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Estimate your monthly interest payout from the Post Office Monthly Income Scheme. See how much regular income your lump sum investment can generate.
Enter your investment amount and current MIS interest rate
Fill in your investment amount and interest rate to see your monthly income and total earnings.
Interest is fully taxable as per your income tax slab.
MIS pays simple interest on a monthly basis.
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme designed for investors who want a steady monthly income from a lump sum investment. It offers a fixed interest rate of 7.4% per annum, paid monthly, with a tenure of 5 years [citation:1][citation:5].
MIS investments do not qualify for tax deduction under Section 80C. The monthly interest earned is fully taxable as per your applicable income tax slab [citation:4][citation:8].
There is no TDS deducted by the post office on the interest payout. However, you must report the interest income in your income tax return [citation:1][citation:9].
| Parameter | Value |
|---|---|
| Investment Amount | ₹9,00,000 |
| Interest Rate | 7.4% p.a. |
| Monthly Interest | ₹5,550 |
| Annual Interest | ₹66,600 |
| Total Interest (5 years) | ₹3,33,000 |
| Principal at Maturity | ₹9,00,000 |
At 7.4%, the maximum single account investment of ₹9 lakh generates approximately ₹5,550 every month [citation:11]. A joint account of ₹15 lakh generates approximately ₹9,250 monthly [citation:11].
The current interest rate for the Post Office Monthly Income Scheme is 7.4% per annum for the July-September 2026 quarter. Once you open an MIS account, the interest rate applicable at that time remains fixed for the entire 5-year tenure [citation:1][citation:5].
MIS interest is calculated on a simple interest basis and paid monthly. The interest is automatically credited to your linked post office savings account via ECS (Electronic Clearing Service). The monthly payout remains constant throughout the 5-year tenure [citation:8][citation:14].
Any resident Indian adult can open a single or joint account. A joint account can have up to 3 adults. A guardian can open an account on behalf of a minor (10 years or older). Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not allowed to invest in this scheme [citation:8].
Premature closure is allowed after completing one year. If you close after 1 year but before 3 years, a penalty of 2% of the deposit is deducted. If you close after 3 years but before 5 years, the penalty is 1%. The account cannot normally be closed within the first year [citation:2][citation:7][citation:15].
The maximum investment limit is ₹9 lakh for a single account and ₹15 lakh for a joint account. You can open more than one account, but the total deposits across all accounts should not exceed these limits [citation:1][citation:7].
Yes, the monthly interest earned from MIS is fully taxable as per your income tax slab. There is no TDS deducted by the post office, but you must report the interest income in your income tax return. MIS investments do not qualify for Section 80C deduction [citation:4][citation:9].