How To Invest In Post Office MIS Account? Interest Rate, Other Features

Published On: 12, Feb 2019 | Source: NDTV

India Post, which also deals with banking services besides postal services, offers several saving schemes for small savers. One such product offered by India Post is monthly income scheme (MIS). Post office monthly income scheme account can be opened via cheque or cash. In case of cheque, the date of realization of cheque in government account should be the date of opening of account, as mentioned on the official website of India Post- Any number of MIS accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts. 

(Also read: Senior Citizen Savings Scheme Vs Public Provident Fund Scheme)

Given below are key features of post office monthly income scheme (MIS):


Post office monthly income scheme (MIS) account can be opened by any individual. Account can also be opened in the name of minor and a minor of 10 years and above age can open and operate the MIS account. Minor after attaining majority has to apply for conversion of the account in his name.

Interest Rate and maturity

With deposits in Post Office monthly income scheme (MIS), investors can increase their savings as deposits in this account fetch an interest rate of 7.3 per cent over a maturity period of five years. The interest on post office monthly income scheme (MIS) account is payable monthly, according to the official website of India Post.

(Also read: Fixed Deposit Interest Rates Offered By SBI, Post Office)

Quantum of contribution

The minimum amount required to set up a monthly income account is Rs 1,500. Maximum investment limit is Rs 4.5 lakh in single account and Rs 9 lakh in joint account.

Premature withdrawal

The account can be prematurely en-cashed after one year. However, if it is en-cashed before three years, the post office deducts 2 per cent of the deposit. If you en-cash it after 3 years, 1 per cent of deposit is deducted, according to India Post's official website.

Other features

Nomination facility is also available at the time of opening and also after opening of MIS account. MIS account can be transferred from one post office to another. Single monthly income scheme (MIS) account can also be converted into joint account and vice versa.