Post Office Monthly Income Scheme or MIS – A complete guide

Safety and the constant stream of income are the requirements for many of us. The best product for such investors is Post Office Monthly Income Scheme or MIS. Let us try to understand about the features of this scheme.

Post Office Monthly Income Scheme or MIS

# Who can open Post Office Monthly Income Scheme or MIS ? 

An individual in single or jointly with one or more adults together can open this account. An individual can be guardian to the minor kid or of unsound mind individual. If the kid’s age is more than 10 years, then he can open and operate the account on his own. However, HUF or NRIs not allowed to open this account.

# What is the minimum and maximum limit of Post Office Monthly Income Scheme or MIS ?

This is the one-time investment product. You invest a lump sum and start to earn monthly income. The minimum amount you can invest is Rs.1,500 and the maximum limit is Rs.4,50,000.

If you have a joint account, then you can invest up to Rs.9,00,000. You can open as many accounts as you can. But the combined limit under your head must not cross Rs.4,50,000 (including joint account you are holding).

Let us say Mr.X opened the account with the deposit of Rs.2,00,000 individually. Along with this, he opened one more account with his wife Mrs.X  in joint name. In this joint account, he deposited Rs.5,00,000. Then for Mr.X the total investment is Rs.2,00,000 from his account and Rs.2,50,000 from the joint account. So his limit for investing in Post Office Monthly Income Scheme or MIS for Mr.X is exhausted.

However, for Mrs.X the investment is considered as Rs.2,50,000 only (50% of the joint account investment). Hope this is clear now.

But do remember that Mr.X can open one more account in his kid’s name as a guardian. For such minor accounts, Mr.X individual limits will not be considered. I noticed that few portals mentioned that minor account is a maximum limit of Rs.3,00,000. However, the same is not mentioned on Post Office portal.

Let us say if someone opened the joint account with three members and the amount deposited is Rs.9,00,000. Then, for consideration of maximum limit, the deposited amount is equally considered among all depositors. Like for all individuals, it is Rs.3,00,000.

You can convert the individual account to joint account and vice versa. If the account is opened in the name of minor, then you have to inform to post office and convert it to the normal account.

# What if you deposit more than the prescribed limit?

If post office department come to know about such breach of limit, then they inform you to immediately withdraw the excess amount. Such excess deposited money will earn only post office savings account interest rate. The period will be from the deposit of such excess amount to the end of the month preceding the month in which the depositor has been requested to withdraw such excess amount in the account.

# What is the rate of interest of Post Office Monthly Income Scheme or MIS currently?

Currently for 1st April, 2016 to 30th June, 2016, the interest rate is 7.8%. The interest rate will change on a quarterly base. However, you will get the interest of what it is during the time of deposit. I wrote a detailed post on these interest rate calculation changes in my post “Post Office Savings Schemes -Changes effective from 1st, April 2016“.

Do remember that interest rate nowadays changes for all Post Office Schemes on a quarterly basis. However, for you, the interest at the time of depositing will be applicable for you throughout the 5 years period.

# How you receive the interest in Post Office Monthly Income Scheme or MIS?

The interest will be payable on a monthly base. Let us say you deposited the money on 3rd June, 2016. You will r the money from 3rd July, 2016. The date of a payout will be 3rd  of every month as you deposited the money on 3rd of June.

# What is the tenure of Post Office Monthly Income Scheme or MIS?

Earlier it was 6 years. Now it is reduced to 5 years.

# What if you not withdraws the money after 5 years?

After the completion of 5th year, if you not withdrawn the amount and interest, then such accounts will earn the simple interest of post office savings account up to 2 years ONLY. After that period, it will be kept idle forever.

# Whether nomination facility is available in Post Office Monthly Income Scheme or MIS?

Yes, one can nominate to this investment either at the time of investment or during the tenure of a scheme. If you want to nominate after opening the account, then write an application and submit it at the concerned post office along with passbook.

#What are the tax benefits of Post Office Monthly Income Scheme or MIS?

While investing in this scheme, you will not get any tax benefits. Also, whatever the interest you receive on monthly base is taxable income for you. The one big relief is that there is no TDS on such interest payout. But keep in mind that if there is no TDS means you can’t avoid from paying tax. Because it is taxable income. You have to show the interest income and pay the tax as per your tax slab.

The money deposited in this scheme will be exempt from wealth tax.

# How you can receive the interest?

There are three ways to receive the money.

  1. Automatic credit to post office savings account-The interest will be directly payable to your post office savings account. In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices. If you not claim the interest rate, then such earned interest will not carry any further interest accumulation.
  2. Application for withdrawal-The depositor will submit the application for interest withdrawal every month. He will receive the interest either in cash or cheque as per the wish of the depositor.
  3. Through post dated cheques-The validity of such cheques will be for 3 months after the date of such cheque. This facility can be availed only if the cheque amount is more than Rs.100. In the event of loss of cheques by the payee, duplicate cheques will be issued only after the payee has signed an indemnity bond and the reconciliation period (validity period of the cheque plus one month reconciliation time) has elapsed. In the event of preclosure of account, then account depositor must return the unused cheques along with a penalty of Rs.4 per each such cheques. In the event of a death of a depositor, nominee or legal heir will have to return such unused cheque but they no need to pay any penalty on this. At the end of 5th year, account holder receives the amount through cheque only.

If the interest payout due date is on Sunday or postal holiday, then the interest will be credited on immediate preceeding working day.

Let us say you opened the account on 31st July, 2016. Then every month interest will be payable on 31st. However, few months will not have this date. In such a situation, the interest will be payable on last day of that month. Means on 30th of that particular month where there is no 31st day and in case of February it is either on 28th or 29th of February.

# Whether premature withdrawal available?

Yes, but only after a year. If you withdraw after a year but before 3 years, then they deduct 2% on your invested amount. If you withdraw after 3 years but before the completion of 5 years, then they deduct 1% from your invested amount as penalty.

# Any bonus payable at maturity?

As of now there is no such facility. However, accounts opened on or after 8.12.07 and up to 30.11.2011 enjoy the 5% bonus at maturity. It means, if you deposited Rs.1,00,000 initially, then at maturity you will receive Rs.1,05,000. Now such bonus facility is not available.

# How you can deposit money?

You can deposit the money in cash, cheque or DD  drawn in favour of the depositor or the Postmaster of the post office and endorsed in favour of the Postmaster.

# What happens if depositor dies?

The nominee or legal heir must close the account. They are not allowed to continue the account. The deposited amount along with the interest (up to the month preceding the month in which refund is made) will be payable to legal heir or nominee.

# What happens if a depositor dies in case of a joint account?

Once the death of the joint holder, the account will be treated as single account in the name of surviving account holder. Then as per the surviving depositor’s maximum limit  of investment, the account will continue. If post office found excess deposit in such a situation, then the surviving depositor must withdraw such excess amount immediately. If the interest is already paid as per MIS rates, then such excess interest will be adjusted in future monthly interest payout.

# Whether we can transfer this account from one post office to another?

Yes, the account can be transferred from one post office to another post office across India.

# Whether monthly interest can be automatically deposited into Post Office RD?

No, it will not be deposited automatically. The interest of MIS will be deposited to post office savings account. From there, you can deposit to RD account.

# How to open the Post Office Monthly Income Scheme or MIS?

You have to submit the following documents for opening the account.

  • Address Proof
  • Two passport size photographs
  • Identity Proof – like Passport, PAN Card, Ration Card, Voter Identity Card issued by the Election Commission of India

You have to carry original documents also to carry out KYC procedure.

Who can invest Post Office Monthly Income Scheme or MIS?

The monthly income generated from this scheme is taxable income. Hence, the 7.8% current interest may goes down if you calculate the exact return of post tax. However, the only thing that keeps people invest in such schemes is the constant stream of income.

We Indians first look for safety to our principal and returns on that. But we never bother  whether such low or negative real return affect us or not. If you are very much happy with SAFETY and kind of around 7.8% return then definitely go for it.

This scheme may be paradise for those who looking for fixed return from Government.

246 Comments

  1. Sir, I invested Rs. 04.29 lakhs in the post MIS on 22.12.2014 through an agent. After this, after seven months, on 23.07.2015, with the agent, I asked for the guidance of investing 01.05 lakh rupees. The agent was asked to invest in MIS, after which I did the same. After this the interest of both schemes continued to come to my account.
    The maturity of the first MIS was completed on 22.12.2019, on which I claimed my original amount of Rs 04 lakh 29 thousand on the Post Bank, but the Post Bank stated that the maximum limit to invest in MIS is limited to 4.5 lakh. And according to our database, you have invested more than Rs 79500, whose interest you have taken is Rs 29495, which is deductible.
    Sir, Please guide me that In such a situation, can I reduce the interest of overlimit by converting the second immature MIS into a joint MIS account.

    Reply
  2. Hallo , i want to withdraw amount from my MIS account 1 account is 3 year completed and 2nd one 2 year completed how much penalty will be paid , for the withdraw amount is it tax to be paid or not

    Reply
    • Dear Patil,
      Yes, the interest income is taxable income as per your tax slab.

      Reply
  3. Sir, please give information.. My father and mother jointly held mis account for 5 year of rs. 9 lakh, unfortunately my father died within a year, is it possible to close the mis account and withdraw whole amount without penalty… Because in which post office mis account opened, they forced us to close the account. If there is no penalty then I move on but if penalty imposed then why I closed the account, partially amount I withdraw and existing account run as a same manner in name of my mother

    Reply
    • Dear Vikas,
      As the second joint holder is alive, I think if you close, then they penalize you.

      Reply
  4. Sir,
    Please let me know whether primary and secondary account holder name can be interchangeable in MIS Joint account.
    Thank u in advance.

    Reply
  5. Hello Basavraj
    Thanks for your blog..It helps 🙂
    I was going thru below blog especially your responses to the queries raised by Mr Suresh and Mr Sachin on minor account and max limit. I also searched on internet for this information but could not get more.
    In nut shell, in a family of 2 adults and 2 kinds (more than 10 years of age) the max investment by family in MIS can be 18 lakhs . Like 9 lakhs jointly on 2 adults + 1 kid with mother as guardian 4.5 lakh+ second kid with father as guardian 4.5 lakh.
    As far as tax liability, mother would be responsible for 9 lakh and father would be responsible for 9 lakhs)
    Please confirm my above understanding.

    Reply
    • Dear Janu,
      Yes, you are right. But at the same time, the source of investment is also utmost important.

      Reply
      • Dear Basavaraj Sir,
        Why did you say the source of investment is important? How does it make a difference with Janu’s question?
        Another question. If i start MIS in my son/daughter name, say it ends in 5 years. Further when they grow, hope there won’t be any limitation that they can’t again open MIS on their own?

        Reply
        • Dear Vetrivel,
          Due to clubbing provisions of IT rules, source of investment is important for taxation. Regarding MIS, yes, your understanding is correct.

          Reply
  6. My jt.MIS WITH MY WIFE IS MATURING ON 20/10 /2019. WE SHALL BE AWAY FROM OUR COUNTRY DURING THAT TIME.
    CAN WE CLOSE THE A/c ON THE DATE OF MATURITY BY GIVING AUTHORITY TO MY/OUR REPRESENTATIVE AND GET THE PRINCIPAL AND ANY INTEREST CREDITED IN THE JOINT S.B A/c IN THE SAME POST OFFICE?
    WHAT WOULD BE THE PROCEDURE IN DETAIL?

    Kanak .

    Reply
  7. In POMIS account, me and my adult son have a joint account of 9 lac, please guide me whether my son take total interest amount in his income or half of the income is eligible for each account holder

    Reply
    • Dear Raj,
      How much % depends on both you. Because it is treated as BOTH of your income but taxation will be under the head of the first holder.

      Reply
  8. I have a kishan vikas patra which is 3 year old and a mis which is one year old jointly with my son. I am the first applicant and want to withdraw the same. Can i do the same without the sign of my son since he is not willing to sign. Pl suggest

    Reply
    • Dear Sharmistha,
      If it is the joint holding, then both holders signature is mandatory.

      Reply
  9. I heard that recently the ruling on tax deduction on MIS interest is Rs. 50,000/- per annum. Is this true?

    Reply
  10. It’s really helpful. Tnx for sharing the information. But pls describe limit for senior citizen and divyang

    Reply
  11. Sir Mis or scss is taxable or not

    Reply
    • Dear Vinay,
      Yes, interest on both of the products is taxable as per your tax slab.

      Reply
      • Sir, you can also mention about the tax benefit made available to Interest on MIS, newly.

        Reply
  12. But now the FPO where I opened my rd, SB account and mis is dismantled. So how can I transfer my account they told me that they transfer my account but where they even don’t know. Is there any other procedure for such problem.

    Reply
    • Dear Vikrant,
      Let them dismantled. But you have to approach the same Post Office.

      Reply
  13. Sir I have opened my SB account rd account and mis at FPO but now they are closed and they give me 10digit account no and say that now you can access to any civil post office but now my rd account is mature. From where I get liquified my rd account as no civil post office take interest in it.

    Reply
    • Dear Vikrant,
      Approach the same Post Office where your RD is opened.

      Reply
  14. I have given Rs 6 lacks HDFC cheque to post office to open Time deposit my money debited 15 days back but post office staff saying still we are not received any confirmation from our head office when we receive confirmation then we will open new TD account please help me what can I do for this…Thanks

    Reply
    • Dear Santosh,
      It is a tactical delay. Let them give the answer in writing.

      Reply
  15. Hi,
    My father had a joint POMIS with my mom,now after his death I need to withdraw the excess amount, will this withdrawal associate any penalty?

    Reply
  16. Sir, single MIS account can be converted into Joint account..

    Reply
  17. As I have an MIS with joint name of my wife for Rs.2,40,000/- on13 10 2017. I got an Insurance Policy Matured now for Rs.3.00 Lacs Now. Can I add this amount on the existing MIS or should I have to open a new account MIS pl advise?

    Reply
  18. If In mis scheme 4,50,000 invest in minor name & his mother is guardian.. then his mother can invest other 450000 in her name individual

    Reply
    • Dear Hemakshi,
      This is already cleared in the above post. Even though the mother is a guardian, it is considered as her investment only. Hence, she can’t invest more than this.

      Reply
  19. HOW CAN REGISTERED A NOMINEE ONLINE IN M.I.S.

    Reply
    • Dear Sanjay,
      Online nomination registration is not possible for MIS.

      Reply
      • Ok, Thanks!

        Reply
  20. hi sir i was started MIS account before 5 months . i want money urgently . how to get or close my MIS account. pls help me out .

    Reply
    • Dear Srikanth,
      I already cleared this point in above post. You can withdraw this only after a year but not before that.

      Reply
  21. Is the 450000 limit in MIS only considered in one branch or it is the total of all the MIS accounts in all the branches or different locations
    Eg if in X location I have an MIS account of 300000 & joint account in y location of 900000 under my name but i am the 2nd applicant/holder then what is the total amount under my name..

    Reply
  22. I have opened 3 MIS joint accounts with my sister of 3 lakhs each.
    In two accounts I am the 1st applicant
    And the 3rd one she is the 1st applicant.
    How do I calculate the total money invested under my name so that I don’t cross the limit of 450000.
    As you this because while opening the MIS account i was told the money gets divided however now they are saying the entire amount reflects under the 1st applicants name

    Reply
    • Nikita-Your total investment is Rs.9,00,000 jointly. Hence, 50% of that is Rs.4,50,000, which is within the individual’s limit.

      Reply
  23. Hi Sir,
    I lost the passbook for the MIS account have no other details how can I retrieve details or get a duplicate passbook the post office staff won’t help,they keep saying I have to file NC but what details will I put in the NC

    Reply
    • Amit-Better to raise an issue with higher authorities of Post Office.

      Reply
  24. Hi,

    If we deposit 9 Lakhs into POMIS as a joint account (Me and my Mother). Who will have to pay the tax? First account holder or Both (50% each?).

    Regards,
    Gayathri.

    Reply
      • Thanks for your quick response. How about account in the name of a minor. Any tax?

        Is it required to go via a agent to open a POMIS account or we can get it done directly from a post office?

        Reply
        • Gayathri-In case of minor, the taxation is in the hands of guardian (clubbing provisions applies).Agents not required to invest POMIS.

          Reply
  25. Sir,how much is tax on the interest income?

    Reply
      • At present i am not working and do not have have any source of income. i thought of investing in POMIS and that is the reason i asked what will be the tax on interest earned through it?

        Reply
  26. HOW i can open mis account from online without going to postoffice .i need to deposit money every month

    Reply
  27. i want to deposit 5 lakhs in post office f0r 5 or more than 5 years ..could you please tell me which scheme should i choose so that i will get 10 lakhs after the completion of maturity period.

    Reply
  28. Dear Mr Basavaraj,

    After reading your article several times and the questions answered by you, I am still not 100% clear on a particular situation : I have :
    One MIS for Rs. 450,000 in my daughters name, Account Type Single, she was 13 then. Parent name : my wife
    One MIS for Rs. 450,000 in my son’s name, Account Type Single, he was 9.3 years then. Parent name : my wife
    One MIS for Rs. 900,000 in myself and wife’s joint name.
    Is there any violation ? The PO agent says no problem. Today my daughter is 17 and son is 13.

    please let me know how to minimize the damage if I may have to close a account pre-mature. Do the PO own for the error on opening a single type account for my son who was less then 10 ?

    Reply
    • Suresh-I already pointed that for minor account, your individual accounts limit will not be considered. In your wife case, from joint account you can consider Rs.4,50,000 ONLY. Also, she is guardian of your both kids account which is separate issue.

      Reply
      • Highly appreciate your quick response. Does it mean there is no violation and all the 3 MIS can continue and mature as per time ? Thanks once again Sir.
        I am raising this today as my PO Agent called and informed to me that you have to close one MIS and will not get any interest for the same (nearly 4 years passed)

        Reply
  29. Mr Bash, is there any other way to cross check and I can talk to them on that basis. As I can not see their system. It will be an extreme step to tell them to give in writing. They are behaving in a rude way. It is possible to talk only with some evidence. I am showing my account statement of clearance. They are saying it passes through STATE BANK OF INDIA. And there were 3 hoildays in between. So taking time to reflect. Is it so ?

    Reply
    • Srikant-The biggest mistake you did is dealing with Post Office. They neither heed nor knowledge or patience to listen.

      Reply
  30. We have opened a joint mis account. We want to tranfer the account. Is it necessary that both person should sign the transfer document or is it okay if only one person signs it.

    Reply
  31. How to know the cheque realisation date in MIS scheme while opening new MIS account. My bank account is showing cheque cleared. But post office is saying it is not showing in their system. What is the role of STATE BANK OF INDIA here . I have given the cheques on 18th Jan 2018. The cheque got debited from my account on 22nd Jan 2018. Now the post office is telling me to wait. Where to cross check the status ?

    Reply
      • Then what exactly the post office is waiting for ? The post office is telling me to wait as it is not showing in their system. Should I believe this ? How to check this ?

        Reply
  32. Dear Sir,

    I want to open a join account with my wife in POMIS. I will make a deposit from my salaried account.
    Now the question is can we treat the monthly income from this scheme as exclusively earned by my wife so that she only files the income tax in her name for this income ? Or do I also have to show any part of it in my total income for the purpose of tax? Please advice.

    Thank you,

    Sarang.

    Reply
    • Sarang-As the source of investment is your’s, the income from MIS will be treated as your income but not your wife’s.

      Reply
  33. Hello Sir,
    I want to deposit some amount for long period ..Is there any scheme through which I get double amount after some years later.
    Actually I heard somewhere this facility available in post office.
    Please tell me.
    Thanks

    Reply
    • Ashok-LONG PERIOD, DOUBLE AMOUNT AFTER SOME YEARS and I HEARD SOMEWHERE-All these words making me hard to guide you.

      Reply
      • Sorry for that..
        actually i want to deposit 5 lakhs in post office f0r 5 or more than years ..could you please tell me which scheme should i choose so that i will get 10 lakhs after the completion of maturity period.

        Reply
  34. Sir my son is 6 years old .can I open Post office MIS for him as a guardian?already I have MIS with my wife jointly up to max limit .will my limit will be considered during opening POMIS for my son?

    Reply
    • Chandan-I already cleared your doubt in above post. Please read it once again.

      Reply
  35. Ex service man (Army) How much maximum amt investment in MIS

    Reply
  36. Sir on maturity after 5 years can i reinvest the same amount for next five years on same joint account.

    Reply
  37. can the matured account closed without MIS passbook due to loss of PB.Please tell me the procedure.

    Reply
    • Seshaiah-You can close the MIS without passbook. Passbook is not a mandatory thing to close the account.

      Reply
      • Thank you very much Sir.

        Reply
      • GIVE RULE FOR ACCOUNT CLOSE WITHOUT PASSBOOK

        Reply
        • Dear Govind,
          You can apply for duplicate passbook. Once it is issued, then you can apply for closure.

          Reply
  38. Sir agar Mai interest mis account se permonth withdrawal krta hu, then after 5 years Jo principle amount h uspe tax cut karke milega kya?
    Example:mai 100000 rs ka mis karta hu to months muje 620 rs interest milega or Mai us interest ko monthly withdrawal Kar lu , then 5 yrs baad 100000 m kuch amount Kat k milega Kya? Ya principle amount Pura milega
    Sir pls reply
    I liked ur this article so much

    Reply
  39. I have given cheque on 24/10/2017 for new MIS account open,the cheque was realised on 26/10/2017 but post office people opened my MIS account on 31/10/2017. What can I do in this regard…please explain me

    Thank you

    Reply
    • Santosh-It is wrong, they must open on 26th. You can ask them why they delayed.

      Reply
      • They saying me mistekenly happened this,if want re open need to close that account for that penalty will be 2% …they saying we are sorry in this regard you are loosing only 5 days intrest bare it.

        I have received one month intrest on 30/11/2017 I want clarification from you can I continue this account or need to close ( if I close I will loose 9000/- )

        Please advice me

        Reply
          • Verbally they told me lot of times…now they requesting me kindly bare that 5 days intrest money. My main doubt is that these dates will create any problem at a time of maturity or not ?

            If any problem will come that time now I will close the account,if no problem I will continue that account

            Reply
              • Basvaraj Thanks for clarification

                Reply
                • I am ready to invest another 5 lacks in Monthly income schemes please suggest me best plans.

                  Thanks

                  Reply
  40. Sir,
    My dad expired on 30th dec, 2013.
    He had MIS in the PO.
    I misplaced the books.
    How do I get the numbers and claim that amount?

    Reply
    • Soumya-Approach the Post Office, they may help you in identifying through name or PAN card.

      Reply
  41. Sir meri mom ka MIS ac.hai jo ab dec2027me mature hone ko hai ..mujhepaise refix karwane hai.. Iska procedure batae plz

    Reply
  42. I have open MIS join B type account past 5 years .maturity amount of MIS account transfer in II nd saving single holder account , if it is possible or not

    Reply
  43. Are all the money deposited insured?

    Reply
    • Anonymous-In case of Post Office it is a sovereign guarantee of Govt.

      Reply
  44. What is the process of withdrawal of money from mis scheme after maturity.And can the interest earned deposited in recurring directly in post office itself?

    Reply
    • Sanchita-They will transfer to your savings account once you give the request for closure.

      Reply
  45. Given interest rate is monthly or anually??

    Reply
  46. Is KYC mandatory even if Adhar is given when opening post office MIS ?

    Reply
    • Priya-Along with KYC, you have to provide PAN card also. Hence, Aadhaar is the part of KYC process but not the complete process.

      Reply
  47. I have 2 savings account in 2 different post office. Can i keep the both the post office saving account book in different post office. kindly reply at the earliest. waiting for the reply. asap

    Reply
  48. Hi, I want to invest 9 lakh in POMIS. I want to have my minor child also as a joint holder in it. Can you please guide me on this.

    Reply
  49. sir my mis is mature in next month is there any document necessary at the time of maturity in post office like copy of adhaar card or pan card and they give me check immediately at that time my mis is 1lakh 20 thousand? sir pls reply…

    Reply
    • Saloni-If you completed the KYC process already, then you no need to undergo again. Otherwise, KYC is mandatory. Please be in touch with Post Officers in advance for the same.

      Reply
    • Hello Saloni,
      I am also curious to know about this process of withdrawal. Next month please inform us about how you got your money, what documents they asked, whatever they asked you to do…
      Thanks, Raj.

      Reply
  50. Sir
    I m only son of my father .my father has died on 21 Aug, 2013.he had mis account in post office . I have passbook .how to recover the money.I don’t live in the city where the my father had account

    Reply
    • Pradip-You have to visit the Post Office with the passbook and death certificate. Complete the KYC process and then you can claim that amount.

      Reply
  51. Hi,
    My Mother-in-law have a MIS account and nominated her daughter. Now Mother-in-law died. But her daughter doesnt know the MIS account no. and also not able to find the pass book.

    Kindly advise how the daughter can withdraw the MIS amount.

    Reply
    • Gopinath-Better she takes the help of post officials to identify. It may be hard but not difficult if the officials try to find.

      Reply
      • Yes. Tried with all the post office official in the branch. They couldnt help or dont know how to help without the MIS Account no.,

        Reply
          • Oh my bad luck.

            Thanks for your prompt reply Mr.Basavaraj

            Reply
            • gopinath- approach postoffice , say address of MIS holder .They can tell account number and even maturity date and amount .But for passbook ?

              PUT this problem via RTI on superindent or information officer .

              Reply
  52. Dear Basu,

    I am following up on my earlier query. My sister opened MIS in 2006 while she was in Bangalore. Now she is working in US and has taken US citizenship. She does not have PAN, Adhar or Voters ID. Please advise what documents she needs to present in order to claim the maturity amount.

    Reply
    • Priya-It is normal KYC documents like PAN and Address Proof. If she does not have, then let her show the reasons saying her citizenship proof of other countries.

      Reply
  53. Hello sir,
    I want to open a MIS joint account in post office. What is the advantage if I open mis a/c through an agent instead of going directly to the post master. Is there any commission I got if I go through with agent if yes than please tell me how much ..??

    Reply
    • Ashok-No such commission benefits if you go direct. Hence, better to take an advantage of agent and invest.

      Reply
  54. May I withdrawal SB a/c amount from other post office please

    Reply
  55. Hello,
    I think the interest earned every month can be credited in a 5 yr RD in post office. Automatic transfer option is possible.
    I need to know one important information. Suppose I open MIS and make the automatic transfer to RD. After 5 years I want to withdraw the maturity money from RD and my initial money. I want to know what are the documents will a post office ask me. Because, I already opened and left India (now nri). Will post office ask question me by asking me to show any proof? Income tax return (I never done in my life)? PAN details?
    Or it is just like..go to post office on the maturity date and get the full money? just by showing some indian ID..
    Thank you for your reply.
    Raj

    Reply
      • Thanks!
        So I need to just walk-in post office with my aadhaar card and get the money or check!!??

        Reply
        • Raj-I hope it is so easy. But reality always different with Post Office employees. Try your luck.

          Reply
  56. I have submitted claim Forms with all required documents for my mother’s Postal MIS account for Rs.450000/- on 01/07/2017 as she is no more. Till today my claim has not been settled by the Postal Department. On contacting the Post Master of the concerned Post office he has assured me that he will contact me over phone once the cheque is ready at their end which he has not done till date. Under the above circumstances I want to know as to how I can proceed against the Post Office and will I be entitled to any interest till such time I get the refund.

    Reply
    • Kumar-You no need to wait a single day. You go, sit in front of the Post Master, and let him finish and then only leave the chair.

      Reply
  57. Is the bonus amount received on maturity of MIS taxable?
    If taxable, kindly intimate how this amount is to be shown in the return? Is it income from other sources or long term capital gain

    Reply
    • Gautam-Yes Bonus of Post Office MIS is taxable under the head of “Income from Other Sources”.

      Reply
  58. For opening MIS account, deposit the cheque or DD drawn in favour of the the Postmaster of the post office is safe?

    Reply
  59. Will you plz eplain me what does this mean- interest will also be allowed on d accounts of d deceased deposit upto d closw of d month preceding d month in which payment is actually accepted

    Reply
  60. Dear Basu,

    My sister and I opened a MIS account in 2006 which matured a few years ago. Now for some years we both have been living abroad and my sister (first holder) has taken US citizenship. When I went to claim the maturity amount they are asking for Aadhar card, etc which we do not have. Could you please advise how we can get back our maturity amount?

    Many thanks,
    Priya Ratna

    Reply
    • Priya-Sadly KYC is mandatory and you have to submit it. If you don’t have any such proof, then better let them accept your proofs of aborad.

      Reply
  61. A single named fixed deposite’s interest can credit the joint named savings account in the post office ?

    Reply
  62. Sorry Sir
    In my earlier comment i mentioned wrong date of investment. It is June 2012. Thanks for understanding

    Reply
  63. Sir
    My MIS scheme has matured now and we started this in June’2016. Will we get bonus of 5% o no now on maturity ?
    Regards
    Sanjeev

    Reply
    • Sanjeev-I clearly mentioned in above post that Post Office MIS accounts opened “on or after 8.12.07 and up to 30.11.2011 enjoy the 5% bonus at maturity” are eligible for 5% bonus. Hence, you are not eligible.

      Reply
  64. Hi,

    My husband died in 2017 january.
    He had a joint account in post office MIS with me. now since after his death I am the only depositor in account and it exceeds the limit.
    is it necessary to close the account or can i just get the deposit cheque for the exceeding amount?

    Reply
  65. Hi,
    My uncle had an account and he died in September 2016. His account had no nominee. He was not married too. Can someone withdraw that amount? If yes, how?

    Reply
  66. Which is the best investment option to get a monthly income tax free for an amount of 25 lakhs?

    Reply
    • Rajesh-I am not aware about how much you are dependent on this Rs.25 lakh and monthly income and also background of your financial life, then how can I guide you?

      Reply
  67. can my 3rd child aged16 open MIS under my guardianship if I and my husband already having 2 MIS of 900000 each along with 2 elder child of above 18 age ?

    Reply
    • CK-As I mentioned above, guardian account’s are not considered for the maximum limit of an individual. Hence, you can open it. However, do you feel MIS is so great product (think the returns after post tax).

      Reply
  68. Mr.Basavaraj, GM! I have an MIS account for Rs.9 lakhs jointly with my wife with equal share of Rs.4.5 L each and the monthly interest is being credited to our joint SB account. As we have equal share in the principal amount, the interest derived thereon is also shared equally. So, for tax purposes, the interest on Rs.4.5 lakhs should add to MY annual income and the balance interest on Rs.4.5 L to my wife’s annual income. Is it so?

    Reply
      • Thnq Mr.Basavaraj! My investment was from my savings as a retired bank official. My wife invested from her interest income on STDRs standing on her name.

        Reply
        • Ramakrishna-STDR means? Why I am asking is, if the source of her deposit is from your income, then the interest income will be clubbed in your income for taxation purpose.

          Reply
  69. hello sir i want to open a new account Monthly Income Scheme jointly. So will you tell how much amount in form of cheque i want to pay to open a New account of MIS and how much Interest i will get from this scheme. Please suggest me.

    Reply
    • What is the financial liability of the Postal Department if the Agent commits fraudulent irregularity in remitting the amounts received from the investor under Recurring Deposit Scheme. Please clarify.

      Reply
      • Subrahmanyam-I don’t think Post Office takes claim that. Because it is the responsibility of investor to verify every month. Blind belief may cost you more.

        Reply
    • Sir,

      I have query w.r.t. Postal scheme Monthly Income Plan.
      What if the account holder dies in between the currency of the scheme and nominees fail to inform even after 3/4 years. They do inform but at the time of maturity. Now Post office has deducted interest paid for last 5 years i.e. around 80,000/-
      They have not offered bonus also. What best can be done as this is huge loss for the beneficiaries.
      Regards.

      Reply
      • Yashwant-I already mentioned such cases as “After the completion of 5th year, if you not withdrawn the amount and interest, then such accounts will earn the simple interest of post office savings account up to 2 years ONLY. After that period, it will be kept idle forever.” Let them show the rule or else show them this rule.
        However, in this case it is death. Hence, I suggest you to let them show the rules not orally but with written.

        Reply
        • SIR,

          Thanks for your prompt reply. However, I am not clear whether the beneficiary can get Rs. 80,000 or atleast compensation after adjusting some penalties.
          As in the subject case, it was joint account and the person whose name was first died in between.
          Agent informed the family that there is no need to inform the Post Office and at the time of maturity it can be informed.
          Once informed, after 5 years Post Office deducted the amount paid over 5 years as interest.
          Can we get any benefits if we again approach the Post Office
          Regards

          Reply
          • Yashwant-They may claim you hid intentionally. However, as it is joint account, the only action required is deletion of first holder and continue the MIS as usual. But instead they not ready to give you interest. This is strange. Hence, suggesting you to request them to give in written.

            Reply
            • THANKS ONCE AGAIN SIR.

              Reply
  70. Dear Sir, I would like to invest Rs 4.5 lakhs in MIS through SBI multi city cheque of other State SBI. Will that Postmaster accept the outstation cheque. How much amount of interest will I get per month. On maturity after five years , how much amount will be payable

    Reply
    • Parmar-Check with the concerned post office regarding the cheque issue. In above post, I already explained the interest payout rates and what you get at maturity.

      Reply
  71. thks for the response..
    wat is the maximum limit if a single holder can invest in one post office.
    can we invest( single holder) 9 lakhs in split of 4.5 each in two different post office?
    thks

    Reply
    • Indumathi-I already mentioned in above post. The maximum limit is Rs.4.5 lakh per individual. If you have a joint account, then you can invest up to Rs.9,00,000. You can open as many accounts as you can. But the combined limit under your head must not cross Rs.4,50,000 (including joint account you are holding).

      Reply
  72. hello Sir
    my mom has invested in MIS scheme in two different Post office in chennai Tamilnadu.
    All these years for the past 4 yrs she has been receiving the interest personally thro cash in the respective post office.
    in the recent two month one post office chennai is refusing to give her the interest by cash .they are demanding us to open SB acc in post office.my question is the SB acc mandatory to receive the Interest.
    any recent Govt ordrers on this …
    secondly if SB acc is mandatory …can we open SB account for both MIS together and link the same.
    thanks

    Reply
    • Indumathi-There is no such mandatory thing you must have SB account. They may be doing so as there is cash crunch.

      Reply
      • thks Sir

        Reply
  73. Hello Basavraj,

    Can you please research on Monthly income plan available in Market and help me choosing the best one. Time horizon is 15 years. would like get some monthly income after 15 years.

    Regards
    smitha

    Reply
    • Smitha-If your monthly income requirement is after 15 years, then why you are looking for Monthly Income Schemes for NOW?

      Reply
  74. Hello Sir , what will be the procedure to Renew the Post Office MIS?

    Reply
  75. Hello…. Please advise me as to what’s the process of getting a duplicate MIS pass book issued, if lost.

    Reply
  76. Sir
    I invest 4 lak 50 housand 9 month back at rate of interest 8.40.i m getting every month 3150 interest in my saving act.shoud i fill up 15 g form.like in other scheme senier citizen scheme to save tds we fill 15 h form to save tds.will i get my 4;50 after 5 year as it is if i not fill 15 g form.

    Reply
    • Parag-Do you feel avoiding TDS by submitting Form 15G means avoiding TAX?

      Reply
      • Sir i was not submited 15 g form.pls suggest me should i submit 15 g form now to avoid tds bcz when i start my MiS my agent told me that u will get ur monthly interest every month.he was not properly guide me.now pls suggest what can i do to save tds.if possible sir pls give me ur contact num on my mail id so i can talk with u

        Reply
  77. Dear Sir

    We had few MIS account in West Bengal (CBS) and we could not withdraw the interest amount for last 20 months, since we were relocated to Himachal Pradesh .
    recently, we had transferred these MIS accounts to Himachal Pradesh Post office (CBS).
    The accounts were transferred but the interest amount for 20 months did not.
    What should I do?
    Kindly advise

    Reply
    • Rupak-Why they not transferred the interest part? Check with concerned Post Office (where you now transferred).

      Reply
  78. Hi,
    Couple of our MIS accounts got matured. These are joint accounts. As we are unable to reach the parent post office at West Bengal the amount remains ideal. What would be the rate of interest if I am unable to renew those? Will it be possible to get those matures MIS accounts getting transferred to Bangalore so that we can renew it over here and operate easily?

    Reply
    • Rathore-Yes, you can apply for transfer at the base branch. After the completion of 5th year, if you not withdrawn the amount and interest, then such accounts will earn the simple interest of post office savings account up to 2 years ONLY. After that period, it will be kept idle forever.

      Reply
  79. Hello Sir,
    My parents invested 9 lakh in post office MIS. Unfortunately my father died in 2012 , when we recently went to close the account as the closure date. PO said to return the interest from the month of the fathers death. How does this work & what is the way out. Please guid

    Reply
    • Sunil-Yes, you did wrong by not informing about your father’s death.

      Reply
  80. Hello,
    Say an amount of 4.5 lakhs has been invested in POMIS and there are 2 joint holders – which holder has to pay the tax on yearly interest amount? Only first holder??
    Thanks.

    Reply
      • Thanks a lot. APPRECIATE the advice.

        Reply
          • Regarding Post office ATM card, can it be used for transfer from one PO account to another and also to transfer from PO to Bank and vice versa? Also, is one card issued per PO scheme that one invests in or for all schemes collectively?

            In an age when nobody (be it a lawyer, CA or other professional) opens their mouth unless they see the money flashing, services such as this should be lauded!! One only hopes Mr. Tonagatti will carry on with this non-profit making venture – might seem like a pastime to some but for most people it is priceless advice. Advice such as this could cost you a thousand rupees for a half-hour session, the market being full of professionals who ruthlessly cash in on people’s lack of basic financial knowledge.

            Reply
            • Jos-I am not sure about the Post Office ATM feature. Check with the concerned Post Office. Thanks for your kind words 🙂

              Reply
  81. Hi,

    On Maturity what are the ways that the maturity amount can be received when the holder of the account is not present in India to collect the same

    Thanks,
    James

    Reply
    • James-It will be credited to your savings account of Post Office.

      Reply
  82. Dear Basavaraj,
    I have a corpus of 70 lakhs as my life savings & I need a monthly income from it to live my life with family, what would be the safest yet best instrument(s) to park my money in? kindly give me a detailed guide as to how should I go abt it.
    thanks a lot for your valuable advise.
    Nishanth

    Reply
    • Nishanth-It is easy for you to share your requirement in few lines. But if I suggest you based on these few lines, then it’s disastrous for you than ME.

      Reply
      • so tell me what more u need to know I tell you .You can give me ur best advice, the risk is obviously mine not yours. coz you are only helping me. how can I hold u responsible.
        but I still need your advise.
        thanks a lot.

        Reply
        • Nishanth-Are you able to share your all personal financial data on this platform? Then only I am able to guide you. It is hard for you to share your personal information on such public platform.

          Reply
          • Dear Basu,
            what ever I have I hv told u above now based on that pls advise me.
            thanx

            Reply
            • Nishanth-But based on such half sharing, I can’t guide you. Please understand.

              Reply
  83. Basu,

    After completing 5 years, I will get saving a/c interest. Can, I invest same amount in MIS for next 5 years ?

    Reply
    • Alok-If MIS suites to your requirement, then definitely go ahead.

      Reply
  84. Mis interest is taxable income, means?? And if I deposit 4.5lakh in mis then what should I get per month?? And how to pay tax for this income?? Please reply. Sorry for my English. Thank you.

    Reply
    • Rahul-You have to show this interest income as “Income from Other Source” in your IT return. Pay the tax as per your applicable tax.

      Reply
  85. Plz correct it
    Whether monthly interest can be automatically deposited into Post Office RD?

    No, it will not be deposited automatically. The interest of MIS will be deposited to post office savings account. From there, you can deposit to RD account.

    Sir plz note that yes it is possible .customer does not need to deposit rd .it will be automatic credited from saving account in which mis interest came .ur post shows that customer has to come post office for rd deposit .so just make it more clear adding my statement

    Reply
    • Ashutosh-Thanks for pointing. Here, what I am going to point is MIS to RD is not possible. MIS to SAVINGS ACCOUNT to RD is possible.

      Reply
  86. Under current scenario , What is the best PIM Scheme or the FD with interest pay out every month.
    Pros and Cons ?

    Thanks in advance.

    Reply
      • Monthly pay out ,after tax considerations for lump sump investment

        Reply
          • FD after maturity if reinvested ,does it have tax exemption on the interest earned.
            Can the POIMS, be linked to Saving bank account of banks ?
            Does the Post office saving account ,have facility of ATM ,online transaction etc.

            Thanks In advance

            Reply
            • Sachin-Any interest income from FD is always taxable. No, you can’t link POMIS to your savings bank account. As of now, post office not provide you ATM facility.

              Reply
              • Can the account be opened in the name of minor and self name. Will it be an individual account or joint account.
                i.e. 4.5 Lac for self and another 4.5 Lac in name of minor age 8 yrs. old.

                Reply
                • Sachin-I already mentioned the same in above post. If an individual open one account in his name and another account as guardian to minor then the limit for such an individual is only Rs.4.5 lakh.

                  Reply
                  • Thanks

                    Sorry for missing it in above article

                    Reply
                    • Returns of FD is taxable and so also POIMS
                      Then what’s the extra edge POIMS have over FD
                      Also the Interest for FD might be more than the Interest on PIMS

                      Kindly advice

                    • Sachin-Constant monthly payout in MIS is important than one-time lump sum payment in FD. Even if PIMS rate of interest is less the interest payout on monthly base work out to be more beneficial. For example FD with 9% interest and payout after a year is not best with PIMS with interest rate of 8% and monthly payout. You get the cash immediately than waiting for a year. It all depends on you your own requirement.

  87. What the things to notice when you are buying jeevan lakshay policy.
    Please guide me. Thanks

    Reply
  88. Hello Sir,

    I want to invest in Dynamic Bond Funds. As they offer little extra Return as compare to liquid or short term funds.

    But i don’t know much about Dynamic Bond Funds.

    You are requested to kindly let me know should i invest in dynamic bond funds instead of liquid fund and fd.

    Regards

    Paritosh

    Reply
    • Paritosh-Dynamic bonds are riskier than liquid and short term debt funds. You can invest based on your risk appetite.

      Reply
  89. Dear basa
    It is not looking as attractive as others government schemes with such a low interet rate and vanished tax banefits.

    Reply
    • Nitin-True. But for few SECURITY and CONSTANT stream of income is priority than the LOW RETURN.

      Reply
  90. Dear Sir,

    I had taken LIC endowment Plan sum assured of Rs. 5.5 lakhs and HDFC child money back plan sum assured Rs.4.5 lakhs , I paid it for three years(LIC) and HDFC(4 years). As of now, I would like to withdraw/surrender this policy. Is it possible, can i get whatever i paid money so far? I feel that these policies will give less return after completion of respective years. I would like invest this money in MF instead of paying to this policies.

    Tenure= 15 years for LIC( Paid it for 3 yrs so far)
    Tenure=11 years for HDFC(Paid it for 4 years so far).

    Guide me sir regarding of it.

    Thanks.

    Reply
    • Srinivasan-Yes, you can surrender. But regarding values, I suggest you to contact respective insurer.

      Reply
      • Sir,

        Thanks for reply.

        I may lose some money/ will get my money what ever I paid it.

        Whether Buying blue chips company shares over SIP mode is good/Not from investor end without MF scheme?( Example= Rs.5000 every month for buying share such as ITC, Indusind bank, PI industries for making portfolio)

        You know sir, PI industries share price was 0.53 paise per share on 14-01-2002 and Now PI industries share Price is Rs-670 per share. in 13 years it gives returns 121,597% .

        Please give me guidance for buying share for making good portfolio for retirement plan?

        Thanks.

        Reply
          • THANKS SIR.

            Reply
            • Thank you sir for your replies to every comments.
              Sir my my question is if MIS does not pay any maturity benefit then should we deposit our money only for such a low interest and that is too taxable. Plz sir justify it.

              Reply
              • Vikram-Why not MIS pay you any maturity benefit? Low-interest rate and taxation are the concern you have to think while opening it.

                Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

Share This