Post Office Monthly Income Scheme (MIS) - Interest Rate, Benefits, Eligibility & How to Invest (2025 Guide)
The Post Office Monthly Income Scheme (MIS) is a popular government-backed investment plan offered by India Post.
It is designed for individuals seeking steady monthly income with guaranteed returns and zero risk.
Ideal for retirees, homemakers, and conservative investors, this scheme combines safety, regular returns, and simplicity.
| Feature | Details |
|---|---|
| Interest Rate (Nov 2025) | 7.4% per annum (payable monthly) |
| Tenure | 5 years |
| Minimum Deposit | ₹1,000 |
| Maximum Deposit | ₹9 lakh (single account), ₹15 lakh (joint account) |
| Mode of Investment | Cash / Cheque at any Post Office |
| Premature Withdrawal | Allowed after 1 year with a small penalty |
| Tax Benefit | No tax exemption under Section 80C; interest is taxable |
| Transferability | Can be transferred from one Post Office to another |
| Nomination Facility | Available |
Benefits of Post Office MIS
Guaranteed Monthly Income – Earn a fixed interest every month directly credited to your Post Office or savings account.
Zero Risk Investment – Fully backed by the Government of India.
Steady Cash Flow – Ideal for those who want consistent income post-retirement.
Joint Holding Option – Can be opened by up to three people jointly.
Easy Operation – Simple to open and manage through your local Post Office.
Eligibility
- Any resident Indian can open an MIS account.
- Minors (10 years and above) can open the account in their own name.
-&nbnbsp;Joint accounts (up to 3 adults) are allowed.
- NRIs are not eligible.
How to Open a Post Office MIS Account
1. Visit your nearest Post Office branch.
2. Collect and fill Form A for MIS account opening.
3. Submit KYC documents – Aadhaar, PAN, and address proof.
4. Deposit the amount via cash or cheque.
5. Once processed, you will receive a passbook showing your account details.
6. Interest will start accruing from the date of deposit.
Premature Closure Rules
- Closure before 1 year - Not allowed.
- Closure after 1 year but before 3 years - 2% deduction from principal.
- Closure after 3 years but before 5 years - 1% deduction from principal.
- After 5 years, full amount (principal + final month’s interest) is payable.
Tax Implications
- Interest earned is taxable as per your income tax slab.
- No TDS is deducted automatically; you must declare it in your income tax return.
- No Section 80C benefit is available on the deposit amount.
Who Should Invest in MIS?
- Senior citizens or retirees seeking fixed monthly income.
- Homemakers who want stable interest income without risk.
- Investors looking to diversify safe portion of their portfolio.
- Parents planning regular income for household expenses.
Example of Returns
- If you invest ₹9,00,000 in MIS at 7.4% p.a.,
- you’ll receive approximately ₹5,550 per month as interest income for 5 years.
Conclusion
The Post Office Monthly Income Scheme (MIS) remains one of the best low-risk investments in India for regular income.
With guaranteed returns, government security, and simplicity, it is a trusted choice for thousands of Indians.
Whether you are retired, a homemaker, or a conservative investor, this plan offers peace of mind and predictable returns.
