What is the Post Office MIS scheme?

The Post Office Monthly Income Scheme (MIS) is a government-backed savings scheme that provides fixed monthly income on a lump sum investment for 5 years.

What is the current interest rate on MIS?

As of now, the interest rate is around 7.4% per annum, paid monthly. It is subject to periodic revision.

What is the maximum limit for investment in MIS?

The maximum limit is Rs. 9 lakh for a single account and Rs. 15 lakh for a joint account.

Is MIS interest taxable?

Yes, interest earned under MIS is taxable. There is no TDS, but you must declare it in your income tax return.

Post Office MIS Calculator - Monthly Income Scheme

Post Office MIS Calculator

What is MIS?
Formula Used
Example
Benefits
FAQs

What is Post Office MIS?

The Post Office Monthly Income Scheme (MIS) is a safe and government-backed investment option that provides steady monthly interest income. It is ideal for retirees or conservative investors looking for guaranteed income over a 5-year tenure.

Formula Used

Monthly Interest = (Principal x Annual Interest Rate) / 12
Maturity Value = Principal (since interest is paid monthly, not reinvested)

Example

Suppose you invest Rs. 6,00,000 in MIS at an interest rate of 7.4% annually:

Monthly Interest = (6,00,000 x 7.4%) / 12 = Rs. 3,700
Total Income over 5 years = Rs. 3,700 x 60 = Rs. 2,22,000
Maturity Value = Rs. 6,00,000 (initial principal returned)

Benefits

Assured monthly income from a government scheme
Ideal for senior citizens and conservative investors
No market risk or volatility
Can be linked with a savings account for auto-credit

Frequently Asked Questions (FAQs)

Can I withdraw my MIS before maturity?

Yes, but with penalties. Withdrawal is allowed after 1 year with reduced interest or a deduction from principal.

Is there any tax benefit under MIS?

No, MIS does not offer tax deduction under Section 80C.

Can I reinvest the interest automatically?

Interest can be transferred to a savings account or recurring deposit for reinvestment manually.