How to use this Post Office MIS calculator
- Enter your deposit, in multiples of ₹1,000. It starts at the ₹9 lakh single account maximum.
- Choose single or joint. A joint account takes up to ₹15 lakh.
- Check the interest rate. It starts at 7.4%, the rate for October–December 2026.
- Open "More options" to compare with a bank FD at a rate you enter, or to pick your tax slab and see what you keep.
The result shows your monthly income, the total interest over 5 years and what you get back at maturity. The table shows the deposit you would get back if you closed the account at the end of each year. The tax figures are estimates using your slab rate plus 4% cess.
How the Monthly Income Scheme works
The Post Office Monthly Income Scheme, officially the National Savings (Monthly Income Account) Scheme, is a 5-year government savings scheme. You make one deposit. Interest is paid every month, starting a month after you deposit, and your deposit comes back at the end of the 5 years. You can have the interest credited to your post office savings account or a bank account.
Payment falls on the same date each month as your deposit. If that date is a Sunday or a holiday, you are paid on the business day before. If you deposit on the 29th, 30th or 31st and the next month has no such date, you are paid on the last day of that month.
Monthly income = D × r ÷ 12 D is the deposit and r is the yearly rate as a decimal. The scheme rounds interest to the nearest rupee. Over the 5 years you receive 60 payments.
Worked example
You deposit the single account maximum of ₹9,00,000 at 7.4%. That is ₹66,600 of interest a year, or ₹5,550 every month. Over 5 years you receive 60 payments, ₹3,33,000 in all. At maturity you get your ₹9,00,000 back.
A bank FD at an example 7%, paying monthly, would give ₹5,250 a month on the same deposit: ₹300 a month less, or ₹18,000 over the 5 years.
Monthly income by deposit
At 7.4% for 5 years:
| Deposit | Account | Monthly income | Interest a year | Total interest |
|---|---|---|---|---|
| ₹1,00,000 | Single | ₹617 | ₹7,404 | ₹37,020 |
| ₹3,00,000 | Single | ₹1,850 | ₹22,200 | ₹1,11,000 |
| ₹5,00,000 | Single | ₹3,083 | ₹36,996 | ₹1,84,980 |
| ₹9,00,000 | Single | ₹5,550 | ₹66,600 | ₹3,33,000 |
| ₹12,00,000 | Joint | ₹7,400 | ₹88,800 | ₹4,44,000 |
| ₹15,00,000 | Joint | ₹9,250 | ₹1,11,000 | ₹5,55,000 |
Two people who each open a single account can deposit ₹9 lakh each. That is ₹18 lakh and ₹11,100 a month in all, more than the ₹9,250 from one joint account.
How much to deposit for the income you need
Work backwards from the income you want: divide the monthly amount by 7.4%, multiply by 12, and round up to the next ₹1,000. At 7.4%:
| Income you want | Deposit needed | Monthly income | Account |
|---|---|---|---|
| ₹2,000 a month | ₹3,25,000 | ₹2,004 | Single |
| ₹3,000 a month | ₹4,87,000 | ₹3,003 | Single |
| ₹4,000 a month | ₹6,49,000 | ₹4,002 | Single |
| ₹5,000 a month | ₹8,11,000 | ₹5,001 | Single |
| ₹7,500 a month | ₹12,17,000 | ₹7,505 | Joint |
Deposit limits for single and joint accounts
Each account takes one deposit of at least ₹1,000, in multiples of ₹1,000. You cannot add to it later, but you can open more accounts within your limit. The limits were raised in 2023:
- Single account: up to ₹9 lakh. The same limit applies to an account opened for a minor or a person of unsound mind.
- Joint account: up to ₹15 lakh, for two or three adults.
- All your accounts together: the same limits apply to the total. Your share of a joint account counts as one half with two holders, or one third with three.
If you deposit more than the limit, the post office refunds the excess, which earns only the Post Office Savings Account rate until then.
Closing the account early
You cannot close the account in the first year. After that you can, but part of your deposit is deducted. The interest you have already been paid is not taken back.
| You close | Deduction from the deposit | You get back on ₹9,00,000 |
|---|---|---|
| In the first year | Not allowed | Not applicable |
| After 1 year, up to the end of year 3 | 2%: ₹18,000 | ₹8,82,000 |
| After 3 years, before maturity | 1%: ₹9,000 | ₹8,91,000 |
| At maturity, after 5 years | None | ₹9,00,000 |
So if you close after 2 years, you will have received ₹1,33,200 of interest and get ₹8,82,000 back, ₹10,15,200 in all. If the account holder dies, the account can be closed and the deposit refunded, with interest up to the month before the refund.
What happens at maturity
The account ends after 5 years, with no extension. You apply to close it and receive your deposit. If you leave it there, it earns only the Post Office Savings Account rate, 4% at present. Interest you don't collect earns nothing extra, so have it paid into a savings account each month. To keep the income going you can open a new account at the rate then in force, which may be higher or lower.
What the income is worth over time
Your monthly income stays the same for 5 years, and your deposit comes back unchanged, so neither keeps up with rising prices. If inflation runs at the RBI's 4% target, ₹5,550 in the fifth year buys about what ₹4,562 buys today, and your ₹9,00,000 at maturity buys about what ₹7,39,734 buys today. The inflation calculator shows this for any amount.
The scheme also gives up compounding. That is fine if you spend the income. If you don't need it, an NSC of the same ₹9,00,000 at 7.7% matures at ₹13,04,127, which is ₹4,04,127 of interest against ₹3,33,000 here, but it pays nothing until the end.
How MIS is taxed
The interest is added to your income and taxed at your slab rate, under both regimes. The deposit doesn't count towards the old regime's ₹1.5 lakh limit. That leaves less to spend than the headline figure:
| ₹9,00,000 at 7.4% | Monthly income | Interest over 5 years |
|---|---|---|
| Before tax | ₹5,550 | ₹3,33,000 |
| 20% slab plus cess | about ₹4,396 | about ₹2,63,736 |
| 30% slab plus cess | about ₹3,818 | about ₹2,29,104 |
The tax rules require tax to be deducted at source (TDS) on post office interest only for notified schemes, above ₹50,000 of interest a year, or ₹1 lakh for senior citizens. Ask your post office whether this applies to your account. Either way, you owe the tax on the interest. See what your full income means with the income tax calculator.
Who can open a Post Office MIS account
- One adult, or up to three adults jointly.
- A minor aged 10 or over.
- A guardian, on behalf of a minor or a person of unsound mind.
You open the account at a post office. It can be moved from one post office to another, and you can name a nominee.
MIS, SCSS or an FD?
If you are 60 or over, or a retiree who qualifies, the Senior Citizens Savings Scheme currently pays more, every quarter, with a higher limit. A bank FD gives you more choice of term, but rates vary by bank. If you don't need the income yet, an NSC compounds your interest instead. For a larger retirement corpus in mutual funds, a SWP can pay a monthly amount, though its returns are market-linked and not guaranteed.
Frequently asked questions
What is the current Post Office MIS interest rate?
How much monthly income will I get from Post Office MIS?
What is the maximum deposit in Post Office MIS?
How much do I need to deposit to get ₹5,000 a month?
Can I close a Post Office MIS account early?
Is Post Office MIS interest taxable?
Post Office MIS or a monthly-payout FD?
Sources and further reading
Independent, official guidance on this topic. Rules differ by country, so check the regulator where you live.
- Monthly Income Scheme interest rate history · National Savings Institute, Ministry of Finance
- Small savings interest rates from 1 October 2026 (SB Order 12/2026) · Department of Posts, Government of India
- Monthly Income Scheme limits (SB Order 16/2023) · Department of Posts, Government of India
- Saving schemes and current rates · India Post
This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.