- 7.4%Interest a year
- Every monthInterest paid
- ₹9 LMost in one name₹15 L in a joint account
- 5 yearsTerm
What is the Post Office Monthly Income Scheme?
The Post Office Monthly Income Scheme is a savings scheme of the Government of India. It runs under the Post Office Monthly Income Account Scheme, 2019, and you can open it at any post office. People often call it MIS or POMIS.
You put in a lump sum once. The post office pays you interest on it every month, so it works like a fixed monthly income. After 5 years, you get your full deposit back.
- Step 1Deposit oncePut in ₹1,000 to ₹9 L at a post office.
- Step 2Get interest every month7.4% a year, paid into your savings account.
- Step 3Get your money backAfter 5 years, the full deposit is returned.
Example: Sunita, 48. She puts ₹9,00,000 in Post Office MIS at 7.4%. Every month, interest comes into her post office savings account. After 5 years, her ₹9,00,000 comes back.
- Every month
- ₹5,550
- In a year
- ₹66,600
- Interest in 5 years
- ₹3,33,000
Post Office MIS interest rate 2026: 7.4%
The rate is 7.4% a year for October to December 2026. The Ministry of Finance reviews it every 3 months, but the rate on the day you open your account stays the same for all 5 years.
- Interest is paid at the end of every month, starting one month after you open the account.
- It goes into your savings account at the same post office. You can also link it to a recurring deposit, or take it in cash at the branch.
- It is simple interest. It does not compound: interest you leave unclaimed does not earn any extra interest in the MIS.
| Period | Post Office MIS rate |
|---|---|
| From April 2023 | 7.4% |
| From January 2023 | 7.1% |
| From October 2022 | 6.7% |
| From April 2020 | 6.6% |
See every past rate on the Post Office MIS interest rate page.
How much monthly income can you get from Post Office MIS?
Monthly income = deposit × 7.4% ÷ 12. Amounts above ₹9 L need a joint account.
| Deposit | Every month | In a year | In 5 years |
|---|---|---|---|
| ₹1,00,000 | ₹617 | ₹7,400 | ₹37,000 |
| ₹2,00,000 | ₹1,233 | ₹14,800 | ₹74,000 |
| ₹5,00,000 | ₹3,083 | ₹37,000 | ₹1,85,000 |
| ₹9,00,000 | ₹5,550 | ₹66,600 | ₹3,33,000 |
| ₹12,00,000 | ₹7,400 | ₹88,800 | ₹4,44,000 |
| ₹15,00,000 | ₹9,250 | ₹1,11,000 | ₹5,55,000 |
If you do not need the income now: you can move each payment into a 5-year post office RD at 6.7%. Sunita's ₹5,550 a month would then grow to about ₹3,96,080, against ₹3,33,000 if she takes it as cash.
For your own amount and tax, use the Post Office MIS calculator.
Post Office MIS eligibility: who can open an account?
- Yes: Any resident Indian adult, in their own name
- Yes: Up to 3 adults together, as a joint account
- Yes: A parent or guardian, for a minor or a person of unsound mind
- Yes: A minor aged 10 or more, in their own name
- No: NRIs (Non-Resident Indians)
- No: HUFs (Hindu Undivided Families)
- No: Trusts, companies and other organisations
A minor's account has its own limit, separate from the parent's. When the minor turns 18, they must give their own KYC documents and change the account to an adult account.
Post Office MIS limit: single and joint accounts
- Amount: at least ₹1,000, in multiples of ₹1,000.
- Single account: up to ₹9,00,000.
- Joint account: up to ₹15,00,000. Every holder has an equal share.
- Your total limit: all your MIS accounts together, including your share of joint accounts, cannot be more than ₹9,00,000. You can hold more than one account within this limit.
- One deposit per account: you cannot add money later. To invest more, open another account.
- Extra deposit by mistake: any amount above the limit is refunded, with only Post Office savings interest on it.
- Single to joint: a single account can be changed to a joint account, and a joint account to a single account, by applying at the post office.
Example: A couple's joint account. Ravi and Meena open a joint MIS account with ₹15,00,000. Each one's share is ₹7,50,000. So each of them can still put up to ₹1,50,000 in a single account of their own.
- Joint deposit
- ₹15,00,000
- Every month
- ₹9,250
- Interest in 5 years
- ₹5,55,000
How to open a Post Office MIS account: documents and steps
- Step 1Visit a post officeAny post office. Keep a post office savings account there for the monthly interest.
- Step 2Fill in the formThe MIS account opening form, also on the India Post website.
- Step 3Give KYC documentsAadhaar, PAN and passport-size photos.
- Step 4Pay the depositBy cash or cheque, in multiples of ₹1,000.
- Step 5Add a nomineeSo your family gets the money easily.
- Step 6Get your passbookProof of your account and deposit.
| Who | Documents |
|---|---|
| Everyone | Filled account opening form, Aadhaar, PAN, passport-size photos |
| Joint account | KYC documents of every holder |
| Account for a minor | The minor's birth certificate, and the KYC documents of the parent or guardian |
| Monthly interest | Details of your post office savings account (open one at the same time if you do not have it) |
Post Office MIS premature closure rules
You can close MIS early, but not in the first year, and part of your deposit is cut. The monthly interest already paid is not taken back. For a ₹5,00,000 deposit:
- To close, give the closure form with your passbook at the post office.
- You cannot take out only part of the money. The whole account is closed.
- If the account holder dies, there is no charge (see below).
Post Office MIS maturity: what happens after 5 years?
The account matures 5 years after you open it. You give the closure form with your passbook, and the full deposit is paid to you or into your savings account.
- MIS cannot be extended, unlike SCSS.
- To keep getting monthly income, you can open a new MIS account with the money. It earns the rate in force on the day you open it.
Nominee, death of the account holder and transfer
- Step 1NomineeAdd one or more nominees when you open the account, or later at the post office.
- Step 2If the holder diesThe account is closed. The nominee or heirs get the deposit, with interest up to the end of the month before payment.
- Step 3Moving cityTransfer the account to another post office. Your rate and term stay the same.
Post Office MIS tax rules and TDS
- TaxableInterestAt your slab rate
- NoDeduction on depositNot under Section 123 (earlier 80C)
- ₹50KSenior citizen deductionOld regime, Section 153 (earlier 80TTB)
- Usually noneTDSShow the interest in your return
- On the deposit: there is no tax deduction. MIS is not part of Section 123 (earlier 80C).
- On the interest: the monthly interest is added to your income each year and taxed at your slab rate, in both the old and new tax regimes.
- Senior citizens: in the old regime, people aged 60 or more can deduct up to ₹50,000 of bank and post office interest a year under Section 153 (earlier 80TTB).
- TDS: usually, no TDS is cut on MIS interest. Even so, the interest is taxable, so show it in your income tax return.
Example: Tax for a senior citizen. Mohan, 66, has ₹9,00,000 in MIS. His interest is ₹66,600 a year. In the old regime, he can deduct ₹50,000, so only ₹16,600 of it is taxed. In the new regime, the full amount is taxed.
- Interest a year
- ₹66,600
- Deduction (old regime)
- ₹50,000
- Taxed (old regime)
- ₹16,600
Post Office MIS: strengths and limits
- Yes: Backed by the Government of India
- Yes: Fixed rate for 5 years
- Yes: Income every month
- Yes: Open to any adult, and to minors
- Yes: Joint account with up to 3 adults
- No: Interest is taxable
- No: No tax deduction on the deposit
- No: Limit of ₹9 L per person
- No: No closure in the first year, and a charge after that
- No: No extension after 5 years
Post Office MIS vs SCSS vs bank FD
| Post Office MIS | SCSS | Bank FD | |
|---|---|---|---|
| Who can invest | Any resident adult; minors too | 60+ (some retirees earlier) | Anyone |
| Interest rate | 7.4% | 8.2% | Set by each bank |
| Interest paid | Every month | Every quarter | Monthly, quarterly or at the end |
| Income on ₹9 L | ₹5,550 a month | ₹18,450 a quarter | Depends on the bank rate |
| Maximum | ₹9 L single, ₹15 L joint | ₹30 L | No limit |
| Term | 5 years | 5 years, can extend | 7 days to 10 years |
| Tax deduction on deposit | No | Old regime, Section 123 (80C) | Only 5-year tax-saver FD |
| TDS | Usually none | Yes, above the limit | Yes, above the limit |
If you are 60 or older, read about the Senior Citizen Savings Scheme, or compare both in SCSS vs Post Office MIS. For a bank deposit, use the FD calculator.
Frequently asked questions
What is the Post Office Monthly Income Scheme?
It is a government savings scheme run by India Post. You deposit money once, and get interest every month for 5 years at 7.4% a year. At the end, you get your deposit back.
What is the Post Office MIS interest rate in 2026?
7.4% a year for October to December 2026. The rate on the day you open the account stays the same for all 5 years, even if the government changes the rate later.
How much monthly income will I get on ₹9 L in Post Office MIS?
₹5,550 a month at 7.4%, which is ₹66,600 a year. In a joint account with ₹15 L, you get ₹9,250 a month.
Who can open a Post Office MIS account?
Any resident Indian adult, alone or jointly with up to 3 adults. A parent or guardian can open one for a minor, and a minor aged 10 or more can open one in their own name. NRIs cannot open a new account.
What is the maximum limit in Post Office MIS?
₹9,00,000 in a single account and ₹15,00,000 in a joint account. The ₹9 L limit is for all your MIS accounts together, including your share of joint accounts. The minimum is ₹1,000.
How does a Post Office MIS joint account work?
Up to 3 adults can hold one account. Every holder has an equal share in it. For example, in a ₹15 L account of 2 people, each person's share is ₹7.5 L, and this share counts towards their own ₹9 L limit.
Can I close Post Office MIS before 5 years?
Not in the first year. After 1 year and before 3 years, 2% of the deposit is cut. After 3 years, 1% is cut. The monthly interest already paid is not taken back.
Is Post Office MIS interest taxable?
Yes. The interest is added to your income and taxed at your slab rate. The deposit does not get a deduction under Section 123 (earlier 80C). In the old tax regime, senior citizens can deduct up to ₹50,000 of interest a year under Section 153 (earlier 80TTB).
Is TDS cut on Post Office MIS interest?
Usually, no TDS is cut on MIS interest. But the interest is still taxable, so you must show it in your income tax return every year.
Can I extend Post Office MIS after 5 years?
No. MIS cannot be extended. After 5 years, you close the account and take your deposit back. To keep getting monthly income, you can open a new MIS account at the rate on that day.
What happens to Post Office MIS if the account holder dies?
The account is closed and the money is paid to the nominee or legal heirs. Interest is paid up to the end of the month before the month in which the money is paid. No charge is cut for this closure.
Which is better, Post Office MIS or SCSS?
They suit different people. SCSS is only for people aged 60 or more (and some retirees), pays 8.2% every quarter and allows up to ₹30 L. MIS is open to any adult, pays 7.4% every month and allows up to ₹9 L single.