Monthly Income · India Post
Post Office Monthly Income Scheme (MIS)
Invest a lump sum once and receive steady monthly interest — a government-backed scheme ideal for those who want regular income without market risk.
Govt-Backed
Part of India's small savings framework — high capital security.
Monthly Income
Interest credited to your account every month.
5-Year Tenure
Fixed maturity; premature exit permitted after 1 year.
Post Office Only
Exclusively available at designated India Post branches.
Joint Account
Up to 3 adults jointly; limit increases to ₹15 lakh.
Overview
What is Post Office MIS?
The Post Office Monthly Income Scheme (MIS) is a Government of India-backed small savings scheme where you make a one-time lump-sum deposit and receive interest every month for 5 years. At maturity, the principal is returned. It suits retirees, homemakers, or anyone who needs a steady, predictable monthly income without taking on market risk.
Monthly Income Examples · 7.4% p.a.
Single account · ₹9 lakh
₹5,550
per month · before tax
Joint account · ₹15 lakh
₹9,250
per month · before tax
Investment Limits
How Much Can You Invest?
Minimum
₹1,000
in multiples of ₹1,000
Single Account Max
₹9 lakh
per individual
Joint Account Max
₹15 lakh
up to 3 adults
An individual may hold more than one MIS account, but the total investment across all accounts cannot exceed ₹9 lakh (single) or ₹15 lakh (joint), subject to applicable scheme rules.
Eligibility
Who Can Invest?
- Single adult (resident individual)
- Up to three adults in a joint account
- Minor aged 10 years or above (subject to applicable rules)
- Guardian on behalf of a minor or person of unsound mind
- NRIs are not eligible to open a new MIS account
KYC
Documents Required
- Identity proof — Aadhaar, PAN, Passport, Voter ID
- Address proof as per applicable KYC norms
- PAN card or Form 60 (where applicable)
- Photograph if required under account-opening procedure
- Prescribed MIS account opening form
Returns & Tax
Interest & Tax Treatment
How interest works
Interest is calculated at 7.4% p.a. on the deposited amount and paid monthly. The rate is fixed at the time of opening and is not compounded — unclaimed monthly interest earns no additional return under the scheme.
Tax treatment
Monthly interest received is fully taxable as per your income slab. There is no Section 80C deduction on MIS deposits. Verify the current TDS applicability with a tax advisor or the post office before investing.
Early Exit
Premature Closure Rules
- Closure not permitted within the first 1 year
- Closed after 1 year but on or before 3 years — 2% deduction on deposit
- Closed after 3 years but before maturity — 1% deduction on deposit
- Special provisions apply on death of account holder
The deduction is applied to the original deposit amount, not the interest. At maturity (5 years), the full principal is repaid with no deduction.
Where to Open
Designated Post Offices Only
MIS accounts can only be opened at designated India Post branches — not through banks or online portals. Visit your nearest eligible post office with your KYC documents and the prescribed account opening form.
India Post Banking & Savings Services →Things to Know
Before You Invest
- Unclaimed monthly interest does not earn additional interest — withdraw it promptly
- Interest is fully taxable as per your income slab; no TDS provision at present but verify
- NRIs cannot open a new MIS account
- Investment limits (₹9L / ₹15L) may be revised by the Government
- Interest rates are reviewed quarterly and may change for future investments
Is Post Office MIS right for your income needs?
Talk to a Wealth Doctor — free advice.