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Enter deposit details

Account type
₹9,00,000
₹1,000₹15 Lakh

Up to ₹9 lakh in a single account, ₹15 lakh in a joint account, in multiples of ₹1,000.

7.4%
5%10%

Current MIS rate: 7.4% for October–December 2026, fixed for the account's 5 years.

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Your results

Monthly income ₹5,550

₹9,00,000 in the Monthly Income Scheme at 7.4% pays ₹5,550 a month for 5 years, ₹3,33,000 in all, and the ₹9,00,000 comes back at the end.

Income over 5 years

  • Income paid into an RD
  • Income received
Income over 5 years ₹3,33,000
Deposit back at maturity ₹9,00,000

After income tax

Monthly income
₹5,550
Tax at 30% slab + 4% cess
₹1,732
You keep each month
₹3,818

MIS income is taxed at your slab: ₹1,03,896 over the 5 years. The deposit qualifies for no tax deduction.

Pay the income into a 6.7% Post Office RD

RD value after 5 years
₹3,96,080
With your deposit back
₹12,96,080

Before tax. An NSC on the same ₹9,00,000 would mature at ₹13,04,130.

If you close the account early

In the first year
Not allowed
After 1 year, before 3 (2% deducted)
₹8,82,000 back
After 3 years, before 5 (1% deducted)
₹8,91,000 back

The monthly income already paid is yours to keep; the deduction comes off the deposit.

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Don't need the monthly income? See NSC vs MIS →

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Example

₹9,00,000 in the Post Office Monthly Income Scheme at 7.4% pays ₹5,550 a month for 5 years, ₹3,33,000 in all, and the deposit comes back at the end. At the 30% tax slab you keep about ₹3,818 a month.

Year-by-year income

Year Income this year Income so far Value if paid into an RD

Estimate only. The tax figure applies one slab to all the income and ignores surcharge. The RD column assumes each month's income goes into a recurring deposit at the current Post Office RD rate.

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QUICK REFERENCE

Monthly income at 7.4%

What the Monthly Income Scheme pays every month at the current rate of 7.4%, and what is left after tax at the 30% slab. The deposit itself comes back after 5 years.

Post Office MIS monthly income by deposit at 7.4%
Deposit Monthly income After tax, 30% slab Income over 5 years
₹1,00,000₹617₹425₹37,000
₹2,00,000₹1,233₹848₹74,000
₹5,00,000₹3,083₹2,121₹1,85,000
₹9,00,000 (single limit)₹5,550₹3,818₹3,33,000
₹15,00,000 (joint limit)₹9,250₹6,364₹5,55,000

Monthly figures rounded to the rupee. Tax includes 4% cess and ignores surcharge.

HOW IT WORKS

How the Monthly Income Scheme pays you

The Post Office Monthly Income Scheme (MIS, sometimes POMIS) takes a lump sum and pays you interest on it every month for 5 years, then returns the deposit. The interest is simple: it is paid out, not added to the balance, so it does not compound inside the account.

The formula we use

Where: P = Amount deposited  |  r = Yearly rate

Paid every month for 5 years; the deposit comes back at maturity.

On the default example, ₹9,00,000 at 7.4%, that is ₹5,550 a month, ₹66,600 a year and ₹3,33,000 over the 5 years, with the full ₹9,00,000 returned at the end.

Rate, limits and who can open one

The government sets the MIS rate every quarter. For October–December 2026 it is 7.4%, unchanged under the notification of 30 September 2026, and the rate on the day you open the account stays fixed for its 5 years. You can deposit from ₹1,000 in multiples of ₹1,000, up to ₹9 lakh in a single account and ₹15 lakh in a joint account, limits raised from ₹4.5 lakh and ₹9 lakh in the 2023 Budget.

Tax: what you keep

The monthly income is added to your income and taxed at your slab rate, and, unlike NSC, the deposit qualifies for no tax deduction. At the 30% slab plus 4% cess, ₹1,732 of each ₹5,550 goes in tax, leaving ₹3,818 a month; over 5 years that is ₹1,03,896 of tax. If your total income is below the taxable limit, you keep the full amount.

MIS plus RD: make the income earn

Left in a savings account, the monthly income earns little. A common plan is to pay it straight into a Post Office recurring deposit. ₹5,550 a month into a 6.7% RD for 5 years builds up to ₹3,96,080, so with the deposit returned you end with ₹12,96,080. If you do not need the income at all, an NSC on the same ₹9 lakh matures at ₹13,04,130, slightly more, because its higher rate compounds for the whole term. The NSC vs MIS guide compares them in detail.

Closing early

You cannot close the account in its first year. After one year and before three, 2% of the deposit is deducted when you close it; after three years, 1%. On ₹9 lakh that is ₹18,000 or ₹9,000, so you get back ₹8,82,000 or ₹8,91,000. The monthly income already paid stays yours. That makes MIS more flexible than an NSC, which generally cannot be closed early at all.

QUESTIONS & ANSWERS

Post Office MIS calculator — frequently asked questions

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