Investing

Post Office MIS Calculator

Account Type
5,00,000
Monthly Payout3,083
Total Interest1,85,000
Interest Rate7.4% p.a.

Monthly Income Details:

  • Sovereign security: Guaranteed monthly income with no capital volatility.
  • Lock-in Period: **5 Years**. Account can be closed after 1 year with a minor interest penalty.
  • Your monthly earnings: 3,083.
  • Total interest over 5 Years: 1,85,000.

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Post Office MIS Payout Formula

Monthly Interest = Deposit * (Interest Rate p.a. / 12)

Calculates monthly simple interest payments on Post Office Monthly Income Scheme deposits (max ₹9 Lakhs single / ₹15 Lakhs joint).

Worked Example: Single deposit of ₹9 Lakhs at 7.4% p.a.

Monthly interest payout: **₹5,550**. Total interest over 5 years: **₹3,33,000**.

Post Office Monthly Income Scheme: Securing a reliable monthly interest stream

Shila retired with a lump sum gratuity and wanted to generate a steady monthly income. She opened a joint Post Office MIS account with her husband, depositing the maximum limit of ₹15 Lakhs.

At the current 7.4% p.a. interest rate, she receives a guaranteed monthly payout of ₹9,250 directly to her savings account. After the 5-year lock-in period, her original ₹15 Lakhs deposit will be returned in full.

The Post Office MIS offers a highly safe monthly income stream for risk-averse investors, with limits of ₹9 Lakhs for single and ₹15 Lakhs for joint accounts.

This is an ideal choice for retirees looking to cover monthly living expenses without risking their principal.

Frequently Asked Questions

What are the deposit limits in Post Office MIS?

A single account holder can invest up to ₹9 Lakhs, while a joint account (up to 3 adults) allows a maximum deposit of ₹15 Lakhs.

What is the tenure of Post Office Monthly Income Scheme?

The tenure is 5 years. You can withdraw the principal after 5 years, or choose to break the account early after 1 year with a 1.0% to 1.5% penalty.

Is the monthly payout fixed?

Yes. The interest rate is fixed at the time of opening the account (currently 7.4% p.a.) and remains constant throughout the 5-year tenure.

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