Post Office runs several excellent investment schemes. These schemes are giving good returns on investments. Today, we will tell you about the Post Office’s National Savings Monthly Income Scheme. This scheme currently offers an annual interest rate of 7.4%. It gives investors a fixed monthly income.
What Is the Post Office Monthly Income Scheme?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme. It offers a fixed interest rate and monthly income to investors. This scheme is especially popular among retired people and low-risk investors. They want steady income without market ups and downs.
How Much Will You Earn on ₹15 Lakh?
If you invest ₹15 lakh in a joint account under the Post Office MIS scheme, the annual interest is ₹1,11,000. Spread this amount over 12 months. You will earn ₹9,250 per month as interest.
The scheme tenure is 5 years. Over the full term, the total interest income is around ₹5.55 lakh.
Investment Limits
Here are the main rules of this scheme:
| Item | Limit |
|---|---|
| Minimum investment | ₹1,000 |
| Maximum in single account | ₹9 lakh |
| Maximum in joint account | ₹15 lakh |
| Tenure | 5 years |
Note that a person’s total investment across all Post Office MIS accounts cannot exceed ₹9 lakh. For a joint account, the limit is ₹15 lakh.
Interest Rate Can Change
Important: The government reviews interest rates on small savings schemes every quarter. So the rate for new investments may change in the future. The current 7.4% annual rate applies only to this quarter.
Tax Rules
Post Office MIS investment does not qualify for Section 80C deduction under the old tax regime. The monthly interest is fully taxable as per your income tax slab. However, the Post Office does not deduct TDS on MIS interest.
Premature Closure Rules
Here are the rules for closing a Post Office MIS account early:
- Closure is not allowed within 1 year of opening
- Closure between 1 and 3 years: 2% of the deposit is deducted
- Closure between 3 and 5 years: 1% of the deposit is deducted
Who Can Open an Account?
A Post Office MIS account can be opened by:
- Any Indian resident adult
- A joint account with up to 3 adults
- A minor (above 10 years can open independently)
- A guardian on behalf of a minor or incapacitated person
Frequently Asked Questions (FAQ)
Q1. What is the current interest rate on the Post Office Monthly Income Scheme?
The current annual rate is 7.4%, paid monthly. The government reviews rates every quarter.
Q2. How much will I earn monthly on ₹15 lakh?
On a ₹15 lakh joint account at 7.4% annual interest, you will earn ₹9,250 per month. The annual interest is ₹1,11,000.
Q3. What is the maximum I can invest in a single account?
The maximum in a single account is ₹9 lakh. For a joint account, the limit is ₹15 lakh.
Q4. Is Post Office MIS interest taxable?
Yes. The interest is taxable as per your income tax slab. But the Post Office does not deduct TDS.
