Post Office Monthly Income Scheme (MIS)

Post Office Monthly Income Scheme (MIS) is best for those who are looking for a safe and constant stream of income. This post office small savings scheme will give you a guaranteed return on your investment. Post Office MIS scheme is very popular among people of rural as well as urban areas.
You can open this account and generate a steady monthly income source. The current post office MIS interest rate 2018 is 7.3% per year. The interest is payable on per month basis. It will be from the date you made the investment and not from start of the month.
POST OFFICE MIS INTEREST RATE 2018
MIS account in post office will give you an interest rate of 7.3% per annum.
The interest rates are fixed periodically. Therefore, make sure to check the current interest rate of post office monthly income scheme, before opening an account.
Where Can You Open an Account?
You can open the account in any of your nearest/ preferred post office.
DOCUMENTS REQUIRED FOR POST OFFICE MONTHLY INCOME SCHEME 
The needed documents for opening an account are:
An account opening form from your nearest post office
Two passport size photographs
Address and identity proof such as the Aadhaar card, passport, driving license, voter ID card, ration card, PAN card or declaration in Form 60 or 61 as per the Income Tax Act, 1961
HOW TO OPEN MIS IN POST OFFICE?
First of all, collect all the documents mentioned above.
Fill up the form carefully while providing the nominee details. Also, don’t forget to carry the original identity proof for verification purpose. Finally, get a witness signature and complete the procedure to get started.
POST OFFICE MONTHLY INCOME SCHEME FEATURES                
An account can be opened by cash/cheque by an individual. In case of cheque, the date of realization in Govt. account will be considered as the date of opening an account.
Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
You can transfer the account from one post office to another.
Nomination facility is available at the time of opening and also after opening of account.
An account can be opened in the name of a minor. A minor of 10 years and above age can open and operate the account.
After attaining majority she/ he has to apply for conversion of the account in her/ his name.
Joint account can be opened by two or three adults. All joint account holders have equal share in each joint account.
You may cpnvert your Single account into Joint and Vice Versa.
From 1.12.2011 onwards, maturity period is 5 years.
POST OFFICE MONTHLY INCOME SCHEME (MIS) TAX BENEFIT
MIS in post office does not offer any tax benefit. And, the monthly interest payout is taxable income for you. However, there is no TDS on the interest amount.
Minimum and Maximum Deposit in Post Office MIS Account
The minimum investment amount is Rs.1,500/- and the maximum limit is Rs.4,50,000/-. You can invest a one time fixed sum and start earning monthly.
POST OFFICE MONTHLY INCOME SCHEME ONLINE PAYMENT FACILITY
This facility is currently available for RD in Post Office through Electronic Clearing Service (ECS). Also, if you have an agent, he or she can use the post office agent portal and do the online payment for you. Information on post office MIS online payment is not yet clear. However, you can ask your post office branch for exact details on this. Furthermore, you may also ask your agent for the availability of online payment mode.
Moreover, you can automate this scheme very easily. For that you need to open a saving bank account and give a request for automatic transfer of MIS interest to recurring deposit account through your savings account.
POST OFFICE MIS ACCOUNT OPENING FORM
You can download post office MIS account opening form from post office website.
FAQS ON POST OFFICE MIS
Can I open post office monthly income scheme online?
No, this facility is not yet available. Therefore, you need to open an account in the post office itself.
However, after opening the account you may opt for the ebanking.
What is the maturity value of post office MIS?
You can use the post office monthly income scheme calculator to calculate maturity amount. Also, the accounts that were opened on or after 8.12.07 and up to 30.11.2011 will enjoy an extra 5% bonus at maturity.
Is post office MIS premature withdrawal possible?
You can prematurely withdraw an amount, only after completing one year period. However, before 3 years it will be at the discount of 2% of the deposit and after 3 years (before maturity) at the discount of 1% of the deposit.
What is the tenure of post office monthly income scheme premature closure?
Premature closure is permissible with the above rules.
What is the maturity period of MIS post office?
Previously it was 6 years. Now it is reduced to 5 years.
When will I receive the interest from monthly income scheme in post office
You will receive the interest on monthly base. The date of a payout will be the date of making the investment and not the starting of every month.
Hope you will find the article useful. Please feel free to share your queries and experiences, if any. Also, don’t forget to share this article with your friends who might want to open an account under Post Office Monthly Income Scheme.