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Post Office Monthly Income Scheme (MIS) Calculator — FY 2025-26

Calculate your guaranteed monthly income from Post Office MIS at 7.4% p.a. Compare single vs joint accounts, see MIS vs SCSS vs FD for retirees, and plan the optimal combination strategy. Updated for Q4 FY 2025-26 rates.

Max ₹9,00,000 for single account. Min ₹1,000 in multiples of ₹1,000.
%
Current Q4 FY 2025-26 rate: 7.4%. Set quarterly by Ministry of Finance.

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How to Use This Calculator

Monthly Income tab

Enter your deposit amount (up to ₹9,00,000 for a single account) and the current interest rate (7.4% p.a. for FY 2025-26). The calculator shows your guaranteed monthly payout, annual income, total interest over the 5-year tenure, and the principal you receive back at maturity. It also shows the amount you would receive on premature closure after 1 year or 3 years.

Joint Account Benefit tab

Compare three strategies side by side: a single MIS account (₹9,00,000 limit), a joint account (₹15,00,000 limit, up to 3 holders), and the two single accounts strategy where both spouses open separate accounts (₹9,00,000 each = ₹18,00,000 total). See exactly how much more monthly income each strategy generates.

MIS vs SCSS vs FD tab

Enter a total investment amount and compare income from Post Office MIS (7.4%, monthly, ₹9L cap), SCSS (8.2%, quarterly, ₹30L cap, 60+ only), and bank FD (flexible rate, no cap). Toggle SCSS eligibility based on your age. For amounts above ₹30L, the calculator suggests an optimal combo strategy: maximize SCSS first, then MIS, then FD for the remainder.

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The Formula

Post Office MIS uses a simple interest formula with monthly payouts. There is no compounding — interest is paid out monthly and does not earn further interest.

Monthly Income:
Monthly Income = (Deposit × Annual Rate) / 12

Where:
Deposit = Amount deposited in MIS account (₹1,000 to ₹9,00,000 for single)
Annual Rate = Current interest rate (7.4% p.a. for FY 2025-26)
12 = Number of months in a year

Example at maximum deposit:
Monthly Income = (₹9,00,000 × 7.4%) / 12 = ₹66,600 / 12 = ₹5,550/month

Total interest over 5-year tenure:
Total Interest = Monthly Income × 60 months
= ₹5,550 × 60 = ₹3,33,000

At maturity: Principal of ₹9,00,000 is returned in full.
Total payout = ₹9,00,000 + ₹3,33,000 = ₹12,33,000

Premature closure penalties:
Before 1 year: Not allowed
After 1 year but before 3 years: 2% of deposit deducted
After 3 years but before 5 years: 1% of deposit deducted

Unlike FD or PPF, POMIS does not compound interest. The monthly payout is a fixed amount for the entire 5-year tenure (as long as the rate remains unchanged). If the government revises rates, it applies only to new deposits, not existing ones.

Example

Ramesh — 62-year-old retired teacher from Jaipur, deploying ₹39,00,000 retirement corpus

Ramesh retired with ₹39,00,000 in savings. He wants guaranteed monthly income without market risk. His wife Sunita (58) is also eligible for MIS. Here is how they deploy the corpus across SCSS, MIS, and FD for maximum monthly income.

Step 1: SCSS (₹30,00,000 at 8.2%)

Deposit₹30,00,000
Annual income₹2,46,000
Quarterly payout₹61,500
Monthly equivalent~₹20,500
Section 80CYes (up to ₹1.5L)

Step 2: MIS — Ramesh's account (₹9,00,000 at 7.4%)

Deposit₹9,00,000 (single account, max limit)
Monthly income₹5,550
Annual income₹66,600

Step 3: Combined result

Total deployed₹39,00,000
SCSS annual₹2,46,000 (quarterly payout)
MIS annual₹66,600 (monthly payout)
Combined annual income₹3,12,600
Monthly equivalent~₹26,050
Blended return~8.0% p.a.

Ramesh gets ₹26,050/month guaranteed income, government-backed. His SCSS also gives him ₹1,50,000 in Section 80C deduction. If Sunita also opens her own MIS account (₹9,00,000), they add another ₹5,550/month, bringing the household total to ₹31,600/month.

FAQ

The current POMIS interest rate is 7.4% per annum, paid monthly. This rate has been stable since April 2023 and applies to Q4 FY 2025-26 (January–March 2026). The rate is set quarterly by the Ministry of Finance and published via gazette notification. For a deposit of ₹9,00,000, this translates to ₹5,550/month. Note that the rate applies for the tenure of the account — once opened, the rate at the time of opening is locked in for the full 5-year period.
The maximum deposit is ₹9,00,000 for a single account and ₹15,00,000 for a joint account (up to 3 holders). The minimum deposit is ₹1,000, in multiples of ₹1,000. You can open multiple MIS accounts, but the total across all your accounts (including your share in joint accounts) must not exceed the individual limit of ₹9,00,000. For a joint account, each holder's share is assumed equal and counts toward their individual cap.
Yes, MIS interest is fully taxable as "Income from Other Sources" at your income tax slab rate. However, the Post Office does not deduct TDS on MIS interest (unlike bank FDs where TDS applies above ₹40,000/₹50,000). You must declare the interest in your ITR and pay tax accordingly. MIS deposits are NOT eligible for Section 80C deduction. If you want 80C benefits, consider PPF or SCSS instead. Even without TDS, the onus is on the investor to pay tax — non-declaration can attract notice from the Income Tax Department.
Premature closure is not allowed before 1 year. After 1 year but before 3 years, you can close with a 2% penalty on the deposit amount deducted from the principal. After 3 years but before 5 years, the penalty reduces to 1%. For example, closing a ₹9,00,000 account after 2 years means you get back ₹8,82,000 (₹18,000 deducted as 2% penalty), plus whatever monthly interest you already received. At maturity (5 years), the full principal is returned with no penalty. The account cannot be extended — you must close and open a new one.
For retirees, all three serve different purposes. SCSS (8.2%) offers the highest rate and Section 80C benefit, but pays quarterly and requires age 60+ (or 55+ for retired government/defence). Max deposit is ₹30,00,000. MIS (7.4%) pays monthly, has no age restriction, but has a lower cap (₹9,00,000 single) and no 80C. Bank FD (~7.0%) has no deposit cap and flexible tenure, but typically lower rates and TDS applies. The optimal strategy for retirees is to combine all three: maximize SCSS first (highest rate + tax benefit), then MIS (monthly cash flow), then FD for remainder (no cap). Both MIS and SCSS are government-backed (sovereign guarantee), while bank FDs are DICGC-insured up to ₹5,00,000 only.

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