Post Office MIS: Monthly Income Scheme Guide 2025

Post Office Monthly Income Scheme (POMIS) is a popular investment option for people who want a regular monthly income with zero risk. Backed by the Government of India, it pays a fixed monthly interest on your lump sum deposit. It is especially popular among retirees and conservative investors.

What is Post Office Monthly Income Scheme (MIS)?

POMIS is a 5-year savings scheme where you invest a lump sum and receive monthly interest payments directly into your post office savings account. The principal is returned at maturity.

Key features:

• Tenure: 5 years
• Interest rate: 7.40% per annum (Q1 2025)
• Monthly payout: Interest paid every month
• Maximum deposit: ₹9,00,000 (single) / ₹15,00,000 (joint)
• Minimum deposit: ₹1,000 (multiples of ₹1,000)
• Safety: Government of India guarantee

Current MIS Interest Rate and Monthly Payout

Monthly payout formula: (Investment × 7.40%) ÷ 12

Who is Eligible?

• Any Indian resident individual (age 18+)
• Minor above 10 years (in own name)
• Minor below 10 years (through guardian)
• Joint account (up to 3 holders)
• NRIs are not eligible
• Multiple MIS accounts allowed (total deposit across all accounts must not exceed ₹9 lakh single / ₹15 lakh joint)

Joint account sharing:

• In a joint account, each holder's share is equal
• Each holder's individual limit of ₹9 lakh applies to their share

Documents Required

• Aadhaar card (mandatory)
• PAN card (mandatory for investment above ₹50,000)
• Passport-size photographs (2)
• Post Office Savings Account (mandatory — monthly interest is credited here)
• MIS Account Opening Form (available at post office)
• Deposit amount (minimum ₹1,000)

How to Open Post Office MIS Account

Online (via DOP Internet/Mobile Banking)

1. Log in to DOP Internet Banking or the DOP mobile app
2. Go to General Services → Service Request → MIS Account Opening
3. Select account type (single/joint)
4. Enter the deposit amount (₹1,000 to ₹9,00,000)
5. Confirm the transaction
6. MIS account is opened; monthly interest starts from next month

Offline (at Post Office)

1. Visit your nearest post office
2. Fill the MIS Account Opening Form
3. Submit KYC documents and photographs
4. Deposit the amount via cash, cheque, or transfer from savings account
5. Receive MIS passbook
6. Monthly interest is auto-credited to your linked savings account

How Monthly Payout Works

• Interest is calculated from the date of deposit
• First payout is credited one month after the deposit date
• Payout is credited to your Post Office Savings Account on the same date every month
• You can withdraw the interest from savings account via ATM (IPPB), counter, or transfer
• If interest is not withdrawn, it does not earn additional interest in the savings account

Premature Withdrawal Rules

Tax Rules for Post Office MIS

Important: Even though no TDS is deducted, the interest is taxable income. You must report it in your income tax return.

What Happens at Maturity?

• After 5 years, the principal amount is returned to your savings account
• You can reinvest in a new MIS account at the prevailing rate
• If you don't claim maturity, the amount stays without earning MIS interest
• Auto-renewal is not available — you must open a new account

Important Tips

1. Open a savings account first — MIS interest is credited to your Post Office Savings Account
2. Use joint account to maximize — invest up to ₹15 lakh in a joint account for ₹9,250/month income
3. Combine with Senior Citizens Savings Scheme — for retirees, use both SCSS and MIS for maximum monthly income
4. Interest is taxable — factor in your tax slab when calculating actual returns
5. Don't withdraw before 1 year — no premature closure allowed in the first year

Post Office MIS vs Other Monthly Income Options

Frequently Asked Questions

1. What is the maximum investment in Post Office MIS?

The maximum is ₹9,00,000 for a single account and ₹15,00,000 for a joint account. This is the total across all MIS accounts held by an individual.

2. What is the current Post Office MIS interest rate?

The current rate is 7.40% per annum (Q1 2025). On ₹9 lakh, this gives approximately ₹5,550 per month.

3. Is Post Office MIS tax free?

No, MIS interest is fully taxable as per your income tax slab. However, no TDS is deducted — you must self-report the income in your ITR.

4. Can I withdraw Post Office MIS before 5 years?

Yes, after 1 year. A 2% penalty is deducted if withdrawn between 1-3 years, and 1% penalty between 3-5 years. No withdrawal is allowed before 1 year.

5. How is MIS monthly interest paid?

Interest is auto-credited to your linked Post Office Savings Account every month on the deposit anniversary date. You can withdraw it via ATM, counter, or transfer.

6. Can I open multiple MIS accounts?

Yes, you can open multiple accounts, but the total deposit across all single accounts cannot exceed ₹9 lakh per person.

7. Is there an auto-renewal option for MIS?

No, MIS does not have auto-renewal. At maturity, the principal is returned to your savings account. You must open a new MIS account to reinvest.

Disclaimer: This guide is for informational purposes only. CitizenNest is an independent platform and is not affiliated with India Post or the Government of India. Please verify current rates on the official India Post website.