This post office MIS calculator shows the monthly income you get from the post office Monthly Income Scheme. Enter your deposit and the calculator uses the current MIS rate of interest in the post office. pincodeoffice.com is an independent site, not India Post. For official rules, see the India Post website.
How MIS in post office works
MIS post office accounts are simple. You put in one lump sum. The post office pays you interest every month for 5 years. At the end of 5 years, you get your full deposit back. The rate is fixed on the day you open the account and does not change during the 5 years. This makes MIS popular with retired people and anyone who wants a steady monthly income. The MIS rate of interest in post office accounts is reviewed every quarter, but only new accounts get the new rate. See the current post office MIS rate on our post office schemes page.
The monthly interest is paid into your post office savings account. So you need a savings account at the same post office. From there, you can withdraw it, or use it to pay a recurring deposit. Many people put MIS income into an RD to earn more on it. See the post office RD calculator for that.
MIS limit in post office
- Minimum deposit: Rs 1,000, in multiples of Rs 1,000.
- Single account: up to Rs 9 lakh.
- Joint account: up to Rs 15 lakh, with up to three adults.
- Joint holders: in a joint account, each holder has an equal share, and that share counts toward their own limit.
- Minors: a guardian can open an account for a minor, and a minor aged 10 or above can open one. A lower limit applies. Check it at your post office.
Post office MIS rules for premature closure
- You cannot close the account in the first year.
- After 1 year but before 3 years, 2% of the deposit is cut from what you get back.
- After 3 years but before 5 years, 1% of the deposit is cut.
Example: on a deposit of Rs 5 lakh, a 2% cut is Rs 10,000, and a 1% cut is Rs 5,000. Plan your money so you do not need to close it early.
Tax on post office MIS interest
The MIS gives no deduction under Section 80C (Section 123 under the new Income-tax Act). The monthly interest is fully taxable. Add it to your yearly income and pay tax as per your slab. Keep your passbook entries to work out the total interest for your return.
Worked example: post office MIS calculator for Rs 9 lakh
Say you put the full single limit of Rs 9 lakh in MIS. Type 900000 in the calculator. It shows your monthly income at the current rate, the total income over 5 years, and your deposit returned at the end. Now try a joint account of Rs 15 lakh. Type 1500000 and the monthly income goes up in the same ratio. For a smaller start, try Rs 1 lakh. The income is smaller, but the rules are the same.
This MIS calculator post office savers can use at home gives the same figure the post office pays each month, give or take rounding. The MIS post office interest is credited on the same date each month, counted from your opening date.
The calculator shows simple monthly interest. It does not add any interest on interest, because MIS pays out the interest every month instead of adding it to the deposit.
MIS or SCSS?
If you are 60 or above, also check the Senior Citizen Savings Scheme. It pays interest every quarter, has a higher limit, and gives an 80C benefit. See the SCSS calculator and compare.
How to open a post office MIS account
- Open a post office savings account first if you do not have one.
- Take Aadhaar, PAN and photos to the post office. Find the nearest one with our pincode of my location tool and check the post office timings.
- Fill the MIS form and add a nominee.
- Pay the deposit by cash or cheque.
- Interest starts coming to your savings account every month.