MIS Post Office Scheme: A Complete Guide to Secure Monthly Income (2025 Update)

The MIS Post Office Scheme, also known as the Post Office Monthly Income Scheme (POMIS), is one of India’s most trusted small-savings options. It offers guaranteed monthly returns with minimal risk, making it ideal for conservative investors, retirees, and those seeking stable income.

In this article, we’ll explore all aspects of the MIS Post Office Scheme — its benefits, eligibility, current interest rate, investment process, and why it remains a popular choice in 2025.

What Is the MIS Post Office Scheme?

The MIS Post Office Scheme is a government-backed savings plan offered through India Post. It allows individuals to deposit a fixed amount and receive monthly interest payouts. Since it is supported by the Government of India, it’s among the safest investment options for regular income seekers.

Key highlights:

• Type: Fixed-income small-savings scheme
• Tenure: 5 years
• Payout: Monthly interest
• Issuer: India Post (Department of Posts)
• Eligibility: Available to both individuals and joint account holders

MIS Post Office Scheme Interest Rate (2025)

As of January–March 2025, the interest rate for MIS Post Office Scheme is 7.4% per annum, payable monthly.
This means if you invest ₹9,00,000 (the maximum limit for a joint account), you will receive around ₹5,550 per month as interest.

Interest rates are revised quarterly by the Ministry of Finance, aligning with market trends and government policy.

Features of the MIS Post Office Scheme

Here are some key features that make the MIS Post Office Scheme a popular choice:

1. Guaranteed Returns: Fixed monthly income with government assurance.
2. Flexible Investment Limits:
   • Minimum deposit: ₹1,000
   • Maximum deposit: ₹9,00,000 (joint account) or ₹4,50,000 (single account)
3. Easy Account Transfer: You can transfer your MIS account from one post office to another across India.
4. Nomination Facility: Nominee can be added anytime during the tenure.
5. Premature Closure: Allowed after 1 year (with a small deduction).

To know more about how the MIS Portal works for Haryana employees, check out our guide on MIS Portal Haryana.

How Does the MIS Post Office Scheme Work?

When you invest in the MIS Post Office Scheme, your principal remains locked for 5 years. You receive monthly interest directly into your linked savings account. After maturity, you can either withdraw the full amount or reinvest it into another MIS or other post office schemes like Senior Citizens Savings Scheme (SCSS) or Post Office RD.

For example:
If you invest ₹3,00,000 at 7.4% interest, you’ll earn approximately ₹1,850 per month for 5 years.

Eligibility Criteria

• Must be an Indian resident.
• Minors aged 10 years or above can open an account (with a guardian).
• Joint accounts can be opened by up to three adults.
• NRIs and HUFs are not eligible.

Documents Required

To open an MIS Post Office account, you’ll need:

• Duly filled Form A (application form)
• Identity proof (Aadhaar, PAN, Passport, etc.)
• Address proof (Electricity bill, Aadhaar, etc.)
• Passport-size photographs

How to Open an MIS Post Office Account?

1. Visit your nearest post office.
2. Collect and fill out Form A.
3. Submit KYC documents and photographs.
4. Deposit the investment amount via cheque or cash.
5. Link your post office savings account for monthly interest credit.

After verification, you’ll receive your account passbook showing all details of your MIS Post Office Scheme.

Taxation Rules

• The interest earned under the MIS Post Office Scheme is fully taxable as per your income tax slab.
• No TDS (Tax Deducted at Source) is applied automatically, but investors must declare the income.
• You can reinvest the monthly interest in other tax-saving options like Post Office Time Deposit or National Savings Certificate (NSC) for better planning.

Who Should Invest in the MIS Post Office Scheme?

The MIS Post Office Scheme is best suited for:

• Retirees seeking steady income
• Homemakers wanting safe monthly returns
• Risk-averse investors
• Guardians investing for minors

It provides predictability and financial security, especially when markets are volatile.

Advantages of the MIS Post Office Scheme

✅ Safety: 100% government-backed.
✅ Regular Income: Guaranteed monthly payout.
✅ Low Entry Barrier: Minimum ₹1,000 deposit.
✅ Joint Holding: Option to invest jointly for higher limits.
✅ Transferability: Account can be easily moved between post offices.

Disadvantages of the MIS Post Office Scheme

❌ No Tax Benefits: Returns are taxable.
❌ No Inflation Protection: Fixed interest may lag behind inflation.
❌ Limited Liquidity: Premature withdrawals incur a penalty.

Despite these, it remains an excellent low-risk option for income stability.

Comparison: MIS Post Office Scheme vs Other Options

Feature	MIS Post Office Scheme	Fixed Deposit	SCSS
Interest Rate	7.4%	6.5–7.25%	8.2%
Tenure	5 years	1–10 years	5 years
Risk	Very Low	Low	Very Low
Tax Benefits	No	Partial (80C for 5-yr FD)	80C available

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