Post Office MIS Calculator India 2026

Post Office Monthly Income Scheme (MIS) is a government-backed savings scheme designed specifically for people who need regular monthly income. Think of it as a reliable financial companion that pays you a fixed amount every single month for 5 years, backed by the safety of the Government of India. Currently offering 7.4% per annum, MIS pays interest monthly, making it perfect for retirees, pensioners, or anyone who needs steady cash flow for monthly expenses.

What makes MIS unique is its 100% government guarantee—unlike market-linked investments or even bank deposits (which are insured only up to ₹5 lakhs), your entire MIS principal is absolutely safe. You invest once, receive monthly income for 5 years, and get your full principal back at maturity. For example, if you invest ₹5 lakhs in MIS, you'll receive approximately ₹3,083 every month for 60 months, totaling ₹1,85,000 in interest, plus your ₹5 lakh principal returned at maturity.

The scheme also offers Section 80C tax benefits on your principal investment (up to ₹1.5 lakhs annually), though the monthly interest you earn is taxable as per your income slab. MIS is not about wealth creation or beating inflation—it's about financial stability, predictability, and safety. When you need to budget your monthly expenses and can't afford any risk to your capital, MIS provides that peace of mind along with competitive returns.

Retirees and senior citizens are the primary beneficiaries of MIS. If you've retired and need regular income to supplement your pension or to cover monthly household expenses, MIS provides a reliable solution. The monthly payout can help manage recurring bills like utilities, groceries, medical expenses, or insurance premiums without having to dip into your capital.

Risk-averse investors who prioritize capital safety over high returns find MIS ideal. If you cannot afford to lose even a small portion of your investment—perhaps you're saving for your child's education fees due in 3-4 years, or you've just received a retirement corpus—MIS ensures your money is completely safe while generating steady income. Unlike mutual funds or stocks where values fluctuate daily, MIS guarantees both your principal and your monthly income.

Middle-aged individuals planning for their retirement can use MIS strategically. You can create a ladder of MIS accounts—investing ₹3 lakhs annually for 3 consecutive years creates staggered monthly income streams that mature at different times, providing both liquidity and income over the years. Homemakers looking to invest in their own names benefit from both the monthly income and the Section 80C tax benefits (when investing in single name).

Conservative investors with surplus funds they don't need immediately but want to earn from can park money in MIS. If you've just received a bonus, inheritance, or sold an asset and need time to decide on long-term investments, MIS provides better returns than savings accounts (typically 3-4%) while keeping your money safe and accessible (with penalties after 1 year). This makes it perfect for emergency funds for families who want both safety and some returns.

If you're looking for wealth creation or inflation-beating returns, MIS is not the right choice. At 7.4% per annum, MIS returns barely keep pace with inflation (typically 5-7%). Young investors in their 20s or 30s with long investment horizons should consider equity mutual funds, PPF, or other growth-oriented instruments that can deliver 10-15% annual returns over the long term.

High tax bracket individuals (30% tax slab) might find MIS less attractive because the monthly interest is fully taxable. If your annual MIS interest exceeds ₹50,000, TDS of 10% is deducted automatically. For someone in the 30% bracket, the effective post-tax return drops to around 5.2%, which barely covers inflation. Consider tax-free instruments like PPF (7.1% tax-free) or tax-efficient debt mutual funds if you're in a high tax bracket.

If you need immediate liquidity or flexibility, MIS has limitations. You cannot withdraw before 1 year under any circumstances (except death of account holder). Between 1-3 years, you face a 2% penalty plus reduced interest; between 3-5 years, a 1% penalty plus reduced interest. If you think you might need your money within 1-2 years for emergencies, business needs, or other investments, liquid mutual funds or short-term bank FDs are better options.

NRIs, HUFs, and corporate entities are not eligible for MIS—this is strictly for individual Indian residents. If you're an NRI looking for regular income, explore NRI fixed deposits or mutual fund SWPs instead. Additionally, if you're in a high-growth career phase with increasing income and can handle some risk, diversifying into equity mutual funds through SIPs might serve you better than locking money in MIS at fixed returns.

Understanding MIS tax implications is crucial for accurate financial planning. The principal amount you invest qualifies for Section 80C deduction up to ₹1.5 lakhs per financial year, but only if the account is in single name (joint accounts typically don't qualify, though the first holder may claim based on payment). This can reduce your taxable income and save tax if you're in the 20% or 30% bracket. However, remember that the overall 80C limit includes all investments like PPF, ELSS, home loan principal, life insurance, etc.

The monthly interest you earn is fully taxable as "Income from Other Sources" as per your applicable income tax slab. For instance, on a ₹5 lakh investment earning ₹37,000 annual interest, someone in the 30% tax bracket pays ₹11,100 in taxes, reducing the effective return to around 5.2%. For those in the 20% bracket, tax would be ₹7,400, bringing effective returns to 5.9%. Only those with income below the basic exemption limit enjoy the full 7.4% return tax-free.

TDS (Tax Deducted at Source) of 10% applies if your annual interest exceeds ₹50,000. This means if you invest ₹9 lakhs (maximum limit) earning ₹66,600 annual interest, the Post Office deducts ₹6,660 as TDS and pays you ₹59,940. However, if your total income is below the taxable limit, you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to avoid TDS deduction, subject to conditions.

At maturity, the principal amount returned is tax-free—you only paid tax on the interest over the 5 years. This principal can be reinvested in a new MIS account or other instruments. For tax planning, consider spreading your MIS investments across years to manage the annual interest income and stay within optimal tax brackets. Also, maintain records of 80C claims and TDS certificates (Form 16A) for filing accurate tax returns.

The good news about MIS is that there are no hidden charges for account opening, maintenance, or at maturity. Unlike some bank products with processing fees, annual charges, or exit loads, MIS is completely transparent. Your deposit amount goes entirely towards the investment, and at maturity, you receive the full principal back—no deductions, no surprises.

However, premature withdrawal penalties are significant and worth understanding. If you withdraw between 1-3 years, you lose 2% of your principal plus receive 1% less interest than the MIS rate. On a ₹5 lakh deposit, that's a ₹10,000 deduction plus reduced interest. Between 3-5 years, the penalty is 1% of principal (₹5,000 on ₹5 lakhs) plus the same 1% reduced interest rate. These penalties can eat into your returns significantly if you need money urgently.

Nomination changes after account opening carry a small fee of ₹50 plus applicable GST. While this isn't a huge amount, it's worth knowing if you're planning multiple nomination updates. Duplicate passbook or account statement requests may have nominal charges (typically ₹20-50) depending on the post office.

The biggest "hidden cost" is actually the opportunity cost and inflation erosion. While your principal is safe, at 7.4% returns, you're barely keeping up with inflation. In real terms, your purchasing power may not grow much over 5 years. Additionally, if interest rates rise in the future, you're locked into the current 7.4% rate for the full tenure—new MIS investors would benefit from higher rates while you can't switch without penalties. This isn't a "charge" per se, but it's a cost of the fixed-rate structure you should be aware of.

Yes, premature withdrawal is allowed, but with strict conditions and penalties that make it costly. For the first year after opening your MIS account, withdrawal is completely prohibited—you cannot access your principal under any circumstances except in case of the account holder's death. This 1-year lock-in is mandatory, so ensure you invest only surplus funds you won't need for at least 12 months.

After completing 1 year but before 3 years, you can withdraw your principal, but you'll face a double penalty: (1) 2% deduction from your principal—on ₹5 lakhs, you lose ₹10,000 outright, and (2) Interest calculated at 1% less than MIS rate—instead of 7.4%, you get 6.4% for the period held. Combined, these penalties can significantly reduce your effective returns, making early withdrawal quite expensive.

Between 3 to 5 years, the penalties are lighter but still substantial: (1) 1% deduction from principal—on ₹5 lakhs, you lose ₹5,000, and (2) Same 1% reduced interest rate for the period held. While better than the 1-3 year penalty, this still discourages early withdrawal. The government designed these penalties intentionally to promote long-term saving and discourage treating MIS as a liquid investment.

At maturity (after 5 years), there are absolutely no penalties—you receive your full principal plus all the interest earned over 60 months. Interestingly, unlike SCSS, MIS does not allow extension beyond 5 years. Your account automatically matures, and you must collect your principal and decide on reinvestment. For better planning, mark your maturity date on your calendar and decide 3-6 months in advance whether you'll reinvest in a new MIS account, switch to SCSS (if you're 60+), or explore other options.

The only exception to early withdrawal penalties is the account holder's death. In this unfortunate event, the nominee or legal heir can close the account immediately and receive the full principal plus interest accrued till the date of death—no penalties apply. This makes nomination critically important, which we cover in detail in the next section.

In the unfortunate event of the account holder's death, the MIS account can be closed immediately without any penalty or waiting period. This is a significant benefit—unlike the normal premature closure penalties (2% or 1% of principal plus reduced interest), death-related closure attracts zero penalties. The nominee or legal heir receives the full principal amount plus all interest accrued from the account opening date till the date of death.

If you've added a nominee (which is mandatory), the process is relatively straightforward. The nominee needs to submit the death certificate, claim form, identity proof, and the original MIS passbook to the post office where the account is held. After verification, the post office releases the funds to the nominee, typically within 2-4 weeks. The nominee receives the money as per their relationship and shares (if multiple nominees exist).

For joint accounts, the situation differs. If the account is in joint names (up to 3 holders allowed), the surviving account holders can choose to either continue the account or close it without penalty. If they choose to continue, the account operates normally with the remaining holder(s), and monthly interest payments continue. If they opt to close, they receive the principal plus accrued interest without penalties, similar to the single-holder death scenario.

If there's no nomination and the account holder passes away, the process becomes significantly more complicated and time-consuming. Legal heirs must obtain a succession certificate or legal heir certificate from the civil court, which can take 6-12 months and involve legal fees of ₹20,000-50,000 or more. Additionally, they may need to provide proof of relationship, identity documents, and other paperwork. The post office will not release funds without proper legal documentation establishing heir ship.

For estate planning purposes, understand that MIS balances form part of the deceased's estate and are subject to succession laws (Hindu Succession Act, Muslim Personal Law, etc., depending on religion). The distribution among legal heirs depends on these laws unless there's a valid will specifying otherwise. Having a will that clearly mentions your MIS accounts along with proper nomination can ensure smooth, quick transfer to your intended beneficiaries without legal disputes or delays.

Nomination in MIS is mandatory and can save your family months of legal hassles and thousands in legal fees. When you nominate someone, you're designating them to receive your MIS funds (principal + interest) in case of your demise. You can nominate up to 4 individuals and specify the percentage share each should receive. This flexibility allows you to distribute your MIS investment among your spouse, children, parents, or other loved ones as you see fit.

The critical benefit: with a valid nomination, your nominee can claim the MIS funds by simply submitting your death certificate, identity proof, and claim form. The post office releases funds within 2-4 weeks. Without nomination, your legal heirs must obtain succession certificates from civil court, a process that takes 6-12 months and costs ₹20,000-50,000+ in legal fees, court fees, and documentation charges. Your family may need your MIS funds immediately for expenses, but without nomination, that money remains locked for months.

Important clarification: nomination is not the same as a will. The nominee acts as a trustee—they receive the money on behalf of your legal heirs but must distribute it according to succession laws or your will. For instance, if you nominate your daughter but your will says your MIS should be split equally between your son and daughter, the nominee receives the money but must share it with your son. However, having a nomination ensures quick, hassle-free access to funds, which your legal heirs can then distribute properly.

You can change your nomination anytime during the account tenure by submitting the prescribed form to your post office along with a fee of ₹50 + GST. Life events like marriage, divorce, birth of children, or changes in family circumstances may necessitate updating nominations. It's advisable to review your MIS nominations every 2-3 years or after major life events to ensure they align with your current wishes and family structure.

For minors as nominees, you can nominate someone below 18 years, but you must also appoint a guardian who will receive and manage the funds until the minor reaches 18. The guardian could be a parent, relative, or trusted individual. Upon the minor turning 18, they can claim the funds directly. This provision ensures children's interests are protected while providing flexibility in estate planning.

Opening an MIS account is straightforward and can be done at any post office across India—from major Head Post Offices to small Sub Post Offices in rural areas. First, use our MIS calculator to determine your investment amount based on your monthly income needs. Remember, the minimum deposit is ₹1,000 and maximum is ₹9,00,000 for single accounts and ₹15,00,000 for joint accounts (₹15 lakhs distributed among up to 3 holders).

Visit your nearest post office during working hours (typically 9 AM to 5 PM on weekdays, 9 AM to 1 PM on Saturdays). Carry all required documents (detailed in the next section). Request the MIS Account Opening Form from the counter. Fill in details carefully: your name, address, contact number, investment amount (in multiples of ₹1,000), and nomination details (mandatory). For joint accounts, all account holders must be present with their documents.

Submit the completed form along with your documents and the deposit amount. You can pay via cash (for amounts within permissible limits based on current cash transaction norms), cheque, or demand draft. Some major post offices also accept online fund transfers. The postal staff will verify your documents, check your eligibility, and process your application. You'll receive an MIS passbook on the spot or within a few days, depending on the post office's workload.

Your monthly interest starts accruing immediately from the date of deposit. Interest is credited on the 1st of every month starting from the month following your deposit month. You can choose to have interest auto-credited to your savings account (provide savings account details in the form) or collect it manually via cheque from the post office. Auto-credit is highly recommended for convenience—the money arrives in your bank account automatically every month without you needing to visit the post office.

Online account opening is available in select post offices through the India Post website, though availability varies by region. Check the official India Post website or your nearest post office for online facilities. Even if online opening isn't available, the in-person process is quite quick—most accounts are opened within 30-45 minutes if you have all documents ready.

The document requirements for MIS are standard and based on KYC (Know Your Customer) norms. Identity proof is mandatory—carry any one of: Aadhaar card (most preferred), PAN card, Voter ID, Passport, or Driving License. Aadhaar is increasingly required for linking with financial accounts, so it's best to carry it. You need both original and self-attested photocopy.

Address proof can be the same as your identity proof if it contains your current address (like Aadhaar or Passport). Otherwise, provide: utility bills (electricity, water, gas—not older than 3 months), bank passbook, rent agreement, or ration card. Again, carry original plus self-attested copy. Your address proof should match the address you provide in the MIS application form.

PAN card is mandatory for investments above ₹50,000. This is as per Income Tax regulations for financial transactions. Even if you're investing less initially, it's advisable to provide PAN to avoid issues with TDS and for future account operations. If you don't have PAN, you must submit Form 60 (declaration of non-availability of PAN), though this limits your investment to ₹50,000.

Passport-size photographs—carry 2 recent color photos for single accounts, and 2 photos each for joint accounts (i.e., 4-6 photos total depending on number of joint holders). These should be recent (within 6 months) and clear. Age proof may be requested in some cases, though Aadhaar/Passport typically serve this purpose. For joint accounts, all co-holders must provide their identity, address, PAN, and photos.

Nomination form is mandatory—this is usually part of the MIS account opening form itself. You'll need to provide nominee details: name, address, relationship, age, and identification. If the nominee is a minor, guardian details are also required. For savings account details (if you want auto-credit of monthly interest), carry a cancelled cheque or bank statement showing your account number and IFSC code.

It's advisable to prepare a checklist before visiting the post office: (1) Identity proof original + copy, (2) Address proof original + copy, (3) PAN card original + copy (if investing ₹50K+), (4) 2 passport photos, (5) Cancelled cheque for auto-credit, (6) Nominee details, (7) Cash/cheque/DD for investment amount. Having everything ready ensures your account opens smoothly without multiple visits.

MIS eligibility is quite simple and inclusive. Any Indian resident individual can open an MIS account. You must be at least 18 years old—minors cannot open MIS accounts independently. However, a guardian can open an account on behalf of a minor, and upon the minor turning 18, the account can be transferred to their name. There is no maximum age limit, making MIS accessible to people of all ages from young adults to senior citizens.

Citizenship and residency are strict requirements. Only Indian residents qualify—NRIs (Non-Resident Indians), PIOs (Persons of Indian Origin), and foreign nationals are not eligible to open new MIS accounts. If you're an existing MIS account holder who subsequently becomes an NRI, you can continue your account till maturity but cannot open new accounts or extend tenure. This is a key difference from some other post office schemes like RD or TD which NRIs can access.

Type of account holders: Individuals can open accounts in single name or jointly (up to 3 holders maximum). Joint accounts follow "either or survivor" or "former or survivor" modes, meaning any one account holder can operate the account. However, HUFs (Hindu Undivided Families), trusts, companies, and other entities are not eligible—MIS is strictly for individual investors. This ensures the scheme benefits actual people seeking monthly income, not corporate entities.

Investment limits must be respected. Minimum deposit is ₹1,000, and maximum is ₹9 lakhs for single accounts. For joint accounts, the limit is ₹15 lakhs total across all holders (not ₹9 lakhs per person). You can invest in multiples of ₹1,000 only—deposits like ₹1,500 or ₹2,250 are not accepted. You can have multiple MIS accounts in your name, but the total investment across all accounts cannot exceed ₹9 lakhs (single) or ₹15 lakhs (joint).

Mental capacity is implicitly required—the account holder must be of sound mind to enter into financial contracts. Persons declared insolvent or bankrupt may face restrictions. For persons with disabilities, MIS is fully accessible—post offices are required to provide assistance and accommodations. You can also operate the account through an authorized representative or power of attorney if you're unable to visit the post office personally due to health, disability, or other valid reasons.

Laddering strategy is one of the smartest ways to use MIS. Instead of investing ₹9 lakhs in one account, spread it across multiple years. Invest ₹3 lakhs each in Year 1, Year 2, and Year 3. This creates staggered maturity dates—your first ₹3 lakhs matures in Year 6, second in Year 7, third in Year 8. This provides both regular monthly income throughout and access to principal at different times, reducing the impact of interest rate changes and providing liquidity options.

Auto-credit to savings account is essential for maximizing returns. Instead of collecting monthly interest manually (where it might sit idle in MIS passbook), have it auto-credited to your savings account. That money immediately starts earning savings account interest (typically 3-4%) and is available for immediate use or further investment. Over 5 years, this compounding effect can add thousands to your total returns. Simply provide your savings account details and cancelled cheque when opening MIS.

For tax efficiency, if you're investing with your spouse, consider who is in the lower tax bracket and open the account in their name. The interest gets taxed at their slab rate, potentially saving thousands. For instance, if you're in 30% bracket and spouse is in 5% bracket, having the MIS in spouse's name saves 25% on interest taxation. However, ensure this aligns with your financial planning and legal considerations. Also, claim the Section 80C deduction (up to ₹1.5L) on principal in your ITR.

Submit Form 15G/15H if your total income is below taxable limits to avoid 10% TDS deduction. Many retirees and senior citizens with income below ₹2.5-3 lakhs annually pay unnecessary TDS which they have to claim back while filing returns. Submitting Form 15H (for seniors) or Form 15G (for others) at the start of the financial year ensures you receive the full monthly interest without TDS deductions, improving your cash flow.

Timing your investment around quarter-ends (March, June, September, December) can be beneficial if interest rate revisions are expected. The Government of India reviews post office scheme rates quarterly. If rates are expected to rise, wait for the new rates before investing. Conversely, if rates might fall, invest immediately to lock in current higher rates. Monitor financial news or the Department of Posts website for rate revision announcements.

Combine MIS with other instruments for balanced portfolio. Use MIS for stable monthly income, PPF for tax-free long-term growth, and equity mutual funds for wealth creation. Don't put all your retirement corpus in MIS—allocate based on your risk appetite and time horizon. A sample allocation: 30% MIS for monthly income, 30% PPF/debt funds for stability, 40% equity funds for growth. This balances safety, income, and growth potential.

Keep meticulous records—store all MIS passbooks, deposit receipts, nomination forms, and TDS certificates (Form 16A) safely. These are crucial for claiming tax deductions (80C), reporting interest income in ITR, and for your nominees in case of unforeseen events. Create digital copies and store them securely online as backup. Update your family about MIS accounts and where documents are kept, so they can access funds smoothly if needed.