Post Office Monthly Income Scheme (PO MIS) is a scheme run by the Indian Post Office. It is also best suited to meet the monthly requirements of retired individuals. Eligibility: Any individual can open a PO MIS account, singly or jointly. Multiple accounts can also be held subject to the overall investment limit. Non-residents and HUFs are not eligible to open an account under this scheme. Investment Limits: Minimum amount required to be invested in this account is INR 1,500 and the maximum amount that can be invested is INR 4,50,000 in case of a single account and INR 9,00,000 in case of a joint account. Rate of Return: The PO MIS account earns an interest of 7.3% per annum payable to the investor at the end of each month. Interest not withdrawn does not earn any interest. A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07 and up to 30.11.2011. No unutilized is payable on the deposits made on or after 1.12.2011. Time Period: This account has a maturity period of 5 years. Tax Treatment: Amount deposited in this account do not enjoy any tax deduction. The interest earned is also taxable. However, no TDS is deducted on the payout. Others:The interest earned on the account can be transferred to another savings account every month. WealthCafe Note: Positives: PO MIS is the most preferred Investment Avenue for those looking for regular assured monthly income. Even SCSS pays out intererst only quarterly. Negatives: The interest earned on the deposit is taxable. The maximum amount a person can deposit is only Rs. 4,50,000 (Rs. 9,00,000 for a joint account). Conclusion: PO MIS should rank very high on your list when planning for investing your funds post your retirement. Just like under SCSS, having the monthly interest transferred to a savings accounts enables you to earn interest on the unutilised amount in the savings account.
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