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Post Office Monthly Income Scheme (MIS)

Government of India — small savings scheme · Government & Post Office Schemes

A five-year deposit that pays a fixed amount into your account every month and returns the principal at the end.

7.40% Interest rate · Notified quarterly; current for Oct–Dec 2026

As of 1 Oct 2026. Rates change — check the source before acting.

Source: National Savings Institute · confirmed via Outlook Money, 1 October 2026

Source India Post — saving schemes

www.indiapost.gov.in/banking-services/savings

The official page listing every post office savings scheme, with the current rates and rules.

How it works

Post Office Monthly Income Scheme (MIS) is a government schemes product from Government of India — small savings scheme, in the guaranteed category: fixed by contract. A five-year deposit that pays a fixed amount into your account every month and returns the principal at the end.

Because the return type is guaranteed, the questions that matter most are: Is the rate fixed for the whole tenure, or revised during it? Who is actually promising to pay, and what happens if they don't?

  • Turning a lump sum into a predictable monthly amount
  • Supplementing household income after retirement

Key facts

Provider
Government of India — small savings scheme
Source
India Post — saving schemes ↗ https://www.indiapost.gov.in/banking-services/savings
Rate
7.40% Interest rate, as of 1 Oct 2026
Category
Government & Post Office Schemes
Minimum investment
₹1,000 maximum ₹9 lakh in a single account, ₹15 lakh jointly
Tenure
5 years
Payout
Monthly
Eligibility
Resident individuals, singly or jointly. Limits apply to how much one person can hold.
Getting your money back
The principal is locked for five years. Closing early is allowed after one year with a deduction from the deposit.
Protection
A sovereign liability of the Government of India.
Tax
The monthly payout is taxable as interest income in the year it is received, and tax may be deducted at source.

What can go wrong

  • The monthly amount is fixed in rupees, so inflation steadily reduces what it buys.
  • The principal does not grow — you get back only what you put in.
  • The deposit cap limits how much income can be generated this way.

Before you decide anything

  • The exact monthly payout for the amount you deposit
  • The deduction if you close the account in year two or three

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.

Other products in this category

The same rules and the same kind of trade-offs, described the same way.