How the Post Office Monthly Income Scheme works
You deposit a lump sum once and receive interest every month for 5 years, at the rate in force when you invest: monthly interest = deposit × rate ÷ 12. The deposit comes back at the end. The limit is ₹9 lakh in a single account and ₹15 lakh in a joint account (up to 3 adults), across all your MIS accounts.
The interest is paid into your Post Office savings account and is taxable at your slab rate; there is no 80C deduction. You can close the account after a year: 2% of the deposit is deducted before 3 years and 1% after.
Aged 60 or more? The Senior Citizens' Savings Scheme usually pays more, quarterly.
Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer. Written by the Welthr team; last reviewed on .