Are you looking for a safe, government-backed investment that gives you fixed monthly income? Post Office Monthly Income Scheme (MIS) is one of the most trusted options for Indian investors who want regular cash flow without market risk. In this guide, we explain everything about Post Office MIS — interest rate, eligibility, limits, tax rules — and show you exactly how to calculate your monthly income.
What is Post Office Monthly Income Scheme (MIS)?
Post Office Monthly Income Scheme is a savings scheme offered by India Post, backed by the Government of India. You invest a lump sum amount, and every month you receive fixed interest as income. The principal remains safe and is returned at maturity after 5 years.
This scheme is ideal for retired individuals, homemakers, and anyone who wants predictable monthly income without worrying about stock market fluctuations.
Post Office MIS Interest Rate 2026
Current MIS Interest Rate: 7.4% per annum (January–March 2026)
The interest rate is revised every quarter by the Government of India. The current rate of 7.4% p.a. is paid monthly, meaning you receive 7.4 ÷ 12 = 0.617% of your investment every month as income.
Investment Limits for Post Office MIS
| Account Type | Minimum Deposit | Maximum Deposit |
| Single Account | ₹1,000 | ₹9,00,000 |
| Joint Account | ₹1,000 | ₹15,00,000 |
Note: In a joint account, each holder can hold up to 50% share, so maximum effective deposit is ₹15 lakh at 7.4% per year.
Post Office MIS Calculator — Monthly Income Table
Here is how much monthly income you can earn based on how much you invest:
| Investment Amount | Monthly Income (@7.4%) | Annual Income |
| ₹1,00,000 | ₹617 | ₹7,400 |
| ₹2,00,000 | ₹1,233 | ₹14,800 |
| ₹5,00,000 | ₹3,083 | ₹37,000 |
| ₹9,00,000 (max single) | ₹5,550 | ₹66,600 |
| ₹15,00,000 (max joint) | ₹9,250 | ₹1,11,000 |
Want ₹10,000 per month? You need to invest approximately ₹16,22,000 — which requires a joint account.
How to Calculate Your MIS Monthly Income
The formula is simple:
Monthly Income = (Investment Amount × 7.4%) ÷ 12
Example: If you invest ₹5,00,000:
Monthly Income = (5,00,000 × 7.4%) ÷ 12 = ₹37,000 ÷ 12 = ₹3,083 per month
Use our Post Office MIS Calculator to instantly get your monthly income for any investment amount. No manual calculation needed.
Post Office MIS vs Fixed Deposit — Which is Better?
| Feature | Post Office MIS | Bank FD | Senior Citizen FD |
| Interest Rate | 7.4% p.a. | 6.5–7.25% | 7.0–7.75% |
| Payout | Monthly | Monthly/Quarterly | Monthly/Quarterly |
| Safety | Government Backed | DICGC (up to ₹5L) | DICGC (up to ₹5L) |
| Max Investment | ₹15L (joint) | No limit | No limit |
| Tenure | 5 years | 7 days–10 years | 5 years |
| TDS | No TDS | TDS above ₹40,000 | TDS above ₹50,000 |
Post Office MIS wins on safety, TDS benefit, and competitive interest rate. Bank FDs win on flexibility and no investment cap.
Tax Treatment of Post Office MIS
The monthly interest earned from Post Office MIS is taxable as per your income tax slab. However, there is NO TDS (Tax Deducted at Source) on MIS interest — which means you receive the full amount every month and declare it yourself at the time of filing ITR.
The principal amount deposited does not qualify for Section 80C deduction.
Who Should Invest in Post Office MIS?
- Retired individuals who need regular monthly income to cover living expenses
- Homemakers who want to convert a lump sum into monthly pocket money
- Conservative investors who prefer government-backed safety over higher returns
- Investors who want to avoid TDS on interest income
- People who have received a lump sum from provident fund, gratuity, or inheritance
Premature Withdrawal Rules
You can withdraw your MIS investment before the 5-year maturity, but with penalties:
| Withdrawal Time | Penalty |
| Before 1 year | Not allowed |
| 1–3 years | 2% deducted from principal |
| 3–5 years | 1% deducted from principal |
How to Open a Post Office MIS Account
- Visit your nearest post office with KYC documents (Aadhaar, PAN)
- Fill the MIS account opening form
- Deposit the amount via cash or cheque (minimum ₹1,000)
- Account opens on the same day — monthly income starts from the next month
- Can also be opened online via India Post Payments Bank app if linked
Final Thoughts
Post Office MIS is one of the safest monthly income options in India. With a 7.4% guaranteed return, no TDS, and full government backing, it is ideal for conservative investors who need predictable cash flow. Use our Post Office MIS Calculator to find the exact investment you need for your desired monthly income — and start planning your financial independence today.
Related Calculators: Post Office MIS Calculator | Post Office FD Calculator | SCSS Calculator | SWP Calculator