The Post Office Monthly Income Scheme (MIS) is designed for investors seeking a consistent monthly income from a relatively simple, low-risk small-savings investment. This scheme provides investors with returns predictability without exposing them to market-linked volatility.
A common question is whether an investor can open more than one MIS account to manage a larger investment or receive monthly income through multiple accounts. What are the rules and limitations related to multiple ?
Are multiple MIS accounts permitted?
Multiple are permitted. However, investors cannot use multiple accounts to circumvent the overall investment ceiling. The rules, as established by India Post, permit an individual to open one or more accounts, subject to the applicable maximum deposit limit across various accounts.
What are key features of Post Office MIS?
The scheme currently offers investors a return of , with interest payable monthly. The rate is subject to periodic review by the government. Fresh updates are generally released by the government for all savings schemes once every quarter.
|
Feature |
Details |
|---|---|
| Interest rate | 7.4% per annum |
| Minimum deposit | ₹1,000 |
| Maximum for the individual | ₹9 lakh across MIS accounts |
| Maximum for joint account | ₹15 lakh |
| Interest payout | Monthly |
| Tenure | 5 years |
| Premature closure | Permitted after 1 year, subject to deduction |
| Joint account | Up to three adults |
Note: For complete features and updates, refer to the official India Post website.
The account can be opened by a single adult or up to three adults jointly. A minor aged 10 years or above, or a guardian on behalf of a minor who is less than 10 years old, is also permitted to open and operate an account on behalf of a minor. Only one deposit is permitted into an ; it must be made in multiples of ₹1,000.
Therefore, this is not a scheme in which investors can make recurring deposits. For example, if you invest ₹3 lakh in an MIS account, this then becomes your investment in the account. You are not allowed to add any additional investments to the account until it matures.
How do multiple MIS accounts work?
An investor can divide the ₹9 lakh investment between two or more MIS accounts. The combined investment across an investor’s MIS accounts cannot exceed the ₹9 lakh threshold for individual investors.
The rules also take into account an investor’s share in a joint account. For a joint account held by two adults, each holder’s share is treated as one-half of the balance. For three adults, it is treated as one-third for calculating the applicable ceiling.
At the current 7.4% interest rate, a ₹9 lakh investment can generate ₹66,600 a year, which translates to ₹5,550 a month, assuming the rate remains unchanged. The monthly interest does not earn additional interest if it is left unclaimed.
MIS has a 5-year tenure. Premature closure is permitted after one year, with a 2% deduction from the investment if the account is closed within three years and a 1% deduction thereafter.
Opening allows investors to plan and organize their investments or income streams; however, it does not increase the permissible investment limit.
Disclaimer: Interest rates and small-savings rules are subject to change. Investors should verify the applicable rate and latest rules with India Post before investing.