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What are Monthly Income Schemes (MIS) in India?

The Monthly Income Scheme or MIS offers guaranteed monthly payments with flexibility to suit your goals. MIS allows you to invest a set amount of money each month and receive interest payments in addition.

  • 1,657 Views | Updated on: Apr 03, 2024

In India, Monthly Income Schemes (MIS) are investment plans offered by various agencies, mainly the Post Office Department and some banks, that guarantee a fixed monthly income based on your initial investment.

What is MIS?

If you are looking for a reliable monthly income stream to supplement your earnings or cushion your retirement? Look no further than Monthly Income Schemes (MIS)! These plans offer guaranteed returns every month, offered by the government through the Post Office Department and various banks as Fixed Deposit (FD) schemes.

Features of Monthly Income Scheme

The Monthly Income Scheme (MIS) is not just a guaranteed monthly return scheme but a treasure of features that enhance financial flexibility and peace of mind. Some of those features are:

Unmatched Portability

Your MIS account effortlessly travels with you, transferring free of charge from one post office to another. Whether a job relocation or simply a change of heart, your income stream remains uninterrupted.

Multiple Account Advantage

You can open multiple accounts with each post office deposit, allowing you to segregate funds for different goals or beneficiaries. Think emergency fund, child’s education, or diversified income streams – the choice is yours.

Flexibility at Maturity

With MIS, you can withdraw the entire accrued amount, ensuring a significant financial infusion, or opt for reinvestment to enjoy continued monthly income – the choice is yours, tailored to your evolving needs.

Benefits of MIS

While the guaranteed monthly income is undoubtedly a significant draw of MIS, its benefits extend far beyond a simple paycheck to include:

  • Fixed Monthly Income: Unlike other investments, MIS delivers a predictable monthly payout calculated at a set interest rate (currently around 7.4% per annum). It is like clockwork for your finances!
  • Low-Risk: Backed by the government or established banks, MIS prioritizes capital safety. Think of it as a haven for your hard-earned money, shielded from market uncertainties.
  • Simple & Accessible: No fancy finance knowledge needed! Investing in MIS is straightforward, making it ideal for individuals seeking a hassle-free approach to income generation.
  • Tax Benefits: Under certain conditions, the interest earned on some MIS schemes can be deducted from your taxable income, giving you a further financial boost.

Eligibility Criteria and Documents for Opening MIS Account

The eligibility and documents required for opening a MIS account can vary slightly depending on the provider (Post Office, bank, etc.). However, here is a general overview:


  • Indian resident: You must be a resident of India to open an MIS account.
  • Age: Typically, the minimum age is ten years, and there is no upper age limit. However, some banks may have higher minimum age requirements.
  • Documentation: You must provide valid proof of identity and address documents.

Documents Required

  • Proof of Identity: PAN Card, Aadhaar card, voter ID card, driver’s license or passport
  • Proof of Address: Latest Utility Bill (electricity, water, telephone), Bank Passbook, Aadhaar Card (address section), Voter ID Card or Rent Agreement
  • Additional Documents: Nominee details (If you wish to appoint a nominee, you will need their KYC documents as identity and address) and Minimum Investment Amount: Each scheme has a minimum deposit requirement, typically ranging from ₹ 1,000 to ₹ 9 lakh in single account.

Final Thoughts

Invest in your future with a Monthly Investment Scheme. It is not just a monthly paycheck but a commitment to long-term financial stability and peace of mind. With low risk, simple access, and potential tax benefits, MIS is the ideal investment for individuals who value predictability and security. Let your hard-earned money work for you, month after month, year after year. Choose MIS and enjoy the freedom that financial independence brings.

Key Takeaways

  • You can invest in MIS for reliable monthly earnings backed by the government or banks, shielding your money from market swings.
  • You can withdraw or reinvest your accrued amount at maturity, catering to your evolving financial needs.
  • You can easily Invest in MIS, as it is ideal for beginners seeking hassle-free income generation.
  • These are low-risk and high-reward investments offering predictable returns, capital safety, and potential tax benefits.

- A Consumer Education Initiative series by Kotak Life

Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

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