Will pension-like earnings continue after the death of a Post Office account holder?

This news is important for those planning to invest in the Post Office Monthly Income Scheme (MIS). If an MIS account holder passes away, does the monthly interest payout continue? Find out the details here.

People often wish to invest a portion of their earnings in avenues that provide a fixed monthly income. There are several investment options available for this purpose, which individuals choose based on their convenience. If you are considering investing in a Post Office scheme, this information is relevant to you.

Before investing in any scheme, have you ever wondered what happens to the money—and how the family receives it—if the account holder passes away? It is essential for investors in the Post Office MIS (Monthly Income Scheme) to be aware of this.

What happens after the account holder's death?

If an individual has invested in the Post Office MIS, there are certain important points to note. In the event of the account holder's death, the deposited amount is paid to the nominee or legal heir in accordance with the rules. However, the claim process must be completed as per regulations. If the account holder passes away without having appointed a nominee, the legal heir can claim the amount following the prescribed rules.

Will the monthly payments continue?

While an investor in the MIS scheme receives monthly interest, these monthly payments do not continue after their death. Following the account holder's death, the payout is made to the nominee or legal heir in accordance with the established rules.

How much can be invested?

A maximum of ₹9 lakh can be invested in the Post Office MIS scheme.
It currently offers an annual interest rate of 7.4%, which is paid out monthly.

You can keep your money invested in this scheme for a period of 5 years.

What happens after the completion of 5 years? If an MIS account holder invests in the scheme for the full five-year tenure, the scheme reaches maturity. Thereafter, interest payments will cease, and you can withdraw the entire amount by filling out a maturity form at the post office. However, if you wish to continue receiving monthly payouts, you can withdraw the funds and open a new MIS account.