Post office depository service has a wide assortment of schemes that offer fixed returns on investment. These schemes are all stringed with the benefit of the sovereign guarantee, i.e. this investment avenue is government-backed. Therefore, these schemes are safer investment options compared to equity shares and many fixed-income options.
Post Office Monthly Income Scheme, amongst others such as Post Office Savings Account, Post Office Recurring Deposit, Post Office Time Deposit, is one of the highest-earning schemes with an interest rate of 7.4%.
The interest in this scheme, as the name suggests, is disbursed monthly. This scheme, like other post office schemes, is recognized and validated by The Ministry of Finance.
Post Office MIS Interest Rate 2024 From 01 January 2024, interest rates for Post Office MIS will be 7.4% per annum, payable monthly. |
Here the the significant features of the Post Office Monthly Income Scheme 2024-
The following table demonstrates the maximum investment limit for the Post Office Monthly Income Scheme.
Account Type |
Maximum Limit |
Single Account |
Rs. 9 Lakhs |
Joint Account |
Rs. 15 Lakhs |
The Post Office Monthly Income Scheme's rate of interest is fixed by the Finance Ministry and the Central Government of India. The interest rates are often revised every quarter depending on the returns generated by government bonds of similar tenure.
From 01 January 2024, interest rates for Post Office Monthly Income Scheme will be 7.4% per annum, payable monthly.
The following table includes the current and previous interest rates-
Time Interval |
POMIS Interest Rate (Per Annum) |
From 1st January 2024 |
7.40% |
1st October 2023 - 31st December 2023 |
7.40% |
1st April 2023 - 30th June 2023 |
7.40% |
1st January 2023 - 31st March 2023 |
7.10% |
1st October 2022 - 31st December 2022 |
7.10% |
1st April 2020 – 30th September 2020 |
6.60% |
1st January 2020 – 31st March 2020 |
7.60% |
1st October 2019 – 31st December 2019 |
7.60% |
1st July 2019 – 30th September 2019 |
7.60% |
1st January 2019 – 31st March 2019 |
7.70% |
1st October 2018 – 31st December 2018 |
7.70% |
1st January 2018 – 30th September 2018 |
7.30% |
Opening a Post Office Monthly Income Scheme Account (MIS) is easy and hassle-free. However, to invest in the scheme, you need to have a Post Office Savings Account. After opening a savings account with the Post Office – if you did not already have one – you can adhere to the following POMIS Account Opening Procedure –
You can invest the capital amount through a dated cheque. The date mentioned on the cheque will be considered as the account opening date. The interest earned on the investment will be disbursed one month from the opening date.
The beneficiary can also be nominated after opening the Post Office Monthly Income Scheme in India account.
Here are the criteria for eligibility for MIS Scheme in Post Office-
Here are the penalty regulations applicable to MIS premature closure-
1) Before the completion of one year = Zero benefits
2) Between 1st and 3rd year = The entire deposit is refunded with a 2% penalty.
3) Between 3rd and 5th year = The entire corpus is refunded with a 1% penalty.
There are two major benefits to investing in POMIS. As it is not a market-linked investment scheme and is guaranteed by the government, it is a go-to option for many investors with a low-risk appetite.
These benefits are –
Hybrid funds, comprising both equity funds and fixed income instruments, are a viable option to engage in the stock market, develop a diverse investment portfolio, earn comparatively higher returns and take lower risk compared to equity shares and funds.
Savings Scheme | Rate of Interest | TDS |
Post Office Monthly Income Scheme | 7.4% | No TDS is deducted |
Post Office Recurring Deposit | 6.7% | No TDS is deducted |
Post Office Time Deposit (1,2,3 years) | 6.9%, 7%, 7.10% respectively | No TDS is deducted |
Post Office Time Deposit (5 years) | 7.50% | TDS is deducted |
National Savings Certificate | 7.7% | TDS is deducted |
Senior Citizen Saving Scheme | 8.2% | TDS is deducted |
Public Provident Fund | 7.10% | TDS is deducted |