Post Office Monthly Income Scheme (MIS) calculator
Written and reviewed by Omm · Last reviewed · General information, not investment advice
The Post Office Monthly Income Scheme (MIS) pays interest every month on a lump sum for 5 years. Enter the amount to see your monthly income.
Between 1000 and 900000
Between 1 and 15
Monthly income
₹5,550
Total interest
₹3,33,000
Deposit returned at maturity
₹9,00,000
Rate used
- Period
- October–December 2026 (Q3 FY 2026-27)
- Notice
- F. No. 1/4/2019-NS, 30.09.2026
- Checked
- 12.10.2026
Sources: Office memorandum F. No. 1/4/2019-NS dated 30.09.2026 (republished by TaxGuru) · Indian Bank: interest rates for small savings schemes · Department of Economic Affairs, Budget Division
How the money is calculated
- Interest is paid every month and does not compound: the payout is not added back to the deposit.
- The rate is fixed for 5 years at the rate in force when you open the account. The deposit is returned at maturity.
Monthly income = deposit × rate ÷ 12; total interest = monthly income × 60
A worked example you can check
₹9,00,000 in a single MIS account at 7.4% pays ₹5,550.00 every month, or ₹3,33,000 over 5 years.
Rules at a glance
- Deposit
- ₹1,000 up to ₹9 lakh (single) or ₹15 lakh (joint)
- Term
- 5 years
- Interest
- 7.4% a year, paid monthly
Tax
There is no deduction for MIS, and the interest is taxable. Tax rules are those of the Income-tax Act, 2025, in force from 1 April 2026; check your own position before relying on them.
Frequently asked questions
What is the maximum MIS deposit?
₹9 lakh in a single account and ₹15 lakh in a joint account.
What is the current MIS interest rate?
7.4% a year for accounts opened in October–December 2026 (Q3 FY 2026-27), paid every month.
Is MIS interest taxable?
Yes. There is no tax deduction for MIS, and the monthly interest is taxable.
How much monthly income does Post Office MIS pay per ₹1 lakh?
At 7.4%, every ₹1,00,000 pays ₹617 a month. ₹5,00,000 pays ₹3,083, the single-account maximum of ₹9,00,000 pays ₹5,550, and the joint-account maximum of ₹15,00,000 pays ₹9,250 a month.
Can I close a Post Office MIS account before 5 years?
Early closure is allowed after the first year, with a deduction. India Post states: if closed after 1 year but before 3 years, 2% of the deposit is deducted; after 3 years but before 5 years, 1% is deducted. Rules can change, so confirm at your post office or bank before acting.
Is the MIS interest compounded?
No. The interest is paid out every month and the deposit stays the same. To earn interest on the interest you would have to reinvest the monthly payout yourself, for example in a recurring deposit.
Sources
Rules, rates and definitions on this page come from these official sources. Check the current position there before you decide.
- Ministry of Finance, Department of Economic Affairs · Quarterly notice of small savings interest rates
- India Post · Scheme rules and how to open an account
- National Savings Institute · Small savings scheme rules
- Income Tax Department · Tax on interest and gains, and deductions