Finance · Free tool
Post Office MIS Calculator
Monthly Income Scheme: deposit a lump sum, receive monthly interest at 7.4% for 5 years. Max ₹9 lakh single, ₹15 lakh joint.
Max ₹9L single / ₹15L joint.
How MIS payouts work
Post Office MIS is a 5-year scheme paying simple interest monthly — not annually compounded. Monthly payout = Deposit × 7.4% ÷ 12. Interest credits to your post-office savings account on the same date each month. Principal returns intact at the end of 5 years. Limits: ₹9 lakh single, ₹15 lakh joint (revised from ₹4.5L / ₹9L in April 2023). Premature withdrawal allowed after 1 year with a 1–2% penalty.
Worked example
Deposit ₹9,00,000 (single, max limit). Monthly interest = 9,00,000 × 7.4% ÷ 12 = ₹5,550 credited every month for 60 months. Over 5 years: ₹3,33,000 total interest + ₹9,00,000 principal back. Interest is fully taxable as “Income from Other Sources” (no TDS, but you must declare it); at the 30% slab the post-tax monthly in-hand is ~₹3,885. A senior citizen using SCSS at 8.2% on the same ₹9L instead earns ₹6,150/month before tax — usually a better choice if you're 60+.
When to use this
- Retirees needing a sovereign-backed monthly income stream alongside pension and SCSS
- Parents parking child's education corpus 4–5 years before fees start, with payouts going to a parallel SIP
- Spouse / parent in lower tax slab routing family savings for tax efficiency (use joint account thoughtfully — clubbing rules apply on the contributor's share)
Compare with the SCSS Calculator (8.2% senior citizens), NSC (7.7% cumulative, 5-year, 80C-eligible) or the FD Calculator for bank alternatives.
FAQ
Is Post Office MIS interest taxable?
Yes, fully taxable at slab rate. No TDS by the post office, so report the monthly interest in your ITR. The principal at maturity is not taxable.
Can I premature close MIS?
Yes, after 1 year. Penalty: 2% of deposit if closed between 1-3 years; 1% between 3-5 years. Closure before 1 year is not allowed.
Can MIS be a joint account?
Yes, up to 3 joint holders. The ₹15 lakh cap applies to the joint account; individual cap is ₹9 lakh per single account. Useful for spouses to combine the cap.