The Post Office Monthly Income Scheme (MIS) is for people who want a fixed monthly income from a lump-sum deposit. Its official name is the National Savings Monthly Income Account Scheme. It is a Government of India small savings scheme, opened at India Post post offices, and its rates are fixed every quarter by the Department of Economic Affairs, Ministry of Finance. For the October–December 2026 quarter the interest rate is 7.4% a year, paid every month.
How much to deposit and how much income you get
An account opens with a minimum of Rs 1,000, and deposits are made in multiples of Rs 1,000. The maximum deposit is Rs 9 lakh in a single account and Rs 15 lakh in a joint account. These limits have applied since 31 March 2023 — before that the limits were Rs 4.5 lakh and Rs 9 lakh. At 7.4%, a deposit of Rs 9 lakh earns Rs 5,550 every month, and a Rs 15 lakh joint account earns Rs 9,250 a month. The rate is fixed when the account is opened and stays the same for five years, but confirm the current rate at the post office, as the government can revise rates every quarter.
Who can open an account
Any adult Indian citizen can open a single account in their own name. Up to three adults can open a joint account together, with a combined limit of Rs 15 lakh. One person’s total deposits across all MIS accounts cannot exceed Rs 9 lakh. An account can be opened at any post office and can also be transferred to another post office.
Tenure and premature closure
An MIS account runs for five years. On maturity, the full deposit is returned. The account cannot be closed in the first year. Closing it between one and three years attracts a deduction of 2% of the deposit, and closing it between three and five years attracts a deduction of 1%. So the scheme suits people who will not need this money for five years. Special rules apply on the death of the account holder — ask the post office for details.
How is it taxed
The interest earned on MIS is added to your income and taxed at your slab rate. Deposits in this scheme do not qualify for any deduction under Section 80C of the Income-tax Act. The interest is credited to your savings account every month, so it must be shown as regular income. Ask your tax adviser before investing.
Frequently Asked Questions
Q1: What is the current MIS interest rate?
A: 7.4% a year for the October–December 2026 quarter, paid monthly. The government fixes small-savings rates every quarter.
Q2: What is the maximum deposit?
A: Rs 9 lakh in a single account and Rs 15 lakh in a joint account held by up to three adults.
Q3: How much will Rs 9 lakh earn every month?
A: At 7.4%, Rs 5,550 every month — Rs 66,600 in a year.
Q4: Can the account be closed before maturity?
A: Not in the first year. Between one and three years the deduction is 2%, and between three and five years it is 1% of the deposit.
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