Summary of the Scheme | |
|---|---|
| Name of Scheme | Post Office Monthly Income Scheme (MIS) Account |
| Benefits | Fixed monthly interest income at 7.4% per annum |
| Beneficiary | Resident Indian individuals |
| Nodal Agency | Department of Posts, Ministry of Communications, Government of India |
| Subscription | Subscribe here to get Update Regarding Scheme |
| Mode of Apply | Online and Offline |
Scheme Introduction: A Brief Overview
The Post Office Monthly Income Scheme (MIS), officially known as the National Savings (Monthly Income Account) Scheme, 2019, is a government-backed small savings scheme that pays a fixed monthly income on a one-time lump sum deposit. Investors deposit their money once, for a fixed 5-year tenure, and the post office pays interest on it every single month for the entire period. The current interest rate is 7.4% per annum, unchanged for the ongoing July–September 2026 quarter, the same rate that has applied since April 2023. It's a scheme retirees, homemakers, and other conservative savers reach for specifically because it offers a predictable second income with no market risk attached.
An account can be opened as a single or joint holding. A single adult can open one alone, while a joint account allows up to three adults. A minor who has attained the age of 10 years can also open and operate an account, and a guardian can open one on behalf of a minor or a person of unsound mind. The minimum investment is ₹1,000, and the maximum deposit limit is ₹9 lakh for an individual account and ₹15 lakh for a joint account.
Monthly interest is the whole point of this scheme, and it becomes payable on completion of one month from the date of deposit, credited either to a Post Office Savings Account or a linked bank account. A nomination facility is available at account opening, and the account can be transferred from one post office to another free of cost. Because the interest rate is notified by the Government of India for each quarter, it can change; the Department of Posts most recently confirmed, via SB Order No. 07/2026 dated 30 June 2026, that the rate stays at 7.4% through September 2026, with the next review due from 1 October 2026.
The maturity period is 5 years. Investors who need their money earlier can apply for premature closure after completing one year, subject to a prescribed deduction: 2% of the deposit if closed on or before three years, and 1% if closed after three years but before five. At maturity, the account holder submits the prescribed application to receive the full deposit along with the accrued interest.
If the account holder dies before maturity, the account is closed and the deposit refunded as per the Government Savings Promotion General Rules, 2018, along with interest up to the month preceding the refund. To open an account, applicants submit the prescribed account-opening and KYC forms along with the required documents at a post office, or online through India Post's e-Banking portal if they already hold a savings account there. The official 2019 Scheme notification, along with the Department of Posts' quarterly rate orders, governs every rule covered above.
Scheme Benefits
- The scheme provides monthly interest income on the deposited amount.
- The current listed interest rate is 7.4% per annum, with interest payable every month.
- Investors can open an account with a minimum deposit of ₹1,000.
- Eligible investors can deposit up to ₹9 lakh in a single account and up to ₹15 lakh in a joint account, subject to the applicable overall investment ceiling.
- The account has a fixed 5-year maturity period.
- Monthly interest can be credited directly to a Post Office Savings Account or bank account.
- The account offers a nomination facility, allowing the depositor to nominate a person to receive the eligible amount in the event of the account holder's death.
- The account can be transferred from one Post Office to another.
- Premature closure is permitted after one year, subject to the applicable deduction of 2% or 1% of the principal amount.
- If the account holder dies before maturity, the account can be closed, and the eligible amount can be paid to the nominee or legal heir according to the applicable rules.
Interest Rate and Deposit Limit
- Interest rate: 7.4% per annum, payable monthly, in force for the July–September 2026 quarter
- Minimum deposit: ₹1,000, and thereafter only in multiples of ₹1,000; only one deposit is permitted per account
- Maximum deposit: ₹9 lakh in a single account; ₹15 lakh in a joint account
- A joint holder's individual share for this ceiling is counted as one-half of the balance (2 holders) or one-third of the balance (3 holders)
- If a deposit accidentally exceeds the applicable ceiling, the post office must refund the excess amount immediately, along with Post Office Savings Account-rate interest for the period it stayed in excess
- Unclaimed monthly interest does not earn any additional interest of its own
- Interest is rounded to the nearest rupee; 50 paise or more rounds up, anything less is dropped
Eligibility Requirements
- The applicant must be a resident citizen of India.
- A single adult can open a Monthly Income Scheme account.
- A joint account can be opened by up to three adults.
- A minor aged 10 years or above can open and operate an account.
- A guardian can open an account on behalf of a minor.
- A guardian can also open an account on behalf of a person of unsound mind, as permitted under the applicable rules.
- An individual can open and operate more than one MIS account, subject to the applicable maximum investment limit.
- No upper age limit and no income criteria apply; MIS is open to any eligible resident, not just senior citizens
- For a joint account, the depositor's share is considered as one-half for two account holders and one-third for three account holders for determining the applicable investment ceiling.
Required Documents
- Duly filled and signed Account Opening Form (Form-1 / AOF)
- 2 recent passport-size photographs
- Copy of Aadhaar card
- Copy of PAN card, or Form 60 if you don't yet have a PAN
- Any one of the following as identity/address proof:
- passport,
- driving licence,
- voter's ID card,
- a NREGA job card signed by a state government officer, or
- a letter issued by the National Population Register
- Nominee details, if you wish to register a nomination at the time of opening the account
- Fresh Account Opening Form and fresh KYC documents, required only when converting a minor's account into an adult account on turning 18
Steps to Apply
Eligible applicants can open a Post Office Monthly Income Scheme account offline by visiting a Post Office and online through India Post's e-Banking portal. Applicants need to submit the prescribed account opening and KYC forms along with the required documents and deposit the amount they want to invest.
How to Apply Offline
- Visit the nearest Post Office where the Monthly Income Scheme account facility is available.
- Obtain and fill out the account opening form and KYC form.
- Provide the required details, including the applicant's name, address, date of birth, Aadhaar and PAN details, wherever applicable.
- Attach the required identity and address proof, PAN/Aadhaar documents and passport-size photographs.
- Choose whether you want to open a single or joint account, as applicable.
- Submit the completed form and documents at the Post Office along with the initial deposit of at least ₹1,000.
- After verification of the application and documents, the Post Office will open the MIS account and issue the account/passbook details.
- Provide the details of the Post Office Savings Account or bank account, wherever required, to receive the monthly interest through the applicable credit facility.
How to Apply Online
- Make sure you hold a Post Office Savings Account with internet banking activated; this is a mandatory prerequisite.
- Register at the India Post e-Banking portal if you haven't already.
- Log in to the India Post e-Banking portal using your credentials.
- Select the option to open a National Savings Monthly Income Account (MIS).
- Enter your deposit amount and nominee/joint-holder details as prompted.
- Confirm the transfer of funds from your linked Post Office Savings Account and submit the request.
- Note down the account details generated once the account is opened.
Premature Closure and Extension of Account
- Withdrawal is not allowed at all before 1 year from the date of opening; this lock-in applies even if you're willing to accept a penalty
- Closed on or before 3 years from opening: 2% of the deposit is deducted, and the remainder is paid to you
- Closed after 3 years but before the 5-year maturity: 1% of the deposit is deducted, and the remainder is paid to you
- No extension is admissible on maturity; the account must be closed; to keep earning at the MIS rate, you need to open a fresh account with the maturity proceeds
- If the account holder dies before maturity, the account is closed, and the deposit is refunded along with interest up to the month preceding the month of refund.
Relevant Links
- Post Office Monthly Income Scheme Guidelines
- India Post Office Scheme Page
- India Post e-Banking portal (for opening/operating an MIS account online)
Contact Information
- India Post Helpline: 18002666868
- IPPB Queries:
- 155299
- 033-22029000
- For account-specific queries, contact or visit your nearest post office branch directly
Frequently Asked Questions
The Post Office Monthly Income Scheme (MIS) is a small savings scheme that allows eligible investors to deposit a lump sum and receive interest every month. The account has a 5-year maturity period.
The MIS interest rate is notified by the Government for the applicable quarter. Currently, the applicable interest rate is 7.4%.
The minimum deposit required to open a Post Office MIS account is ₹1,000, and further deposits must be in multiples of ₹1,000.
An individual can deposit up to ₹9 lakh in an individual account, while the maximum limit for a joint account is ₹15 lakh, subject to the applicable rules.
A single adult, up to three adults jointly, a minor aged 10 years or above, or a guardian on behalf of a minor or a person of unsound mind can open an MIS account.
The Post Office MIS account matures after 5 years from the date of opening.
Yes. An MIS account can be closed prematurely after completion of one year, subject to the applicable deduction from the principal amount.
If the account is closed after one year but on or before three years, 2% of the deposit is deducted. If it is closed after three years but before five years, 1% of the deposit is deducted.
No. Unlike a 5-year Post Office Time Deposit, an MIS deposit does not qualify for any deduction under Section 80C of the Income Tax Act. The interest you earn is fully taxable as per your income tax slab.
No. The Scheme rules state plainly that no extension is admissible for an MIS account. If you don't withdraw the maturity amount, it keeps earning Post Office Savings Account interest (currently 4% per annum) until you close it, but you must open a brand-new MIS account if you want to keep earning at the MIS rate.
Yes, the 1st year is the lock-in period of the scheme and you can withdraw money during this period.
Yes. A minor who has attained the age of 10 years can open and operate an MIS account. A guardian can also open an account on behalf of a minor.
If the account holder dies before maturity, the account can be closed and the deposit can be refunded according to the applicable rules, along with interest up to the month preceding the month in which the refund is made.
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