Monthly Income Scheme (MIS)

Everyone needs some fixed continues income on monthly basis. Monthly Income Scheme is the best options for those who have some large amount of money with them (birthday gifts for children/pension fund/windfall gain) and they need constant income

Who can open Monthly Income Scheme

  • A single adult or 2-3 adults jointly can open monthly income scheme in Indian post office.
  • More than one account can be opened subject to maximum deposit limits.

Where can be opened :

A monthly income plan can be opened at any post office branch in India.

Maturity of Monthly Income Scheme

Period of maturity of an account is five years.


A depositor may operate more than one account under these rules subject to the condition that deposits in all accounts taken together shall not exceed rupees three lakh in single account and rupees six lakh in joint account.

Deposit limits

  • Minimum:
    • Single or Jointly – Rs 1500
  • Maximum:
    • Single Account Holder: Rs 4.5 Lakhs
    • Joint Account holder: Rs 9 lakhs

Interest Rates for MIS

  • Interest @ 8.50 per cent/ per annum.
  • In addition, bonus equal to five percent (5%) of the deposited amount is payable at the time of repayment on maturity. (No Bonus on Maturity w.e.f. 01.12.2011.)
  • If the interest payable every month is not claimed by a depositor, such interest will not earn any additional interest.

Pass Book :

On opening an account, the depositor will be given a pass book bearing the date of opening of account, the number of his account, his name and address and the amount deposited and also the monthly interest payable along with the date on which the deposit will be due for final payment.

The pass books shall be presented to the post office at the time of collecting interest every month and also at the time of closing the account.

The depositor availing facility of deposits of interest in his savings account under shall present the pass book to the post office at least once in six months for completion of entries.

Premature closure of Monthly Income Scheme:

Premature closure facility is available after one year subject to condition.

  • If the account is closed on or before expiry of three years of opening of such account, an amount equal to two percent (2%) of the deposit shall be deducted and remainder paid to him and
  • If the account is closed after expiry of three years from the date of opening of such account an amount equal to one per cent of the deposit shall be deducted and remainder paid to him.

Closure of account

Account shall be closed after expiry of 6 years, bonus equal to five percent of deposits shall be paid alongwith principle amount.

Nomination option under MIS

  • The depositor may at the time of opening the account under these rules, nominate a person or persons who, in the event of death of the depositor, shall become entitled to payment due on the account.
  • if such nomination is not made at the time of opening the account, it may be
    made by the depositor at any time after the opening the account, but before its closure
    by means of an application, accompanies by the pass book to the Postmaster of the post

Income Tax relief under Monthly Income Scheme:

Income tax relief is available on the interest earned as per limits fixed vide section 80L of Income Tax, as amended from time to time.