Post Office MIS: How Much Monthly Income Can You Get?

By Paarth · Published 16 October 2026 · Updated 16 October 2026

A Post Office Monthly Income Scheme account pays interest every month on your deposit and returns the full amount after 5 years. At 7.4%, the rate for the October to December 2026 quarter, ₹9 lakh in a single account earns ₹5,550 a month and ₹15 lakh in a joint account earns ₹9,250.

Calculate your monthly incomeSingle or joint, with an after-tax viewOpen MIS Calculator →

How the scheme works

You deposit a lump sum, with a minimum of ₹1,000, and receive interest every month for 5 years. The rate is fixed for your account when you open it. The maximum is ₹9 lakh for a single account and ₹15 lakh for a joint account of up to three adults. Each holder's share, including their share of joint accounts, counts toward ₹9 lakh, so the limits cannot be sidestepped by opening several accounts.

How much will you earn?

Monthly income is the deposit times the annual rate, divided by 12. At 7.4%:

₹1 lakh — ₹617 a month
₹3 lakh — ₹1,850 a month
₹5 lakh — ₹3,083 a month
₹9 lakh (single account limit) — ₹5,550 a month, or ₹66,600 a year
₹15 lakh (joint account limit) — ₹9,250 a month

Tax and what you actually keep

The interest is taxable at your slab rate, and there is no Section 80C deduction. The post office does not normally deduct TDS, but you must still report the interest yourself. For someone in the 30% slab, a monthly payout of ₹5,550 is roughly ₹3,818 after tax and cess; in a lower slab you keep more. The MIS calculator works this out for your slab.

See your after-tax incomeChoose your slab and account typeOpen MIS Calculator →

What to watch for

No compounding. The interest is paid out, so it earns nothing unless you reinvest it. Leaving it idle in a savings account earns far less than the MIS rate. Reinvesting it yourself, for example in a recurring deposit or a SIP, builds wealth, though that choice comes with its own risks.
The income is fixed. A monthly ₹5,550 stays ₹5,550 while prices rise, as our inflation guide shows.
Early closure costs money. You cannot close in the first year. After one year but before three, 2% of the deposit is deducted, and after three years, 1%.

MIS or something else?

If you are 60 or older, SCSS pays a higher rate. If you can accept some risk and want your income to grow, a systematic withdrawal plan is an alternative, though the amount is not guaranteed. For the rest, MIS is a simple, government-backed way to turn a lump sum into a steady income.

Compare with a senior schemeSee SCSS income if you are 60 or olderOpen SCSS Calculator →

Frequently asked questions

How much monthly income does ₹9 lakh in Post Office MIS give?

At the 7.4% rate notified for October to December 2026, ₹9 lakh earns ₹5,550 a month, or ₹66,600 a year. A joint account holding ₹15 lakh earns ₹9,250 a month. The rate that applies is the one on the day you open the account.

Is Post Office MIS interest taxable?

Yes. It is added to your income and taxed at your slab rate. The post office does not normally deduct TDS, but you must report the interest in your return. There is no Section 80C deduction on MIS deposits.

Can the monthly interest go straight into a recurring deposit?

Not automatically. The interest is credited to your savings account, so you would have to deposit it yourself each month. Check the post office for the current procedure before relying on it.

Disclaimer: This article is for general education only and is not financial, investment, tax or legal advice. Figures are illustrative, and rates and rules change. Check official sources and consult a SEBI-registered investment adviser or qualified tax professional before you decide.

Paarth builds the free calculators on PropertiesOnline.in and has been writing about money and everyday tools in India for over 15 years. These guides are practical and honest — not investment advice. Invest based on your own goals or a qualified adviser's guidance.