Post Office Monthly Income Scheme (MIS) calculator
The Post Office Monthly Income Scheme pays 7.4% a year, in equal monthly instalments, for 5 years. Enter your deposit to see the monthly amount.
Rules for FY 2026-27 · Checked 24 October 2026
For 5 years, then your ₹9,00,000 comes back.
- That is ₹66,600 a year and ₹3,33,000 over 5 years.
- Interest is paid out each month, not added to the deposit, so it does not compound. Put it into a post office RD if you do not need it.
- Deposit returned₹9,00,000
- Interest over 5 years₹3,33,000
- Interest each month
- ₹5,550
- Interest each year
- ₹66,600
- Interest over 5 years
- ₹3,33,000
- Total received
- ₹12,33,000
MIS interest is taxed at your slab rate, and the deposit does not count for 80C.
Year-by-year table
| Year | Interest that year | Interest so far |
|---|---|---|
| 1 | ₹66,600 | ₹66,600 |
| 2 | ₹66,600 | ₹1,33,200 |
| 3 | ₹66,600 | ₹1,99,800 |
| 4 | ₹66,600 | ₹2,66,400 |
| 5 | ₹66,600 | ₹3,33,000 |
How the Monthly Income Scheme works
- Deposit ₹1,000 to ₹9 lakh in a single account, or up to ₹15 lakh in a joint account of up to 3 adults.
- Interest is paid every month into your post office savings or bank account. It is not added to the deposit, so it does not compound.
- The account runs for 5 years, and the rate on the day you open it stays for all 5. Then the deposit comes back.
The full ₹9 lakh at 7.4% pays ₹5,550 a month, ₹3,33,000 over 5 years. A joint account with ₹15 lakh pays ₹9,250 a month.
Closing early
| Closed | What you lose |
|---|---|
| Before 1 year | Not allowed |
| After 1 year, before 3 | 2% of the deposit |
| After 3 years, before 5 | 1% of the deposit |
If the account holder dies, the account can be closed and the money paid to the nominee or legal heir.
How MIS is taxed
MIS interest is added to your income and taxed at your slab rate. The deposit does not count for 80C.
Over 60? The Senior Citizens’ Savings Scheme pays more, 8.2% against 7.4%, and its deposit counts for 80C. If you don’t need the monthly income, a post office FD or NSC keeps the interest working.
Frequently asked questions
What is the Post Office MIS interest rate now?
7.4% a year for October to December 2026, paid monthly. The government reviews it every quarter, but your account keeps the rate it opened with for 5 years.
How much monthly income does ₹9 lakh give?
₹5,550 a month at 7.4%, for 5 years.
Can I have more than one MIS account?
Yes, but all your MIS deposits together, counting your share of joint accounts, must stay within ₹9 lakh.
What happens after 5 years?
The account matures and you get the deposit back. To keep the income going, open a new account at the rate then in force.
Sources: National Savings Institute (small savings rates), India Post, Department of Economic Affairs (small savings)