Post Office MIS Calculator

The current Post Office MIS interest rate is 7.4% per annum (FY 2024-25), declared quarterly by the government. The rate applicable at the time of investment remains fixed for the entire 5-year tenure regardless of future changes. MIS offers one of the highest guaranteed monthly income rates among safe government schemes.

Minimum investment is ₹1,000 in multiples of ₹1,000. Maximum is ₹9 lakh in a single account and ₹15 lakh in a joint account. Multiple MIS accounts are permitted, but the total across all accounts cannot exceed ₹9 lakh (single) or ₹15 lakh (joint). NRIs are not eligible to invest.

MIS investment does not qualify for Section 80C deduction. Monthly interest earned is fully taxable as 'Income from Other Sources' per your income slab. Post Office does not deduct TDS, so you must report the interest in your ITR and pay tax. MIS is most tax-efficient for investors in the nil or 10% tax bracket.

Premature closure is allowed with a penalty: 2% deducted if closed after 1 year, and 1% after 3 years. Closure before 1 year is not permitted except in exceptional cases (death, court order). Invest in MIS only funds you will not need for at least 1 year.

Monthly interest is paid on the 1st of every month (next working day if a holiday). Payment options are cash collection at the post office, direct credit to a linked savings or bank account, or by cheque. The first payment is exactly one month after account opening. Auto-credit to a bank account is the most convenient option.

At maturity (5 years), the full principal is returned; all interest has already been paid monthly. Visit the post office with your passbook and submit the closure form to receive your principal. MIS does NOT auto-renew — you must actively reinvest if desired. Plan whether to reinvest or withdraw 1–2 months before maturity.

MIS (7.4%) is government-backed with monthly payouts, a ₹9L single-account limit, and no TDS. Bank FDs offer more flexible tenures, higher limits, and a loan facility but typically pay slightly lower rates with TDS applicable. MIS suits retirees needing guaranteed monthly income; FDs suit those needing flexibility or higher investment amounts.

Visit any post office with PAN card, Aadhaar, a passport-size photo, and the deposit amount (cash, cheque, or DD). Fill the MIS account opening form, provide a nomination, and submit. Your passbook is typically ready within 2–3 days. Online account opening is not yet available; the account can be transferred between post offices free of charge.

Yes, but MIS offers no additional interest rate for senior citizens — the rate is 7.4% for everyone. The Post Office Senior Citizen Savings Scheme (SCSS) offers 8.2% with quarterly payouts and a ₹30 lakh limit — generally a better option for seniors. Use MIS only if monthly (rather than quarterly) payouts are specifically required or the SCSS limit is exhausted.

On the account holder's death, the account matures immediately and the nominee receives the principal plus proportionate interest without any premature closure penalty. The nominee submits a death certificate, claim form, and passbook to the post office, typically settled within 30–45 days. Always keep nomination updated to avoid legal delays.

Loans are not available directly from the post office against MIS. The MIS passbook may be pledged with some banks or NBFCs as collateral, but this is at their discretion and typically at a higher interest rate than the MIS income. For emergencies, premature closure (with penalty) or a personal loan are more practical alternatives.