Post Office Monthly Income Scheme (PO MIS) account can be opened in the nearest post office branch. A depositor can open one or more than one POMIS account (subject to meet the condition that deposits in all accounts taken together shall not exceed rupees 4.5 lakh in single account and rupees 9 lakh in joint account).
Things you Need
1- PO MIS Account Opening Form
2- Deposit Slip
Things you should Know
1- The account holder/depositor can make only one deposit in the account in multiple of one thousand rupees, not exceeding rupees 4.5 lakh in case of single account and rupees 9 lakh in case of joint account.
2- No withdrawal shall be permitted before the expiry of a period of five years from the date of opening of an account. Only exception is premature closure of account.
3- Nomination is allowed at the time of opening of account or during the period of account.
4- Interest of PO MIS deposit is 8.5%. The interest shall be payable monthly to the depositor on completion of a month from the date of deposit.
5- Closure of POMIS Account at Maturity
The account holder has to make a request of account closure to the post office, on or after expiry of five years of the deposit. The account holder has to submit following documents –
a) Written application stating the reason of closure
b) Filled Withdrawal Form
c) The PO MIS Account Passbook
6- Premature Closure of Account
The depositor may be permitted to withdraw the deposit and close the account any time after expiry of a period of one year from the date of opening of POMIS account, subject to following condition –
a) If the account is closed on or before expiry of three years of opening of such account, an amount equal to two percent of the deposit shall be deducted and remainder paid to him and,
b) If the account is closed after expiry of three years from the date of opening of such account an amount equal to one per cent of the deposit shall be deducted and remainder paid to him.
7- The interest earned is fully taxable. There is no tax deducted at source (TDS). The investment in PO MIS is exempt from wealth tax.
8- You can reinvest the PO MIS interest amount, every month in the same postoffice Saving Bank Account or postoffice R.D. Account. With this the net return works out to approx. ~ 9.0% (i.e. interest earned out of MIS scheme + R.D. interest).