The Post Office Monthly Income Scheme (MIS) is designed for investors who want a regular monthly income from a lump-sum investment. Under the scheme, interest is paid every month, while the original deposit is returned when the five-year maturity period is completed.
For investors considering a relatively predictable source of monthly income, the scheme can be an option worth examining. Here is what an investment of ₹6 lakh could generate at the current interest rate.
Post Office MIS Interest Rate
The Central Government has kept the interest rates on small savings schemes unchanged for the October–December 2026 quarter. The Post Office Monthly Income Scheme currently offers an annual interest rate of 7.4%.
The interest is credited to the investor every month, while the principal amount remains invested for the five-year tenure. Once the account matures, the deposited amount is returned to the investor.
How Much Will ₹6 Lakh Earn?
If you deposit ₹6 lakh in the Post Office MIS at an interest rate of 7.4%, the calculation works out to approximately ₹3,700 per month.
Over one year, the total interest would be ₹44,400. If the account remains active for the complete five-year tenure, the total interest received through monthly payouts would be approximately ₹2.22 lakh.
At maturity, the original ₹6 lakh principal would also be returned.
The actual interest payout follows the scheme’s prescribed monthly payment structure.
Investment Limits and Premature Withdrawal Rules
An MIS account can be opened with a minimum investment of ₹1,000. An individual can deposit up to ₹9 lakh in a single account, while the maximum investment limit for a joint account is ₹15 lakh. A joint account can be opened by two or three individuals.
The standard maturity period is five years. However, premature closure is permitted subject to specific conditions.
An account cannot normally be closed before completing one year. If it is closed after one year but before three years, 2% of the principal amount is deducted. For closure after three years but before five years, the applicable deduction is 1% of the principal amount.
Important Points Before Investing
The Post Office Monthly Income Scheme may appeal to investors seeking regular interest income along with the return of their principal at maturity. However, investors should understand the applicable rules, withdrawal conditions and tax treatment before putting money into the scheme.
The interest rate offered by small savings schemes can also change for future quarters based on government notifications. Investors should therefore check the latest applicable rate and rules before opening an account.
Disclaimer: This article is intended for general informational purposes only. Interest rates, investment limits, withdrawal rules and tax provisions may change according to government notifications and applicable regulations. Investors should verify the latest details with the Post Office or an authorised financial professional before making an investment decision.