Post Office MIS Calculator

The Post Office Monthly Income Scheme (MIS) is a government-backed savings scheme offered by India Post that provides a fixed monthly income to investors. It is one of the most popular small savings schemes in India, ideal for retired individuals and those seeking regular passive income. The scheme is backed by the Government of India, making it one of the safest investment options available. Interest is paid out monthly directly to the investor's Post Office savings account, ensuring a steady cash flow.

The current interest rate for the Post Office Monthly Income Scheme is 7.4% per annum, payable monthly, as revised by the Government of India for Q4 FY 2025-26. The interest rate is reviewed and revised every quarter by the Ministry of Finance based on government bond yields. This rate is higher than most bank fixed deposits, making MIS an attractive option for conservative investors. The monthly interest payout equals the annual rate divided by 12, credited directly to your savings account.

The minimum investment in Post Office MIS is ₹1,000, and deposits must be made in multiples of ₹1,000 thereafter. The maximum investment limit is ₹9 lakh for a single account and ₹15 lakh for a joint account (with up to 3 adults). These limits are set by the Government of India and are subject to periodic revision. Exceeding the maximum deposit limit is not permitted, and any excess amount will be refunded with applicable interest at the Post Office savings account rate.

The Post Office MIS has a fixed maturity period of 5 years from the date of account opening. Upon maturity, the entire principal amount is returned to the investor. Premature closure is allowed after 1 year of account opening, but it attracts a penalty: 2% of the deposit is deducted if closed between 1-3 years, and 1% if closed after 3 years but before maturity. The scheme can be extended for a further period of 5 years by submitting an application at the post office.

Any Indian citizen who has attained the age of 18 years can open a Post Office MIS account. A minor above 10 years of age can also open an account in their own name. Non-Resident Indians (NRIs) and Foreign nationals are not eligible to invest in this scheme. Hindu Undivided Families (HUFs) are also not permitted to open MIS accounts. Joint accounts can be held by up to three adults, and a guardian can open an account on behalf of a minor.

The monthly interest in Post Office MIS is calculated by dividing the annual interest rate by 12 and applying it to the principal deposit amount. For example, if you invest ₹5 lakh at 7.4% per annum, your monthly interest will be ₹3,083 (₹5,00,000 × 7.4% ÷ 12). The interest is rounded to the nearest rupee. Our Post Office MIS Calculator helps you instantly compute the exact monthly payout, total interest earned over 5 years, and the effective yield on your investment.

Yes, the interest earned on Post Office MIS is fully taxable as per the investor's income tax slab rate under the head 'Income from Other Sources'. The interest income is not exempt from tax, and no TDS (Tax Deducted at Source) is deducted by the Post Office. However, investors must declare this income in their Income Tax Return (ITR) and pay tax accordingly. Investing in MIS under a joint account does not provide any additional tax benefit; each co-holder is taxed on their share of interest income.

Yes, a Post Office MIS account can be transferred from one post office to any other post office across India free of cost. The transfer request must be submitted in writing at the current post office along with the passbook. The account details, including deposit amount and interest payment instructions, are seamlessly transferred to the new post office. This facility is especially useful for individuals who relocate to a different city or state during the tenure of their investment.