What is a post Office MIS Calculator?
The Post Office Monthly Income Scheme is a 5-year, government-backed deposit offered by India Post that pays out interest every month rather than compounding it — a straightforward income option for anyone who wants a predictable monthly amount from a lump sum, without market risk.
The principal is returned in full at maturity, and the rate is fixed for the full 5-year tenure at whatever was notified on your date of deposit.
How the monthly payout is calculated
Like SCSS, MIS uses simple (non-compounding) interest paid out monthly rather than added back to the principal, so the payout stays level throughout the 5-year term.
Worked example
Deposit ₹9,00,000 — the single-account ceiling — at the current 7.4% rate, and MIS pays out roughly ₹5,550 every month for the full 5-year tenure, totalling roughly ₹3,33,000 in interest over the period. The ₹9,00,000 principal is returned in full at maturity. A joint account, at the higher ₹15,00,000 ceiling, would pay roughly ₹9,250 a month on the same rate.
MIS vs. SCSS — similar mechanics, different eligibility
MIS and SCSS both pay simple, non-compounding interest on a fixed 5-year deposit, but they differ in who can open one and how the payout is timed. MIS has no minimum age — any adult can open an account — and pays monthly, at a somewhat lower rate. SCSS is restricted to those 60 and above (with some exceptions), pays quarterly rather than monthly, and currently carries a meaningfully higher rate. For anyone eligible for both, SCSS’s higher rate generally makes it the better choice for the same purpose; MIS fills the gap for those who want a similar regular-income structure but don’t qualify for SCSS by age.
Frequently asked questions
What is the current MIS interest rate?
The rate is notified at 7.4% per annum for Q2 FY 2026-27 (July–September 2026), paid monthly, fixed for the deposit’s 5-year tenure once invested.
What is the maximum MIS deposit?
The commonly cited ceiling is ₹9 lakh for a single account and ₹15 lakh for a joint account — confirm the current limit at your post office, as scheme limits are periodically revised.
Is MIS interest taxable?
Yes, fully taxable at your income slab rate, though there’s no TDS deducted at source on MIS interest — you’re expected to declare and pay tax on it yourself.
Is there a minimum age to open an MIS account?
No minimum age for adults, and an MIS account can also be opened for a minor, operated by a guardian until the minor turns 18.
Can I close an MIS account before 5 years?
Yes, premature closure is allowed after 1 year, with a penalty deducted from the principal — typically around 2% if closed between 1–3 years, and 1% if closed after 3 years.
What happens to the monthly payout if I don’t withdraw it?
It simply accumulates in your linked savings account rather than being reinvested into the MIS itself — the MIS principal doesn’t compound regardless of whether you withdraw the monthly payout or leave it sitting in your savings account.
Can I have both an MIS and an SCSS account?
Yes — there’s no rule preventing you from holding both simultaneously, subject to each scheme’s own deposit ceiling and eligibility conditions.