Post Office MIS Calculator

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.