Post Office Monthly Income Scheme (PO MIS)
Post Office Monthly Income Scheme (MIS) is meant for investors who want to invest a sum amount initially and earn interest on a monthly basis for their livelihood. The scheme is, therefore, more beneficial for retired persons.
Important Changes in the scheme :
- The maturity period reduced from 6 years to 5 years w.e.f. 01.12.2011.
- No maturity bonus is payable w.e.f. 01.12.2011
Salient features of POMIS Accounts
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Any individual singly or jointly with other one or two adults.
A guardian on behalf of minor or a person of unsound mind.
A minor who has attained the age of 10 years.
₹ 4.5 lakhs in single account and ₹ 9 lakhs in joint account.
Where amount is deposited in excess of the specified limit, the depositor shall be requested to withdraw the same. Such excess deposit shall carry the POSB interest rate from the date of deposit till the date of withdrawal.
Any number of accounts can be opened subject to the maximum prescribed limit for deposit.
Six years for accounts opened upto 30th November 2011.
Five years for accounts opened after 1st December 2011.
|Upto 30.11.2011||8.00% p.a. + bonus of 5 % of the deposit amount on maturity after six years)
|01.12.2011 to 31.03.2012||8.20% p.a. (No bonus is payable on accounts opened on or after 01.12.2011.)
|01.04.2012 to 31.03.2013||8.50% p.a.
|01.04.2013 to 31.03.2016||8.40% p.a.
|01.04.2016 to 30.09.2016||7.80% p.a.
|01.10.2016 to 31.03.2017||7.70% p.a.
|01.04.2017 to 30.06.2017||7.60% p.a.
|01.07.2017 to 31.12.2017||7.50% p.a.
|01.01.2018 to 30.09.2018||7.30% p.a.
|01.10.2018 to 30.06.2019||7.70% p.a.
|01.07.2019 to 31.03.2020||7.60% p.a.
|01.04.2020 onwards||6.60% p.a.|
Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.)
No bonus is applicable to any premature closure of the Account.
- With effect from 1st April 2018 (AY 2019-20) Senior Citizens (i.e. Residents aged 60 years or above) are eligible for exemption of interest income from Bank / Post Office deposits (Saving accounts / Time deposits / RD accounts) upto ₹ 50,000/- under Section 80TTB
- Account holder other than Senior Citizens are not eligible for any exemption.
- Non-Resident Indians and HUFs are ineligible to open the account.
- Facility of automatic credit of monthly interest to saving account if accounts are at the same post office.
- Interest not withdrawn do not earn any interest.
- Minors have a separate limit of investment of ₹ 3 lakhs and the same is not clubbed with the limit of guardian.
- No tax deduction at source.
- A single Monthly Income Scheme Account can be converted into joint Account and vice versa.
0.5% w.e.f. 1st December 2011.
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