Post Office Monthly Income Scheme (MIS) Calculator

A fixed amount landing in your account every month, with your deposit kept completely safe - that is exactly what the Post Office Monthly Income Scheme (MIS) is built for.

You deposit money once, and its interest reaches you every month for 5 years. Use the calculator above to check your monthly income instantly, then read the full scheme rules below in simple words.

What Is the Post Office Monthly Income Scheme (MIS)?

It is a Government of India small savings scheme run by India Post. Its official name is the National Savings Monthly Income Account, but most people know it as MIS or POMIS.

The working is simple. Deposit a lump sum once. The government pays interest on it at a fixed rate, and that interest reaches you every month. When 5 years complete, your full deposit is returned.

Your money stays with the government, so there is no market movement in it. The monthly amount is fixed from day one - it will not increase, and it will not decrease.

How to Use This MIS Calculator

Step 1: Pick an amount from the chips or type your own deposit. The amount must be in multiples of ₹1,000.

Step 2: Choose the account type - Single for one person, Joint for accounts held with family members.

Step 3: Read your monthly interest, yearly interest and 5-year total interest in the pink result box. The rate is 7.4% today; you can change it to test future rates.

Post Office MIS Interest Rate - What Is the Current Rate?

MIS currently pays 7.4% per year, and the same rate applies for the October-December 2026 quarter. The rate has stayed stable for some time now.

The government reviews small savings rates every 3 months. But one rule matters most: your account keeps the rate that was running on the day you opened it. If the government changes the rate later, it affects new accounts, not yours.

So if you open an account at 7.4% today, you receive 7.4% for the full 5 years. That certainty is the biggest strength of this scheme.

Remember that this 7.4% works as simple interest paid out monthly, not compound interest. If you want to see how the same amount behaves under both methods, our Interest Calculator shows the difference in one screen.

How Much Can You Deposit in MIS?

• Minimum deposit: ₹1,000, and always in multiples of ₹1,000 (₹1,50,000 or ₹1,52,000, not ₹1,51,000)
• Single account: maximum ₹9 lakh
• Joint account: maximum ₹15 lakh, with up to 3 adults as holders
• In a minor name: a guardian can open the account; the total limit across a minor accounts is ₹3 lakh
• One person can open more than one account, but the combined limit stays the same

Do not deposit above the limit. The excess amount earns no interest and is returned to you. The calculator above also warns you when your amount crosses the limit.

Monthly Interest on Deposits from ₹1 Lakh to ₹15 Lakh

The most useful figure in this table: every ₹1 lakh earns ₹617 a month. Work backwards from your need - if you want a fixed income of about ₹5,000 a month, you need a deposit of roughly ₹8-9 lakh.

Post Office MIS for Senior Citizens

First, clear a common misunderstanding: MIS pays no extra interest to senior citizens. Whether you are 30 or 70, the rate is the same 7.4% for everyone.

Even then, this is one of the most popular schemes among retirees, because after retirement the biggest need is a fixed monthly income, and MIS delivers exactly that without any effort. A deposit of ₹9 lakh bringing ₹5,550 every month, alongside a pension, covers a large part of household expenses.

One honest note: for those above 60, the Post Office also runs a separate scheme, the Senior Citizens Savings Scheme (SCSS), which pays a higher rate than MIS but has its own deposit limits and rules. If you qualify for both, compare the two before deciding.

How to Open an MIS Account

Who can open: any adult resident of India. A minor above 10 years can open and operate an account in their own name, and guardians can open accounts for younger children. NRIs cannot open an MIS account.

Process: visit your nearest Post Office, fill the account opening form, attach Aadhaar and PAN copies and a photograph, and deposit the amount by cash or cheque. You also need a Post Office savings account, because the monthly interest is credited there.

After opening, you receive a passbook. The account can be transferred from one Post Office to another, and you should add a nominee at the time of opening itself.

When and How Is the Interest Paid?

Interest starts after one month from the date of deposit completes, and then arrives every month around the same date. It is credited to your Post Office savings account; with auto-credit set up, it reaches the account on its own, otherwise it is withdrawn through the passbook.

One rule many people miss: interest that you do not withdraw earns no further interest. MIS has no compounding. Money left sitting in the savings account earns only the small savings-account rate. So withdraw the interest every month and spend it or invest it elsewhere - that is the correct way to use this scheme.

A popular way to use it elsewhere: many account holders put the monthly MIS interest straight into a Recurring Deposit, so the interest itself starts earning. The ₹5,000 RD calculation shows how monthly deposits grow over 5 years, and you can test your own monthly amount on the RD Calculator.

Closing Your MIS Account Early

The deduction applies to your deposit, not to the interest - interest you have already received is never asked back. On a ₹9 lakh account, a 2% deduction means a loss of ₹18,000, so deposit only money you will not need for 5 years.

Also avoid the opposite mistake: if the money keeps sitting in the account after 5 years complete, it earns only the 4% savings account rate, not the MIS rate. Note your maturity date and close or re-plan the money on time. The account cannot be extended.

Tax Rules on MIS Interest

• The interest is fully taxable - it is added to your income and taxed at your income tax slab
• No Section 80C benefit on the deposit, unlike a tax-saver FD or PPF
• The Post Office does not deduct TDS on MIS interest - the full interest reaches you, but declaring it in your ITR is your responsibility

In short: the interest arrives in full every month, but you must add it to your tax calculation at the end of the year yourself.

Benefits and Drawbacks of MIS

Benefits:

• Government guarantee - both deposit and interest are fully safe
• Fixed monthly income, with the amount decided on day one
• Rate locked for 5 years - if rates fall later, your income does not fall
• Easy to open and run, with Post Offices available down to small towns

Drawbacks:

• No compounding - interest does not earn interest, so the total 5-year earning stays below an FD
• Closing early costs 1-2% of your deposit
• Interest is taxable and the deposit gets no 80C benefit
• The monthly income does not grow with inflation - ₹5,550 will not buy as much in 5 years as it does today

MIS or FD - Which One Is Better?

The two serve different needs. Need money for monthly expenses? Choose MIS. Want the money to grow untouched for 5 years? Choose an FD or the Post Office Time Deposit.

See the difference in numbers: ₹9 lakh in the 5-year Post Office Time Deposit at 7.5% grows by about ₹4,04,953 in interest through compounding, while the same amount in MIS pays ₹3,33,000 in total interest. The gap of roughly ₹72,000 is the price of compounding. But the Time Deposit pays nothing for 5 years, while MIS pays ₹5,550 every single month.

If you already have an FD in mind, run its numbers on our FD Calculator and compare the maturity value with the monthly income above - the right choice usually becomes obvious from that one comparison.

Disclaimer: This calculator and information are based on the current 7.4% rate as of November 2026. The government can change rates every quarter, though an opened account keeps its rate for the full 5 years. Please confirm the latest rate and rules at your Post Office before opening an account. PihuNow is not a government body, and this page is not investment advice.

Frequently Asked Questions

How much monthly interest do I get on ₹1 lakh in Post Office MIS?

At the current 7.4% rate, a deposit of ₹1 lakh earns ₹617 every month. That is ₹7,404 in a year and ₹37,020 over 5 years. Your full ₹1 lakh deposit is returned when the 5 years complete.

What is the maximum deposit in Post Office MIS?

The maximum is ₹9 lakh in a single account and ₹15 lakh in a joint account. The minimum deposit is ₹1,000, and the amount must always be in multiples of ₹1,000.

What is the Post Office MIS interest rate in 2026?

The MIS interest rate is 7.4% per year for the October-December 2026 quarter. The government reviews the rate every 3 months, but an opened account keeps its opening-day rate for the full 5 years.

Do senior citizens get extra interest in MIS?

No. The MIS rate does not change with age - it is 7.4% for everyone. For those above 60, the Post Office runs a separate Senior Citizens Savings Scheme that pays a higher rate than MIS.

Can I close my MIS account before 5 years?

Not within the first year. After that, closing before 3 years deducts 2% of your deposit, and closing after 3 years deducts 1%. On completing 5 years, the full deposit is returned without any deduction.

Is MIS interest taxable?

Yes. MIS interest is added to your income and taxed at your income tax slab, and the deposit gets no Section 80C benefit. The Post Office does not deduct TDS, so the interest must be declared in your ITR yourself.

When do I get my deposit back in MIS?

Your deposit is returned in full after 5 years. Until then, only the interest is paid every month. If the money stays in the account after maturity, it earns only the 4% savings account rate, so close the account on time.

Who can open a joint MIS account?

Up to 3 adults can jointly hold an MIS account, with a combined limit of ₹15 lakh. A husband and wife holding the account together is the most common case. NRIs are not eligible for this scheme.