See the monthly income from a Post Office Monthly Income Scheme deposit at the current 7.4% rate, for single or joint accounts.
The Post Office Monthly Income Scheme is a 5-year government-backed deposit that pays interest every month. The rate is 7.4% a year for October–December 2026, fixed for the whole term once you open the account. The limit is ₹9 lakh for a single account and ₹15 lakh for a joint account (up to three adults), with a minimum of ₹1,000.
The maximum single deposit of ₹9 lakh pays ₹5,550 a month; a joint ₹15 lakh pays ₹9,250. Interest is credited to your post office savings account, but the MIS interest itself does not compound. If you want growth, you can move each payout into a recurring deposit, which is a separate deposit that does earn compound interest. After 5 years the deposit is returned.
There is no tax deduction for the deposit, and the interest is taxable at your slab rate (no TDS is deducted by the post office, so declare it in your return). You can close the account after 1 year: 2% of the deposit is deducted if you close before 3 years, and 1% between 3 and 5 years.
Rates are set by the government every quarter for new accounts. Compare with SCSS if you are 60 or older: SCSS pays a higher 8.2%, though quarterly.
A retired couple invests ₹15 lakh, the maximum for a joint account, at 7.4% a year. The monthly payout is 15,00,000 × 7.4% ÷ 12 = ₹9,250. Over the 5-year term they receive 60 payments totalling ₹5,55,000, and the ₹15 lakh is returned at maturity.
Because the interest is fully taxable, the real income depends on their tax slab. Under the new regime, if their total taxable income stays within the rebate limit, they may pay no tax on it at all; otherwise it is taxed at their slab rate.
Last reviewed: 5 November 2026 by the YogiCalc team · How we calculate and verify · Spotted an error? Tell us
7.4% a year for October–December 2026, paid monthly and fixed for 5 years.
₹5,550 a month at 7.4%, which is ₹66,600 a year and ₹3,33,000 over 5 years. The ₹9 lakh is returned at maturity.
₹9 lakh in a single account and ₹15 lakh in a joint account. The limit applies across all your MIS accounts.
Yes, at your slab rate. The post office does not deduct TDS, so add the interest to your income when you file your return.
Yes, after 1 year. 2% of the deposit is deducted before 3 years and 1% between 3 and 5 years.
7.4% a year, paid monthly. The rate is reviewed every quarter, so check the latest rate before you invest.
Yes, but the total across all your accounts cannot exceed ₹9 lakh for a single holder, and your share in joint accounts counts towards that limit.