How is the individual account holderâs portion determined in a joint account?

Each joint account holder will possess an equal share in the joint account.

What if I choose not to withdraw the deposit amount upon maturity?

If you do not withdraw the deposit upon maturity, it will remain in the account and accrue simple interest based on the Post Office Savings Account rate for two years from maturity.

Is this scheme suitable for senior citizens?

Yes, it is beneficial for senior citizens as they can invest their life savings and earn interest to cover their monthly expenses.

What happens to my account if I relocate due to work?

If you move to a different city, you can transfer your POMIS account to the local Post Office at no additional charge.

What is the investment limit for POMIS in 2025?

The maximum deposit limit is Rs. 9 lakhs for an individual account and Rs. 15 lakhs for a joint account.

Can the nominee withdraw funds in the event of the investor's death before maturity?

Yes, nominees can apply for a death claim settlement immediately after the investor's death, regardless of whether the 5-year lock-in period is complete.

Can a single POMIS account be converted to a joint account?

Yes, conversion from a single to a joint account is possible, and vice versa.

What is the minimum balance required for a Post Office MIS scheme?

The minimum balance to be maintained is Rs. 1000.

How can a nominee or legal heir access the funds of a deceased depositor?

The nominee can present the death certificate to collect the entitled maturity amount. In the absence of a nominee, the legal heir can claim the estate.

What share does each account holder receive in a joint account?

Distribution is on a 50/50 basis, meaning each depositor in a joint account receives an equal share.

Post Office Monthly Income Scheme - MIS Interest Rate 2025

The Post Office Monthly Income Scheme is a secure and popular investment option in India, backed by the Government of India. It offers a guaranteed monthly income to investors, making it a preferred choice for individuals seeking regular income. Currently, the Post Office MIS interest rate is 7.4% per annum. The Union Government revises these interest rates each quarter.

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Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

Features and Benefits of the Post Office Monthly Income Scheme (POMIS)

The key features and benefits of the MIS (monthly income scheme) scheme are:

Eligibility: The MIS Post Office Scheme is open to all Indian citizens, excluding NRIs.
Investment Amount: Any amount in multiples of Rs. 100 is accepted under the MIS scheme.
Minor Account: A Post Office Monthly Income Scheme account can be opened for children above 10 years, with withdrawals permitted after maturation at 18 years.
Lock-in Period: The invested amount is locked in for a minimum of 5 years under the monthly income scheme.
Maximum Limit: Individuals can invest up to Rs. 9 Lakhs, with a minimum investment of Rs. 1,500. Joint accounts have a maximum limit of Rs. 15 Lakhs.
Transferable: You can transfer your Post Office Monthly Income Scheme account to a more convenient post office if you relocate within India.
Joint Account: Up to 3 individuals can jointly open an account, each with equal rights. The maximum limit for joint accounts is Rs. 15 Lakhs under the MIS scheme.
Transfer of Funds: Investors have the option to shift their funds to a recurring deposit (RD) account, a recent addition to the features offered under the MIS Post Office Scheme.
Nomination: Investors have the opportunity to designate a beneficiary, usually a family member, allowing them to claim the benefits and corpus in the event of the investor's demise during the account's tenure.
Auto-Withdrawal: Monthly interest can be withdrawn automatically through PDCs or ECS, especially if the account is with a CBS Post Office.
Convenience in handling money/interest: You have the option to receive the monthly interest either in person from the post office or have it automatically transferred to your savings account. Additionally, investing the interest in a Systematic Investment Plan (SIP) presents an attractive opportunity under the Post Office Monthly Income Scheme.
Reinvestment: After maturity, you can reinvest the principal amount in the same scheme for another 5-year term to sustain earning advantages.
Penalty: Early withdrawal before the 5-year lock-in period incurs a penalty.
Tax Benefits: While the interest is not subject to TDS, it doesn't qualify for tax benefits under Section 80C.
Investment Limits:
- Single Account: Rs 9,00,000
- Joint Account: Rs 15,00,000
- Minor Account: As stated at the time of account opening
High & Guaranteed Returns: Earn a healthy 7.4% interest annually under the MIS Post Office Scheme, one of the highest among government schemes. It's risk-free, backed by the Indian government.
Steady Monthly Income: Receive guaranteed monthly payments, providing a predictable income stream for your needs.
Reinvestment Option: You have the option to reinvest the earned interest in high-return securities like equity shares or equity funds; however, these investment alternatives come with significantly greater levels of risk.

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Returns Before Tax

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Yes

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Yes

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Fixed Deposits

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7% ^(TAXABLE)

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5.5%

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Life Cover

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What is the Eligibility Criteria for the Post Office Monthly Income Scheme?

To invest in the Post Office Monthly Income Scheme, you must meet the following eligibility criteria:

A single adult
Joint Account (up to 3 adults)
Guardian on behalf of a minor/person of unsound mind
Minor above 10 years of age in their name
The monthly income scheme is not available for NRIs

How Can You Open a Post Office Monthly Income Scheme Account?

Investing in a Post Office Monthly Income Scheme (MIS scheme) is quick and easy. You can open a Monthly Income Scheme savings account at your nearest Post Office branch. Follow the below-mentioned steps to open the account:

If you don't have a post office savings account, start by opening one.
Visit your nearest Post Office and request a POMIS application form.
Complete the application form and submit it along with a photocopy of your ID, residential proofs, and two passport-size photos at the Post Office. Don't forget to bring the originals for verification.
Ensure to obtain the signatures of your witness or nominee(s) on the form.
Make the initial deposit using cash or cheque. If using a post-dated cheque, the date on the cheque will be considered as the account opening date.
Once you've submitted all the required documents and made the initial deposit, the Post Office will process your application.
After processing, the Post Office executive will provide you with the details of your newly opened MIS Post Office Scheme account.

Documents Required to Open an Account Under the Post Office Monthly Income Scheme (MIS Scheme)

Identity Proof: Government-issued ID (e.g., Passport, Voter ID, Driving License, Aadhaar).
Address Proof: Government ID or recent utility bills.
Photographs: Passport-size photos.

Post Office MIS Interest Rate

The interest rate for the Post Office Monthly Income Scheme in 2025 has undergone a significant reduction, dropping from 8.40% to 7.4% annually, payable on a monthly basis. As of now, the interest rate for the Post Office MIS interest rate 2025 stands at 7.4% per annum. This rate applies to the interest period spanning from April to June 2025 and is payable monthly.

Post Office Monthly Income Scheme Interest Rate 2025 and History

Below are the MIS Post Office Interest Rate 2025 and the Post Office Monthly Income Scheme Interest Rate before that:

Period	Post Office MIS Interest Rate (Annual)
1st April 2024 - 30th June 2024	7.4% (Post Office MIS Interest Rate Current)
1st January 2024 - 31st March 2024	7.4%
1st October 2023 - 31st December 2023	7.4%
1st July-31st September 2023	7.4%
1st April 2023 - 30th June 2023	7.4%
1st January 2023 - 31st March 2023	7.1%
1st October 2022 - 31st December 2022	6.7%
1st April 2021 – 30th September 2022	6.6%
1st January 2018 – 30th June 2018	7.3%
1st July 2017 – 31st December 2017	7.5%
1st April 2017 – 30th June 2017	7.6%

Interest Rates as of April 2024

Early Withdrawal Penalty Rules for the Post Office Monthly Income Scheme

If you have to withdraw the money before 5 years under the Post Office MIS scheme, here’s what happens:

No withdrawals are permitted in the first year.
If closed between 1 to 3 years, a 2% penalty on the principal is imposed.
If closed between 4 to 5 years, a 1% penalty on the principal is applied.

Post Office Monthly Income Scheme vs. Monthly Income Plans

People often need clarification on the MIS and the Monthly Income Plan. To make it worse the Monthly Income Plan itself is used both in the context of insurance and mutual funds. Here are the essential differences between the three:

POMIS	Monthly Income Plan(Mutual Fund)	Monthly Income Plan (Insurance)
Ensures a fixed monthly income at a 7.4% annual rate.	Invests in a 20:80 ratio of equity-debt instruments.	Provides annuities to the insured as monthly income.
Monthly income guaranteed	Monthly income is variable, depending upon returns for the period.	Monthly income is fixed & guaranteed, derived from premiums paid over the policy tenure.
TDS is not applicable. However, interest earned is taxable	TDS is not applicable	Monthly paid annuity is taxable
Ideal for risk-averse individuals, especially the elderly and retirees.	Suited for investors seeking a middle ground between safe debt funds and risky equity funds.	Perfect for those desiring the dual advantages of insurance and investment.
After 1 year, withdrawal is possible with 1-2% penalty charges.	1% exit load for cashing units within the first year.	Surrender charges apply for withdrawing before the policy term ends.
POMIS limits: 9 lakhs for single account, 15 lakhs for joint.	No limit on the investment amount	No limit on the investment amount
Returns are fixed	Returns are not fixed. Can shoot up to 14% at times or tumble down even negatively.	The motive of monthly income plans is to ensure and secure the capital rather than getting the returns

Post Office Monthly Income Scheme vs Other Post Office Savings Schemes

Savings Scheme	Rate of Interest	TDS
Post Office Monthly Income Scheme	7.4%	No TDS is deducted
Post Office Recurring Deposit	6.7%	No TDS is deducted
Post Office Time Deposit	6.9%-7.5%	No TDS is deducted
National Savings Certificate	7.7%	TDS is deducted
Senior Citizen Saving Scheme	8.2%	TDS is deducted
Public Provident Fund	7.1%	TDS is deducted

Conclusion

The Post Office Monthly Income Scheme (MIS scheme) is a safe and secure investment option that offers substantial returns with a short lock-in period. The Monthly Income Scheme guarantees a fixed monthly income with an interest rate of 7.4% per annum. It is a perfect investment avenue for people who prefer debt investment with good returns.

Frequently Asked Questions

How is the individual account holder’s portion determined in a joint account?

Each joint account holder will possess an equal share in the joint account.
What if I choose not to withdraw the deposit amount upon maturity?

If you do not withdraw the deposit upon maturity, it will remain in the account and accrue simple interest based on the Post Office Savings Account rate for two years from maturity.
Is this scheme suitable for senior citizens?

Yes, it is beneficial for senior citizens as they can invest their life savings and earn interest to cover their monthly expenses.
What happens to my account if I relocate due to work?

If you move to a different city, you can transfer your POMIS account to the local Post Office at no additional charge.
What is the investment limit for POMIS in 2025?

The maximum deposit limit is Rs. 9 lakhs for an individual account and Rs. 15 lakhs for a joint account.
Can the nominee withdraw funds in the event of the investor's death before maturity?

Yes, nominees can apply for a death claim settlement immediately after the investor's death, regardless of whether the 5-year lock-in period is complete.
Can a single POMIS account be converted to a joint account?

Yes, conversion from a single to a joint account is possible, and vice versa.
What is the minimum balance required for a Post Office MIS scheme?

The minimum balance to be maintained is Rs. 1000.
How can a nominee or legal heir access the funds of a deceased depositor?

The nominee can present the death certificate to collect the entitled maturity amount. In the absence of a nominee, the legal heir can claim the estate.
What share does each account holder receive in a joint account?

Distribution is on a 50/50 basis, meaning each depositor in a joint account receives an equal share.

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-02-2025

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).