Post office monthly income scheme interest rate


26 Dec 2021 | 4 min read

The Post Office Monthly Income Scheme (MIS) is a form of term deposit account provided by using India Post. The MIS scheme will pay interest every month and is acceptable for individuals who are trying to find every day or supplementary earnings from their investments. 

Post Office Monthly Income Scheme Interest Rates 

Given below are the revised interest prices provided on Post Office MIS schemes with impact from 1st May 2021 


Regular rate (per annum ) 

Senior Citizen Rate (per annum ) 

5 years 



The interest rate this is paid at the Post Office Monthly Income Scheme is 6.6% p.a. for an investment period of 5 years. 

The rate of interest paid isn't relevant to senior residents and people who belong to this class can make investments in the Senior Citizens Savings Scheme (SCSS). 

This is a form of investment plan this is provided by using the Department of Posts (DoP), additionally called India Post. Those who would love to put money into Post Office month-to-month earnings schemes can achieve this at any post office of their respective locality. As of one May 2021, the interest rate provided at the Post Office Monthly Income Scheme is 6.6% p.a. 

Features of Post Office Monthly Income Scheme 

  • Low risk: Safe investment that gives assured returns after the maturity period. The risk degree on this scheme is nearly 0%. 
  • 5 years lock-in: Comes with an obligatory lock-in period of 5 years. Investors also can re-make investments in the identical scheme after the maturity period in the event that they want to. 
  • Premature withdrawal: This can be made after paying a penalty fee. 
  • Regular Payouts: Regular payment of interest makes this scheme an appealing investment choice for the ones trying to earn earnings at frequent durations of time. 

Eligibility criteria & Documents Required 

Who can open an MIS account? 

  • Indian citizen 
  • Minimum age of 10 years and above 

Required documents 

  • Account opening form 
  • Passport size photos 
  • Identity and address proof - PAN, Aadhaar, Driving Licence, Passport, Voter ID 

How to open Post workplace MIS account? 

To open a month-to-month earnings scheme, you'll just go to the nearest Post office. Ask for the application form, fill in info and post identification and submit the evidence documents. There isn't any online facility to open this type of account yet. 

The post office financial savings account application form may be downloaded from here - Application form

Given below is the step-by-step process to open a Post Office Monthly Income Scheme: 

  • Step 1: Go to the closest post office and primary open a financial savings account. 
  • Step 2: Ask for an application form and fill in the required info. 
  • Step 3: Submit a photocopy of identification and submit with evidence documents together with passport size photos. 
  • Step 4: Choose a nominee and deposit coins or a cheque. 

Consequences of Premature Withdrawal of the Scheme 

  • A discount of 2% is relevant for untimely withdrawal within 12 months to 36 months of the opening of the account. 
  • A discount of one% is relevant for untimely withdrawal among 36 months to 60 months of the opening of the account. 
  • How Does it Work- POMIS Calculation Work? 

POMIS Monthly Interest = Amount Invested X Annual Interest Rate/12 

For example, Amount Invested is Rs. 5 lakhs. 

  • Annual Interest Rate is 6.6% p.a. 
  • Tenure is 5 years. 
  • The month-to-month interest earned might be Rs.2,750. The overall interest earned for a tenure of 5 years might be Rs.1.65 lakh. 

Frequently Asked Questions 

  • Ques: How is the individual account holder’s share calculated in the case of a joint account? 

Answer: Each joint account holder can have an equal percentage in every joint account. 

  • Ques: What if I don’t need to withdraw the deposit quantity upon the account maturity? 

Answer: In case you don’t withdraw the deposit amount upon maturity, the cash will live in the account and earn an easy interest as in step with the Post Office Savings Account for a duration of years from the account maturity. 

  • Ques: Is this scheme appropriate for senior residents? The above said not for Senior citizens 

Answer: Yes. This is a beneficial scheme for senior residents as they are able to deposit their existing financial savings in the account and earn interest for their month-to-month expenses. 

  • Ques: What occurs to my account if I ought to pass from one metropolis to any other because of work? 

Answer: On the occasion of moving from one metropolis to another, you could without difficulty switch your POMIS account to the Post Office in the modern-day metropolis at no greater cost. 


In the end, POMIS is a great opportunity to earn interest while sitting at home. We hope that you got the information you were looking for. 

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