Post Office MIS Calculator (Monthly Income Scheme)
See how much the Post Office Monthly Income Scheme pays you every month at 7.4%, what you keep after tax, what your money grows to if you reinvest the income in a post office RD, and what you get back if you close the account early.
₹9,00,000 in the Post Office Monthly Income Scheme at 7.4% pays ₹5,550 every month for 5 years, ₹3,33,000 in all, and the ₹9,00,000 comes back at maturity. If you put each month’s income into a post office RD, you have ₹12,96,080 at the end of 5 years instead of ₹12,33,000.
Simple interest, paid into your post office savings account every month; unclaimed interest earns nothing. Interest is taxable at your slab rate and there is no deduction for investing. Checked 2026-11-06.
How much does Post Office MIS pay?
Monthly income = deposit × 7.4% ÷ 12, paid every month for 5 years. The deposit comes back in full at the end.
| Deposit | Every month | A year | Over 5 years | Monthly after tax at 30% |
|---|---|---|---|---|
| ₹1 lakh | ₹617 | ₹7,400 | ₹37,000 | ₹424 |
| ₹2 lakh | ₹1,233 | ₹14,800 | ₹74,000 | ₹849 |
| ₹3 lakh | ₹1,850 | ₹22,200 | ₹1,11,000 | ₹1,273 |
| ₹5 lakh | ₹3,083 | ₹37,000 | ₹1,85,000 | ₹2,121 |
| ₹9 lakh (single maximum) | ₹5,550 | ₹66,600 | ₹3,33,000 | ₹3,818 |
| ₹15 lakh (joint maximum) | ₹9,250 | ₹1,11,000 | ₹5,55,000 | ₹6,364 |
The first payment comes a month after you open the account. For ₹10,000 a month you would need about ₹16.22 lakh, more than one person’s limit.
What is the Post Office MIS interest rate?
7.4% a year for October to December 2026, unchanged since 1 April 2023. The Finance Ministry reviews it every quarter, but your account keeps its opening rate for 5 years:
| Account opened | Rate | ₹9 lakh pays a month |
|---|---|---|
| From 1 April 2023 | 7.4% | ₹5,550 |
| January to March 2023 | 7.1% | ₹5,325 |
| October to December 2022 | 6.7% | ₹5,025 |
| April 2020 to September 2022 | 6.6% | ₹4,950 |
Single and joint limits
₹9 lakh for one person, across all their single accounts and their share of joint accounts; ₹15 lakh in one joint account of 2 or 3 adults. Each holder’s share of a joint account is the deposit divided equally among them.
- A couple, most income: two single accounts of ₹9 lakh each, ₹18 lakh in all, pay ₹11,100 a month, more than one ₹15 lakh joint account (₹9,250).
- A joint account of ₹15 lakh with 2 holders uses ₹7.5 lakh of each person’s limit, leaving ₹1.5 lakh each for single accounts.
- Minimum ₹1,000, in multiples of ₹1,000, in one go; you cannot add to an account, but you can open more within the limit.
Make the income grow: POMIS plus a post office RD
POMIS interest does not compound. If you do not need the income, put it into a post office recurring deposit every month: ₹9 lakh then grows to about ₹12.96 lakh in 5 years instead of ₹12.33 lakh.
₹5,550 a month in an RD at 6.7% for 60 months is worth ₹3,96,080, against ₹3,33,000 of plain interest: ₹63,080 more. That works out to about 7.6% a year compounded, close to the 7.7% of an NSC, which you could choose instead if you never needed the monthly income. Work out the RD in the Post Office RD Calculator.
Closing Post Office MIS early
Not allowed in the first year. After that, 2% of the deposit is deducted up to 3 years and 1% after 3 years; interest already paid is not taken back.
| ₹9 lakh closed after | Deduction | Deposit returned | Interest received till then |
|---|---|---|---|
| 1 year | ₹18,000 (2%) | ₹8,82,000 | ₹66,600 |
| 2 years | ₹18,000 (2%) | ₹8,82,000 | ₹1,33,200 |
| 3 years | ₹9,000 (1%) | ₹8,91,000 | ₹1,99,800 |
| 4 years | ₹9,000 (1%) | ₹8,91,000 | ₹2,66,400 |
If the holder dies, the account is closed and the deposit paid to the nominee or legal heirs, with interest up to the month before.
Is Post Office MIS interest taxable?
Yes, at your slab rate, every year. There is no deduction for investing in POMIS in either regime. Retirees in the new regime often pay no tax at all: taxable income up to ₹12 lakh is tax-free with the rebate, and ₹66,600 of POMIS interest is well within it. In the old regime, those aged 60 or more can deduct up to ₹50,000 of interest on deposits, including POMIS. TDS rules for interest can apply once your interest from the post office crosses the yearly threshold; if your tax is nil, file Form 121 to avoid it.
POMIS vs SCSS, bank FD and NSC
| Option | Rate now | Pays | Limit | Who |
|---|---|---|---|---|
| Post Office MIS | 7.4% | Monthly | ₹9 lakh (₹15 lakh joint) | Any resident adult |
| Senior Citizens Savings Scheme | 8.2% | Quarterly | ₹30 lakh | 60+ (55+ retirees) |
| NSC | 7.7% | At maturity (compounded) | No limit | Any resident |
| Bank FD, monthly payout | Bank’s rate | Monthly | ₹5 lakh insured per bank | Anyone |
If you are 60 or more, fill the Senior Citizens Savings Scheme first: it pays 8.2% on up to ₹30 lakh. POMIS suits anyone younger who wants a fixed monthly income backed by the government.
When to use a different calculator
- Aged 60 or more? Use the SCSS Calculator.
- Reinvesting the income monthly? Use the Post Office RD Calculator.
- A bank deposit with monthly interest? Use the FD Calculator.
- Monthly income from mutual funds instead? Use the SWP Calculator.
Sources
- India Post: Post Office Savings Schemes (Government of India)
- National Savings Institute: small savings schemes (Ministry of Finance)
- Small savings interest rates for October–December 2026 (Free Press Journal)
- Post Office Monthly Income Scheme: rate history, limits and withdrawal rules (ClearTax)
This is general information, not tax or investment advice. See how we check rates and our corrections log.
