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Post Office Monthly Income Scheme

Post Office MIS Calculator India 2026

Free Post Office Monthly Income Scheme (POMIS) Calculator - Compare FD vs MIS and plan your monthly income.

Government Guaranteed
Monthly Interest Payout
Section 80C Benefits
Age 18+ Eligible
MIS Investment Details
₹1,000 - ₹9L
₹

Five Lakhs rupees

₹1,000₹9L
Current: 7.4%
%

Post office monthly income scheme interest rate updated quarterly by Government

For tax benefit calculation

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MIS Key Benefits

Government Guaranteed

Backed by Government of India with zero risk to principal

Monthly Income

Regular monthly interest payments for steady cash flow

Competitive Returns

Currently offering 7.4% annual returns with monthly payouts

Popular MIS Investment Examples

₹1 Lakh Investment

Monthly Income:₹616.67
Annual Income:₹7,400
Total Interest (5 years):₹37,000
Total Returns:₹1,37,000

₹5 Lakh Investment

Monthly Income:₹3,083.33
Annual Income:₹37,000
Total Interest (5 years):₹1,85,000
Total Returns:₹6,85,000

₹9 Lakh Investment (Max)

Monthly Income:₹5,550
Annual Income:₹66,600
Total Interest (5 years):₹3,33,000
Total Returns:₹12,33,000

*Calculations based on current 7.4% p.a. interest rate. Interest is paid monthly and is taxable.

Post Office MIS Calculation Formulas

Understand the mathematical formulas used to calculate your monthly income from Post Office MIS.

Monthly Payout = Principal Amount × (Annual Interest Rate / 12)

Example:

For an investment of ₹5,00,000 at 7.4% p.a.

5,00,000 × (0.074 / 12)
= ₹3,083.33

Variables:

Principal Amount - The total amount invested in the MIS scheme
Annual Interest Rate - The prevailing annual interest rate for MIS

Total Interest = Monthly Payout × 12 × Tenure (Years)

Example:

For a monthly payout of ₹3,083.33 over 5 years

3,083.33 × 12 × 5
= ₹1,85,000

Variables:

Monthly Payout - The calculated monthly income
Tenure (Years) - The fixed tenure of the MIS scheme (5 years)

Maturity Amount = Principal Amount

Example:

For an investment of ₹5,00,000 (interest withdrawn monthly)

₹5,00,000 (Principal is returned)
= ₹5,00,000

Variables:

Principal Amount - The initial investment amount

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

Post Office MIS Calculator Examples: 1 Lakh, 5 Lakh, 9 Lakh

MIS for ₹1 Lakh

Monthly Income:₹616.67
Annual Income:₹7,400
Total Interest (5 years):₹37,000
Total Returns:₹1,37,000

MIS for ₹5 Lakh

Monthly Income:₹3,083.33
Annual Income:₹37,000
Total Interest (5 years):₹1,85,000
Total Returns:₹6,85,000

MIS for ₹9 Lakh (Maximum)

Monthly Income:₹5,550
Annual Income:₹66,600
Total Interest (5 years):₹3,33,000
Total Returns:₹12,33,000

*Calculations based on current 7.4% p.a. interest rate. Interest is paid monthly and is taxable.

Post Office MIS Interest Rate History (2021-2025)
Financial YearInterest Rate (% p.a.)Monthly Interest on ₹1 Lakh
2025-20267.4%₹616.67
2024-20257.4%₹616.67
2023-20247.4%₹616.67
2022-20236.6%₹550.00
2021-20226.6%₹550.00

Note: Post Office MIS interest rates are reviewed quarterly by the Government of India. The rate increased from 6.6% to 7.4% in April 2023 and has remained stable since then. Rates are subject to change based on government policy.

FD vs MIS: Which is Better?
FeaturePost Office MISBank FD
Interest Rate7.4% p.a. (fixed)7.5-8% p.a. (varies by bank)
Interest PayoutMonthly (fixed)Monthly/Quarterly/Annual/Maturity
TenureFixed 5 yearsFlexible (7 days to 10 years)
Maximum Investment₹9 lakhs (single), ₹1.5 cr (joint)No limit
Section 80C BenefitYes (up to ₹1.5L)Only for 5-year tax saver FD
Interest TaxabilityFully taxableFully taxable
Government BackingYes (100% safe)DICGC insured up to ₹5L
Best ForRegular monthly income seekersFlexible tenure and higher rates

Tip: Choose MIS if you need guaranteed monthly income for expenses. Choose FD if you want flexibility in tenure and potentially higher interest rates. Both are safe investment options.

Important Clarification: When comparing "FD vs MIS", note that Post Office MIS is 100% government-backed with zero risk, unlike Mutual Fund Monthly Income Schemes (MF-MIS) which invest in equities and carry market risk. This calculator is for Post Office MIS only, which is as safe as FD.

When to Choose MIS in India

MIS is Ideal For:

  • Regular Income Seekers

    Those needing monthly income for expenses or retirement planning

  • Risk-Averse Investors

    Those who prefer government-guaranteed returns over market risks

  • Short to Medium Term Planners

    Those comfortable with 5-year lock-in for regular income

  • Tax Benefit Planners

    Individuals seeking Section 80C benefits with monthly income

Consider Alternatives When:

  • Seeking Higher Returns

    Consider equity investments or mutual funds for potentially higher returns

  • Need Liquidity

    Premature withdrawal has penalties; consider liquid funds or savings accounts

  • Tax-Free Interest Needed

    MIS interest is taxable; consider PPF for tax-free interest

  • Senior Citizens (60+)

    SCSS offers higher rates (8.2%) with quarterly payouts for senior citizens

MIS Tax Implications
Tax Benefits
  • Investment: Deduction up to ₹1.5L under Section 80C (single account)
  • Maturity: Principal amount is tax-free at maturity
Tax Considerations
  • Interest: Monthly interest is fully taxable as per income tax slab
  • TDS: 10% TDS deducted if annual interest exceeds ₹50,000
  • Submit Form 15G/15H to avoid TDS if total income is below taxable limit
Withdrawal Terms & Conditions

Premature Withdrawal Rules

  • • After 1 year: Allowed with penalties
  • • 1-3 years: 2% deduction from deposit + 1% less interest
  • • 3-5 years: 1% deduction from deposit + 1% less interest
  • • Before 1 year: Not allowed (except in case of death)

Maturity Withdrawal

  • • After 5 years: Full principal returned without penalty
  • • Payment mode: Below ₹20,000 by cash, above by cheque/transfer
  • • Extension: Not available - account closes at maturity
Nomination & Death Benefits

Importance of Nomination

Nomination is mandatory and can be made for up to 4 individuals. This ensures smooth transfer of funds to your loved ones in case of your demise.

  • Nomination can be changed anytime by submitting prescribed form (fee: ₹50 + GST)
  • In case of death, nominee receives principal + interest accrued till date
  • No penalty for premature closure due to death

Important: Without nomination, legal heirs need to provide succession certificate or legal evidence, which can be time-consuming. Always add a nominee!

How to Open MIS Account

Where to Open

  • • Post Offices (Head Post Office, Sub Post Office)
  • • Authorized Post Office branches
  • • Online through India Post website (where available)

Required Documents

  • • PAN Card (Mandatory for ₹50,000+)
  • • Aadhaar Card
  • • Address Proof
  • • Passport-size photographs (2)
  • • MIS Account Opening Form
  • • Initial deposit (Min ₹1,000)
  • • Nomination Form

Eligibility Criteria

  • • Indian Resident individuals
  • • Age: 18 years and above (no maximum limit)
  • • Single or joint accounts (up to 3 holders)
  • • NRIs cannot open new accounts
  • • HUF/Companies not eligible
Eligibility & Investment Limits

Who Can Invest

  • Indian residents above 18 years
  • Single or joint accounts (up to 3 holders)
  • NRIs, HUFs, Companies, Trusts not eligible

Investment Limits

  • Single Account: ₹1,000 to ₹9,00,000
  • Joint Account: Up to ₹1.5 crores (₹15L per holder)
  • Multiple accounts allowed (within total limit)

MIS Calculator FAQs

Everything you need to know about Post Office Monthly Income Scheme, MIS benefits, and monthly income planning

What is Post Office Monthly Income Scheme (MIS)?

MIS is a government-backed savings scheme that provides regular monthly income to investors. It offers 7.4% per annum interest paid monthly, making it ideal for those seeking steady cash flow. The scheme has a fixed tenure of 5 years and is backed by the Government of India.

What is the current MIS interest rate?

The current MIS interest rate is 7.4% per annum, paid monthly. The rate is reviewed by the Government of India every quarter and is currently competitive with other post office schemes.

Who is eligible to open an MIS account?

Any Indian resident above 18 years can open an MIS account. There is no maximum age limit. The account can be opened in single or joint names (up to 3 account holders). NRIs, HUFs, and companies are not eligible.

What is the minimum and maximum deposit limit for MIS?

The minimum deposit is ₹1,000 and the maximum deposit is ₹9 lakhs for a single account. For joint accounts, the maximum limit is ₹1.5 crores (₹15 lakhs per account holder, up to 3 holders). You can deposit any amount in multiples of ₹1,000 within this range.

How is interest paid in MIS?

Interest in MIS is paid monthly on the 1st of each month. The interest is NOT compounded - it's calculated as simple interest on the principal amount. Interest can be auto-credited to your savings account or collected via cheque from the post office where the account is held.

Can I withdraw money from MIS before maturity?

Yes, premature withdrawal is allowed after 1 year from the date of opening the account. If withdrawn between 1-3 years, a deduction of 2% of the deposit is charged. If withdrawn after 3 years but before 5 years, a deduction of 1% of the deposit is charged. Additionally, you'll receive 1% less interest on the deposit amount for the period held.

What are the tax implications of MIS?

MIS offers tax deduction under Section 80C up to ₹1.5 lakhs per year on the principal invested (if invested in single name). However, the monthly interest earned is fully taxable as per your income tax slab. TDS @ 10% is deducted if annual interest exceeds ₹50,000. The maturity amount (principal) is tax-free.

Can I extend my MIS account after 5 years?

No, MIS accounts cannot be extended after maturity. Unlike SCSS, MIS has a fixed 5-year tenure with no extension option. At maturity, you'll receive the principal amount, and you can reinvest in a new MIS account if desired.

What documents are required to open an MIS account?

Required documents include: Identity proof (Aadhaar card, PAN card, voter ID, passport), Address proof (Aadhaar, utility bills, passport), Passport-size photographs, Age proof (for verification), and KYC documents as per RBI guidelines. PAN is mandatory for investments above ₹50,000.

What happens to the MIS account after the account holder's death?

In case of the account holder's demise, the account can be closed prematurely without any penalty. The nominee or legal heir will receive the principal amount along with interest accrued till the date of death. It's crucial to add a nominee while opening the account. For joint accounts, the surviving account holder can continue with the account or close it.

Can I have multiple MIS accounts?

Yes, you can have multiple MIS accounts as long as the total investment across all accounts doesn't exceed ₹9 lakhs for single accounts or ₹1.5 crores for joint accounts. This allows you to stagger investments and create multiple income streams.

How does MIS compare with other monthly income options?

MIS offers government guarantee and competitive rates (7.4%) compared to bank FDs. However, interest is taxable unlike PPF. For senior citizens, SCSS offers higher rates (8.2%) but pays quarterly. MIS is ideal for regular monthly income needs with capital safety.

What is the MIS for 1 lakh in post office?

If you invest ₹1,00,000 in Post Office MIS at the current 7.4% per annum interest rate, you will receive approximately ₹616.67 per month as monthly income. Over 5 years, you'll earn ₹37,000 in total interest, and your principal of ₹1 lakh will be returned at maturity. This makes it ideal for retirees or those seeking regular monthly income from smaller investments.

What is the interest on 9 lakh MIS in post office calculator?

For ₹9,00,000 investment in Post Office MIS at 7.4% p.a., you will receive approximately ₹5,550 per month as monthly income. Over 5 years, you'll earn ₹3,33,000 in total interest, and your principal of ₹9 lakhs will be returned at maturity. This is the maximum investment limit for a single MIS account. For higher investments, consider joint accounts (up to ₹1.5 crores).

Which is better, FD or MIS?

MIS (Post Office) offers government guarantee and monthly income at 7.4% p.a., making it ideal for regular cash flow needs. Bank FDs offer similar safety but may have slightly higher rates (7.5-8%) and more flexibility in tenure. MIS interest is taxable like FDs, but MIS provides Section 80C benefits (up to ₹1.5L) unlike regular FDs. Choose MIS if you need monthly income; choose FD if you want flexibility in tenure and potentially higher rates. Note: The SERP snippet mentions 'MIS almost always carries some risk as a portion is in equities' - this refers to Mutual Fund Monthly Income Schemes, NOT Post Office MIS which is 100% government-backed.
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