Monthly Income Scheme at a glance
| Interest rate | 7.4% a year (October–December 2026), fixed for 5 years |
|---|---|
| Interest paid | Every month, for 5 years |
| Deposit | ₹1,000 minimum, in multiples of ₹1,000 |
| Maximum | ₹9 lakh single, ₹15 lakh joint (up to three adults) |
| Who can open | Resident Indian adults; a guardian for a minor; a minor of 10 or more in their own name |
| Term | 5 years; the deposit is returned at maturity |
| Tax | Interest taxable; no 80C deduction |
| Where to open | Any post office |
Monthly income by deposit
| Deposit | Every month | Over 5 years |
|---|---|---|
| ₹1,00,000 | ₹617 | ₹37,000 |
| ₹3,00,000 | ₹1,850 | ₹1,11,000 |
| ₹5,00,000 | ₹3,083 | ₹1,85,000 |
| ₹9,00,000 | ₹5,550 | ₹3,33,000 |
| ₹15,00,000 (joint) | ₹9,250 | ₹5,55,000 |
At 7.4% a year. Every ₹1 lakh gives ₹617 a month. Try any amount with the MIS calculator.
How the scheme works
You deposit a lump sum once. Interest at the rate fixed on that day is paid every month for five years, into your post office savings account, from where it can be moved to a bank or into a recurring deposit automatically. Interest you leave uncollected earns nothing more. At the end of the five years, the full deposit is paid back.
You can hold several accounts, as long as the total stays within ₹9 lakh (₹15 lakh joint). In a joint account each holder has an equal share, which counts towards their own limit.
Closing the account early
- Within the first year: not allowed.
- After 1 year, before 3: 2% of the deposit is deducted.
- After 3 years, before 5: 1% of the deposit is deducted.
- On the holder’s death: the account is closed and the money paid to the nominee or legal heirs, with interest up to the previous month.
Tax on MIS interest
The monthly interest is added to your income and taxed at your slab rate, under either regime. The deposit gets no deduction under Section 80C. Senior citizens on the old regime can deduct up to ₹50,000 of deposit interest a year.
How to open an MIS account
You need a post office savings account first. Then fill in the MIS form at the post office with your Aadhaar, PAN, a photograph and the deposit (by cheque for larger amounts), and name a nominee. Accounts can be moved between post offices.
MIS compared with the alternatives
- SCSS pays 8.2% quarterly, up to ₹30 lakh, if you are 60 or older.
- The 5-year time deposit pays 7.5% compounded, better if you do not need the income now.
- A bank FD with monthly payout may pay more or less; compare on bank FD rates.
Frequently asked questions
What is the Post Office MIS interest rate for October–December 2026?
7.4% a year, paid every month. The rate on the day you open the account is fixed for the full 5 years.
How much monthly income will ₹9 lakh give in Post Office MIS?
₹5,550 a month at 7.4%, for 5 years, after which the ₹9 lakh is returned. In a joint account with the full ₹15 lakh, it is ₹9,250 a month.
What is the maximum limit in Post Office MIS?
₹9 lakh in single accounts and ₹15 lakh in joint accounts (up to three adults). Your share in joint accounts counts towards your own ₹9 lakh limit.
Can I withdraw from Post Office MIS before 5 years?
Not in the first year. Between 1 and 3 years, 2% of the deposit is deducted; between 3 and 5 years, 1%.
Is Post Office MIS interest taxable?
Yes, at your slab rate under both regimes, and the deposit does not qualify for Section 80C.
Is MIS better than SCSS for senior citizens?
SCSS pays more (8.2%) and allows up to ₹30 lakh, but only quarterly. MIS pays 7.4% every month and is open to everyone. Many retirees use both.
Sources
- National Savings Institute – Monthly Income Account Scheme
- Department of Economic Affairs – small savings interest rates
- India Post – savings schemes
Last checked on 6 October 2026. The rate for new accounts is reviewed every quarter; an account keeps the rate it was opened at.