minimum amount that any individual must deposit is Rs. 1500 and in its multiples thereafter. Minors can invest a maximum amount of Rs. 3,00,000. The maximum amount that any individual can invest is Rs. 4,50,000 in single account. For joint account this limit is Rs. 9 lakh. Moreover in joint account also, the maximum share of any person can be Rs. 4,50,000. All joint account holders shares equal share in mis savings account.

All the accounts opened between 8 December 2007 and 30 November 2011 will get a monthly income scheme bonus of 5% on principal amount. All the accounts opened on or after 1 December 2011 are not liable for any bonus on principal amount. This is the best monthly income scheme of post offices without any risk factor involved.

Post Office Monthly Income Scheme Premature Withdrawal

MIS scheme has a lock-in period of 5 years (w.e.f 1 December 2011). All the subscribers will get fixed monthly income in this duration. However, people can opt for premature withdrawal before completing 5 years which is subject to the following conditions:-
Premature Encashment

Duration of Withdrawal

Return / Deduction

Less than 1 year

Subscribers get nothing

Between 1 to 3 years

Deduction with 2% nomination (penalty)

Between 3 to 5 years

Deduction with 1% nomination (penalty)

After 5 years

Full Deposit Back

People will get bonus of 5% on the maturity period of MIS Accounts opened between 8 December 2007 and 30 November 2011. No bonus is applicable on accounts opened after 1 December 2011.

POMIS Eligibility Criteria

The candidates must fulfill the following eligibility criteria to invest in this scheme:-
— Candidates must be an Indian Resident. POMIS does not allow NRIs to make investment.
— Minimum age requirement is 10 years. Any individual of more than 10 years of age can open this MIS savings account in their name and operate it.
— For individuals below 10 years of age (minors), parents can open an account in their name.
Any individual can open any number of mis accounts in post offices. However the maximum limit after adding balances in different accounts still remains the same.

Maximum amount 

A depositor can operate more than one account under the Post Office Monthly Income Scheme (POMIS), subject to the ceiling of maximum amount, which may be invested in single or joint account. The maximum limit is cumulative Rs. 4.5 lakh in single accounts and Rs.9 lakh in joint accounts.

Maturity Period

The maturity period of Post Office Monthly Income Scheme is five years. 

Premature closure of Post Office Monthly Income Scheme (POMIS) account

The scheme can be prematurely closed after one year. A deduction amounting to 2 per cent of the deposit will be applicable to a depositor closing the account between 1 year and three years after opening. And after three years, 1 per cent will be deducted. The remainder will be paid to the depositor.

 Compare All Post Office Schemes

Individuals must compare all post office saving schemes as per the Post Office Interest Rates Table 2018, Lock In Period (Maturity), Minimum / maximum investment, account opening and maintaining balance and risk factor involved through the table below:-
NSC vs PPF vs KVP vs SCSS vs RD vs TD vs SSY vs MIS vs PO Savings Account

Post Office Schemes

PO Interest Rate 2018

Lock-In / Maturity Period

Minimum / Maximum Investment

National Saving Certificate (NSC)

7.6% compounded annually but payable at maturity.

5 Years

Minimum amount is Rs. 100 and No Maximum limit

Public Provident Fund (PPF)

7.6% compounded yearly

15 Years

Minimum amount is Rs. 500 and Maximum amount is Rs. 1.5 lakh

Kisan Vikas Patra (KVP)

7.3% compounded yearly

9 Years 10 Months

Minimum amount is Rs. 1000 and No Maximum limit

Senior Citizen Saving Scheme (SCSS)

8.3% p.a from 31 March / 30 Sept / 31 December

5 Years

Minimum Deposit is Rs. 1000 and Maximum Rs. 15 lakh

Recurring Deposit (RD)

6.9% p.a compounded quarterly

5 Years

Minimum Rs. 10 per month and Maximum no limit

Time Deposit Account (TD)

6.6% to 7.4% p.a calculated quarterly

1 to 5 Years

Minimum Rs. 200 and no Maximum Limit

Sukanya Samriddhi Yojana (SSY)

8.1% p.a compounded annually

Till 21 years

Minimum Rs. 1000 and Maximum Rs. 1.5 lakh

Post Office Monthly Income Scheme (MIS)

7.3% per year payable monthly

5 years

Minimum Rs. 1500 and Maximum Rs. 4.5 lakh

Post Office Savings Account

4% p.a

No Lock In Period

Minimum Balance Rs. 50 (non-cheque) and Rs. 500 (cheque) and Maximum Rs. 1 lakh

Monthly Income Scheme (MIS) Interest Rate 2018 is almost similar to the Interest of KVP, NSC, RD and TD for the same duration. But MIS is the only scheme which provides interest withdrawal facility after every month. This is a long term regular income plan without any risk involved. People can also make mis login at website of Post Office MIS Account Check Online.

Benefits & Features of Post Office Monthly Income Scheme Account

  • Minimum investment amount is Rs.1500/- or in multiple thereafter.
  • A single account can hold maximum amount up to Rs. 4.50 lakhs and in case of a joint account Rs.9 lakhs is permissible.
  • Interest rate of 8.5% per annum payable monthly w.e.f. 01.04.2012
  • Maturity period is 5 years.
  • Claiming Bonus on Maturity has been undone w.e.f. 01.12.2011.
  • Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.
  • You can avail a facility of premature closure of account after 1 year but on or before 3 years @ 2.00% discount.
  • There would be a Deduction of 1% if account is closed prematurely at any time after three years.
  • There is no Tax rebate
  • Tax Deduction at Source (TDS) is not applicable.        
  • This scheme provides minors with a separate limit of investment of Rs. 3 lakhs and the same is not compiled with the limit of guardian.
  • It also provides you with auto credit facility of monthly interest to saving account if both accounts are at the same post office.
  • Deposits are also exempt from wealth tax.
  • Opening of this account by Non-Resident Indian / HUF is not permissible.
  • Nomination facility is also available under this scheme.
  • You can also avail the facility of reinvesting your amount on maturity of the account.

MIS Nomination Facility

All the eligible subscribers can open multiple accounts in any post office as well as joint mis accounts. Any individual can open this type of account in name of a minor below 10 years or for themselves. Nomination Facility is available at the time of account opening and even after opening mis account. People can select a nominee at any time they wish before maturity.

MIS savings account facilitate subscriber to operate more than 1 accounts in individual capacity or jointly. After 10 years, minor must convert MIS account in his name. The maximum limit on the deposits made by an individual still holds. People can convert their single account to joint account and vice versa.

Post Office Monthly Income Scheme 2018 – Highlights

The important features and highlights of mis savings scheme are as follows:-

MIS Interest Rate 2018

Minimum / Maximum Investment & Retaining Balance

Mis Interest Rate is 7.3% p.a payable monthly (w.e.f 1 Jan 2018)

  1. Minimum account opening balance is Rs. 1500. Afterwards, deposits are to be made in multiples of Rs. 1500
  2. Maximum investment is Rs. 4.50 lakh in single account and Rs. 9 lakh in Joint Account
  3. Any person can have maximum share of Rs. 4.5 lakh even in the case of joint accounts
  4. To calculate share of each individual in joint account, each joint holder must have equal share.
 

Salient Features

  • Any individual can open an mis account.
  • MIS Account opening procedure involves payment through cash / cheque.
  • MIS Account holders can avail the facility of nomination at the time of opening and also after opening the account.
  • Subscribers can transfer their account from 1 post office to another.
  • Any individual can open any number of accounts in any post office. However, the maximum investment must not be greater than Rs. 4.5 lakh.
  • Parents can open Monthly Income Scheme Account in the name of a minor below 10 years of age. Minors above 10 years of age can open an account in their own name and operate it also.
  • 2 or 3 individuals can also open a joint account.
  • Each account holder must have an equal share.
  • Any person can convert their single account to joint account and vice versa.
  • Minor must apply for conversion of account in his own name after attaining 10 years of age.
  • MIS Account Maturity Period / Inter Locking Period is 5 years (w.e.f 1 December 2011)
  • People can make interest withdrawal into their savings account at same post office through PDCs / ECs. For CBS Post Offices, people can get interest auto credited in savings account at any CBS Post office.
  • People can withdraw their principal amount between 1 year to 3 years with 2% deduction / discount and between 3 to 5 years with 1% deduction. After 5 years (maturity) subscribers can withdraw their entire money.
  • All the accounts opened between 8 December 2007 and 30 November 2011 will get 5% bonus while accounts opened after 1 December 2011 will not any bonus.
  • Principal Amount in MIS is completely secure. No TDS is applicable under s/c 80C. However the interest earned is entirely taxable.
 

For more details about the scheme, please visit the official website indiapost.gov.in

References

— To download application form in pdf format of all post office savings scheme, please click the link:-
Post Office Schemes Application Form Download


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