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How to invest in Post Office Monthly Income Scheme - Business2Business

The monthly income scheme is offered by the post office. Investors can receive a monthly income in the form of interest for the term of the account. The interest rate is set periodically by the government and is a low-risk plan. We discuss account opening considerations and the process below.


Any adult, whether as an individual, group, guardian (on behalf of a minor), or under 10 years of age, can open an MIS account in their name. The MIS account is not available to persons other than natural persons.


The MIS account can be opened with as little as Rs 1,000 and multiples of Rs 100 after that. One can deposit up to Rs 4.5 lakh in a single account and up to Rs 9 Lakh in a joint account. Interest accrues at the completion of one month from the date the account is opened to the expiration date of the account.

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Account opening

An MIS account must be opened by visiting the post office and filling out a joint account opening form. Applicants with KYC documents for identification and proof of address must submit photographs. An initial contribution examination must also be submitted with the application.

Account closure

The MIS account is valid for five years from the date of opening. The account cannot be closed before the end of the year from the opening date. If the account is closed after one year but before 3 years, 2% of the principal will be debited from the account before payment. After 3 years, but 5 years before the opening date, 1% of the loan principal will be deducted before repayment.

Points to note

The aggregate maximum limit of Rs 4.5 lakh cannot be exceeded on all MIS accounts for an individual. However, this does not include the account opened on behalf of the minor.

All common shareholders have a fair share in the investment.

No additional interest is paid if the account holder does not claim the monthly interest.

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