Post Office Monthly Income Scheme or MIS – A complete guide

Effective from 1st April 2023, the limit of the Post Office Monthly Income Scheme or MIS has increased from the earlier limit of Rs.4.5 lakh and Rs.9 lakh for individual and joint accounts to Rs.9 lakh and Rs.15 lakh respectively.

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 the features of this scheme.

Post Office Monthly Income Scheme or MIS

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

An individual single or jointly with one or more adults together can open this account. An individual can be a guardian to the minor kid or of an 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 are not allowed to open this account.

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

This is a 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.9,00,000.

If you have a joint account, then you can invest up to Rs.15,00,000. You can open as many accounts as you can. But the combined limit under your head must not cross Rs.9,00,000 (including the joint account you are holding).

Let us say Mr.X opened the account with a deposit of Rs.5,00,000 individually. Along with this, he opened one more account with his wife Mrs.X  in a joint name. In this joint account, he deposited Rs.8,00,000. Then for Mr.X, the total investment is Rs.5,00,000 from his account and Rs.4,00,000 from the joint account. So his limit for investing in Post Office Monthly Income Scheme or MIS for Mr.X is exhausted (Rs.9,00,000).

However, for Mrs.X the investment is considered as Rs.4,00,000 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’s limits will not be considered. I noticed that few portals mentioned that a minor account is a maximum limit of Rs.3,00,000. However, the same is not mentioned on the Post Office portal.

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

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

# What if you deposit more than the prescribed limit?

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

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

Do remember that interest rate nowadays changes for all Post Office Schemes quarterly. However, for you, the interest at the time of depositing will apply to you throughout the 5 years.

# How do 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 the 3rd  of every month as you deposited the money on the 3rd of June.

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

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

# What if you do not withdraw the money after 5 years?

After the completion of the 5th year, if you have not withdrawn the amount and interest, then such accounts will earn the simple interest of post office savings account for 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 a passbook.

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

While investing in this scheme, you will not get any tax benefits. Also, whatever interest you receive on a monthly base is taxable income for you. The one big relief is that there is no TDS on such an interest payout. But keep in mind that if there is no TDS means you can’t avoid 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 the case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings accounts standing at any CBS Post office. If you do not claim the interest rate, then such earned interest will not carry any further interest accumulation.
  2. Application for withdrawal-The depositor will apply for interest withdrawal every month. He will receive the interest either in cash or cheque as per the wish of the depositor.
  3. Through the post-dated cheques-The validity of such cheques will be for 3 months after the date of the such cheque. This facility can be availed only if the cheque amount is more than Rs.100. In the event of the 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 the account, then the account depositor must return the unused cheques along with a penalty of Rs.4 per each such cheque. In the event of a death of a depositor, the nominee or legal heir will have to return such unused cheques but they do no need to pay any penalty for this. At the end of 5th year, the account holder receives the amount through cheque only.

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

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

# How you can deposit money?

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

# What happens if the 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 the refund is made) will be payable to the legal heir or nominee.

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

Once the death of the joint holder is, the account will be treated as a 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 the post office found an 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 a post office savings account. From there, you can deposit to the 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 a Passport, PAN Card, Ration Card, or Voter Identity Card issued by the Election Commission of India

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

Who can invest Post Office Monthly Income Scheme or MIS?

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

We Indians first look for safety to our principal and return on that. But we never bother whether such low or negative real returns 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 a paradise for those who looking for a fixed return from Government.

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376 thoughts on “Post Office Monthly Income Scheme or MIS – A complete guide”

  1. Hello,

    Let’s say I open a joint account with my wife and make her primary holder

    Who will be liable to pay tax?

    will both parties have to pay tax on earned interest or it will be liable to primary tax holder?

  2. I have a question… My father sold his property so he can take MIS in post office…
    And he will be help in property tax…

  3. Hi

    I m 53
    My wife 49
    Daughter 14

    I have read your article but I m little confused about maximum limit of MIS which we can open in individual or Joint names

    9 lac Me Primary Wife secondary
    9 lac Wife Primary Me secondary
    9 lac Daugther Primary Me secondary

    If we do like this I think for me portion will exceed 9 lac

    Is it possible that w can somehow club it to 9 lac each cumulatively 27 lac

    Also will these FDR will be insured as in bank maximum insurance is 5 lac , what about post office

    1. Dear Neeraj,
      As in your case, your maximum limit breaching Rs.9 lakh, you are not allowed to be part of your daughter’s investment. Sadly as your daughter is minor, you can’t consider as single entity and arrive Rs.27 lakh among you three.

  4. Amitesh Rumade

    Sir,I m interested in this MIS and want to open joint account with my mother who is 59 yrs old now.Can i open account with her in MIS or she has to open account in SCSS.And if she can open account with me in MIS will her account be transferred to SCSS as she will turn 60 yrs next year.

  5. Dear Sir
    I wish to open mis account and want to give an SBI cheque with application. will it take a longer time by this method regards

  6. Mera savings account hai joint
    Kya mai withdraw karsaktha hoon akela account type B hai. Maine post office me jankari liya tho not possible kehrahe

  7. In joint 900000 , MIS ACCOUNT one person dies after 1 year, deposit amount acess for single person limit. But due to covid not widrow amount or any paperwork.
    Now 5 years of mis completed, then what to do.
    What interest will get for excess 450000 amount.

  8. Hai…sir
    I have a joint b mode of operation mis scheme in postoffice….is it possible for any one account holder can preclosure the account and withdraw the principle amount…? Both are alive…

  9. DATA:
    Joint Post office MIS account of childless husband and wife.
    Deposit – Rs 156000/- ( one lakh, fifty six thousand ).
    Start on 9-3-2017.
    Maturity on 9-3-2022.
    Monthly interest : Approx Rs 1001/- to post office SB account.
    1st account holder died on 16-5-2020.
    2nd died on 5-12-2020.
    Auto credit closed on 21-1-2022.
    No nominee.
    Amount sanctioned letter issued to legal heir on 28-8-2022.

    QUESTION:

    For how many months,the savings interest will be paid on the deposit amount, Rs 156000/- ?

    Will the MIS interest for Feb and March of 2022 will be given when auto credit is closed in January, 2022 ?

    What is the rate of interest ?

    1. Dear Surpriya,
      The savings account interest is applicable from 9-3-2022 to 28-08-2022. “Will the MIS interest for Feb and March of 2022 will be given when auto credit is closed in January 2022?” – YES. It is as per the booked rate.

  10. Dear sir
    Kindly MIS joint Holder pre – Closer Account
    Account opening Date 15-05-2020 Deposit period 60 ( Months ) Deposit Amaunt 264000 Interest Rate 6.6 Account Closure Time Error
    The repayment amount is less than the penalty applicable provide Solutions Sir

  11. Dear Sir,

    I am holding a joint MIS account with my mother. She has passed away in December 2019. As you mentioned the amount should be treated as single account since 2019 andthe amount will be recovered at the time of maturiy however I just want to know if I will be getting savings interest from 2019 till maturity…Thanks

  12. Vishnu Kulshreshtha

    We have a joint MIS account in post office.We have total 09 a/c of total Rs
    09 lakh as on 31-03-2022,in which in 06 account my name is first name and in 03 my wife name is first name.The monthly interest amount is debited in a joint saving account in which my name is first name.
    Also we have 11RD joint accounts in which 07account my name is first name and in 04 account my wife name is first name.
    Is there anything wrong?
    If yes what should we do.
    My wife is a tax payer and file ITR above 10 lakh and shows all thease transactions in ITR,but I am not a tax payer and have only interest income less then 03 lakh.
    We both are of age 71 now.
    Please guide us

    1. Dear Sir,
      The taxation will be always on the head of first holder. Regarding the RDs, may I know why you are complicating with 11 RDs?

  13. Dear sir,
    I want to invest in postoffice mis in the name of my child aged 14 years. What will be the tax liability and who will be liable.

  14. Savitri Unnikrishnan

    My husband and I have joint account under POMIS, my husband is the first holder . To whom will tax liability fall, first holder or second holder or both ? The interest is received in his account but the income is shown in my AIS. How can I get it changed?

    1. Dear Savitri,
      It is always on the first holder. I am not sure as you are a second holder, why it is showing in your AIS.

  15. Sir i have invested in mis 9 lakh jointly with my wife where in i m first holder. Can i be second holder to give my wife first holder and tax liability will be on her. As my income limit exceed, so i have to pay more tax while holding first holder. Kindly advise.
    Maninder

  16. Sir, I have a joint MIS account with my wife and invested 650000. Can I use the interest earned from the MIS account and put it back into MIS account, as I can go till 900000? If yes, will the interest earned be taxable as I will be investing back into MIS account?

    1. Dear Shekhar,
      Yes, you can reinvest. However, whatever the interest you earn on monthly basis is taxable for you (even though you are re-investing).

  17. Hello Sir,
    I want to open a joint MIS account with my wife, and want to make her as primary account holder. At the moment she is unemployed. In such situation, who will be the tax payee for the Interest accrued?

  18. If the Post Office loses the passbook after we submit MIS pass book for settlement of an account of the deceased depositor by nominee,
    what can we do to get the issue settled and claim our amount?

  19. If we have joint account under Post Office MIS Scheme, to whom will tax liability fall, first holder or second holder or both ?

  20. Hello sir.
    My wife has a MIS account, saving account and 5 years RD account in post office.
    This year her residential status will change to NRI. Does she have to close the accounts prematurely?

  21. Helo sir my father and mother have MIS account on post office. On 9may 2021 my father had died. So now i inquired in post office. Now they said that the account is single. Now the mis account on my mother’s name. Now we can’t make it joint. Before nominee didn’t add so now we can’t add nominee. So there is one risk. If my mother dies so no body will get the money. So they said us to renew the account. If we renew the account, 1% will be deducted from the money. So please tell me it is the right procedure.

  22. Dear Sir, My mother had a post office monthly pension scheme, she passed away on 25th April 2021, I realized we lost the pass book, I am the designated nominee. how do I claim the refund Sir, May I request you to plz guide.

  23. Anvesh Nakhate

    Hello Sir, My father and mother had opened MIS in post office of Rs 900000 on 30-01-2021. My father passed away on 29-03-2021 when I contacted the post office they are telling me that they will close account after 1 year and after that they will deduct 2% of 900000 and then close account they said death claim is not possible as other joint holder is alive but somehow i feel this procedure is not correct. I request you guide me on same.

  24. My mother invested 49500 in MIS in 2010 and again it is renewed on 14. 09. 2016. My mother has no idea about the MIS BOOK May be not given by the PM or someway it is missed.
    Interest also given for some period and after 3 years we have not received .
    Now we approached the PO . They say they can not issue the duplicate book. We do not know how to take the money.

  25. Dear sir, will my mis maturity amount get automatically credited into my saving account in case of non renewal of mis for further period

  26. Hlo sir we have a mis joint account of 3 persons my father my mother and my self but my father has expired recently so what we need to do in that case. Will the mis account will continue as same and the same interest is paid out or not

  27. Dear sir ..can A grandma open a mis account with her grand daughter jointly.if yes ..then how the calculation of income will be. Because the grandma is unemployed and the grand daughter is also unemployed..is it also required to take proof of income from customer.
    Kindly guide.

  28. Pratun Bhattacharya

    In mis claim clouser the excess paid auto credited MIS interest after the death of the Depositor have to be recover not the percentage of the principal. Is it correct sir? Or there is nothing to be recover. Pls reply

  29. Respected Sir,
    My mother was having MIS account and she expired on 12.2.2020.
    Because of COVID situation, we ware unable to produce death certificate.
    We submitted that on last week. Now manager of post office is saying that we will receive the interest till her death and remaining amount ,that is last year interest ,we will not receive. That interest amount for whole year is 36000..What is the correct procedure in this situation ?
    Please advice.
    Thanks in advance.
    MRS Manila Naik

  30. Khushbu Dandekar

    Hello Sir,

    My Father has invested INR 250000/- in the monthly income scheme on 7th Jan 2021 but unfortunately have not received the interest amount yet. He is continously in touch with the post office but as per them our transaction is not yet approved by the headoffice

    Please advice

  31. Sir I am having a mis of rs 9 lac with my wife jointly in 2018.father of my mrs opend a mis of rs 46,500 in the year 2015 before his death.that was not known to me.now in December 2020 the same mis was matured and after knowing the same when we try to withdrawl the same ,it was denied by the post master .so what to do kindly advice me.
    Regards Gautam Nag
    Mail [email protected]
    Mobile 9477457535

  32. sir, I have a mis account at Gpo hyderabad which was matured in Sep 2020. Can i close the account in the post office nearer to my present address. pl let me know. p.manohar

  33. 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 …

  34. Can I do postal MIS premature without MIS book? My MIS book Miss placed but I need money for medical reasons very urgent. I have a GD for my Miss placed of passbook.

  35. My father was having MIS A/c. I am nominee in this A/c. My father expired on 18.08.2019. As the account matured on 02.12.2020, I submitted application for clouser of A/c in December, 20. The P.O. has reversed the interest credited to S.B. A/c since father’s death i.e.from 18.08.19. Is it correct?

          1. They should have paid interest at contracted rate till date of maturity and not till death of depositor. Is it correct?

  36. Srinivash GHANTASALA

    Sir,

    In the month of Oct 1st week 2019 my brother opened a joint account alongwith his wife for nine lakhs in post office MIS. But unfortunately on Oct 13th 2020 my brother passed away all of a sudden. What can be done with this account, Please advise. Is we have to make any penalty payment for this account..??. Can Children of my late brother can be added to this account as joint holders…?? Your kind and correct advise matters a lot for me.

  37. Sir,
    I want to Open MIS for my daughter. Can I pay from my account and the interest to be paid in her account monthly?. Also after maturity I want the amount to be transfer to my daughter account and not mine.
    Or is it mandatory that the initial investing amount should be from account holder only?

    Regards

  38. Good evening
    I seek your advice on following
    I had opened MIS for 1.5 lakh in post office jointly with my mother in Jan 2009. I had withdrawn interest of Rs 8000 in sept 2009 Rs 10000 in August 2010 and 15000 in December 2011
    After that my pass book was misplaced which I am able to locate only now
    Please guide me can I get interest till date or it will be till maturity which is six years and I am entitled to get bonus as it was applicable at that time and how much amount I will get ason date
    Kindly advice
    Thanks

  39. Sir,

    1) Why Withdrawal form needed while opening MIS account? I just finished opening savings account. Now the person asked me to fill another form for MIS account with a cheque with the amount I want to invest in MIS and a withdrawal form.

    2) Can I deposit fund in multiple transaction to the MIS account?

  40. My name is changed in my documents.now i want to change my name in my MIS.which i have made 3years ago.how i can do this

  41. Amit Kumar Mukherjee

    Sir I am Amit Kumar Mukherjee, I want to withdraw my mis with in 6month, I need it and what r the pross

  42. Usha Narayanan

    I have a mis scheme from post office. The monthly interest is deposited to SBI bank nerul branch navi Mumbai. I want to change the sbi account to another branch in palakkad kerala for perdonal reasons. Is it possible to change the ifsc code. What is the procedure. Please reply

  43. Dear Sir, I want to withdraw my deposited amount from an MIS scheme in post office. But right now I’m unable to access my post office due lockdown. Can I withdraw it from another post office or non-home branch ?

  44. I have a joint MIS account with my husband as first name for 4.5lacs. Now I wanted to invest into MIS another 4.5 lakhs with me as first name. Does this require me to start another SB account with my name alone as this is insisted by my post master. He is not allowing me to use the joint SB account already there with my husband. Is this correct?

  45. Sayani Mukherjee

    I wanted to open MIS account and completed all the formalities on 20 th march 20. Due to Covid 19 postmaster says that they cant do it now and procedure is incomplete. After 1st april 20 MIS interest rate changed. So what interest rate will be applicable? Previous 7.6% or present?

  46. Sir
    I am already having a MIS account in my name for the max. amount of Rs 450000. I wish to invest in MIS in the name of my handicapped dependent daughter aged 35 yrs as her guardian. Is it allowed?

    Regards

  47. NAYAN MANOHAR CHANDORKAR

    My fathar had invested in MIS scheme. But he expires after 8 month from the date of opening MIS scheme. And my mother is registered as nominee. I want to know whether there is any deduction applicable if nominee claim full amt.please help me I am not getting the right answer.

  48. Sir I am planning to invest 300000 in my daughter’s name .she is a student pursuing her studies .I want to do MIS .she is not earning ,will it be taxable.?

  49. What happens In case of the demise of the secondary joint account holder of the Post Office MIS . Can the account be continued till the 5 year term

  50. 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.

  51. 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

  52. 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

  53. Sathyanarayanan

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

      1. Sir,
        I had hired an agent to close my MIS account and create new one. Now, the old MiS account is closed and the agent is missing. I don’t know if he has created new MiS or not. How can I check.
        The post office is unwilling to share details as the old MiS account is very old.
        Where should I approach. Plz help as I think I have lost my money.

  54. 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.

      1. Vetrivel Muruga T R

        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?

        1. RAVINDRA Risbud

          If I invest more than 9 lakhs through an agent and after maturity of it we come to know that it is more than limit under the postal MIS scheme .What is the penalty that the client has to pay?

  55. 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 .

  56. Raj Kumar Sharma

    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

  57. 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

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

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

  60. 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.

  61. 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.

  62. 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

  63. 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?

      1. Hi sir,
        I have similar question. In monthly investment scheme.. Can second holder alone withdraw the money after maturity If one of joint account holder passed away before maturity time?

  64. varadarajan kasturi

    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?

  65. 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

  66. 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 .

  67. Nikita Solanki

    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..

  68. Nikita Solanki

    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

  69. 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

  70. 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.

      1. 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?

      1. Stanley Shadrack

        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?

  71. 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.

  72. 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 ?

    1. 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.

      1. 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)

  73. 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 ?

  74. 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.

  75. 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 ?

      1. 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 ?

  76. 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.

  77. 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

      1. 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.

  78. 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?

      1. How many times can this 5 yrs be repeated ?
        Recently, a senior citizen known to me was returned the money after 2 times (total invested time was 10 years).

  79. 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

  80. 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

      1. 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

          1. 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

  81. 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?

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

  83. 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

  84. Sanchita Agarwal

    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?

  85. 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

  86. 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.

  87. 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…

    1. 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.

  88. pradip agrawal

    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

  89. 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.

      1. 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.,

            1. 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 .

  90. 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.

  91. 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 ..??

  92. 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

  93. 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.

  94. 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

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

  96. 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

  97. 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

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

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

  100. 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

    1. 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.

  101. 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?

  102. Pankaj Datta Sharma

    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?

  103. 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 ?

    1. 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).

  104. 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?

      1. 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.

  105. 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.

    1. 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.

    2. 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.

      1. 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.

        1. 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

          1. 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.

  106. 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

  107. 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

    1. 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).

  108. 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

  109. 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

  110. 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.

      1. 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

  111. 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

  112. 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?

    1. 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.

  113. 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

  114. 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.

          1. 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.

  115. 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

  116. 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

      1. 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.

  117. 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.

  118. Ashutosh Kumar Kaushal

    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

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

    Thanks in advance.

          1. 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

              1. 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.

                1. 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.

                    1. 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

                    2. 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.

  120. Paritosh Arora

    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

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

  122. 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.

      1. 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.

            1. 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.

                1. My mother and i had a mis she is in other state and i need to withdraw the amount prematurely. I just have a cheque signed by her. Is it possible to withdraw amount without her.we are jointly in either or survior case

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