Beginner guide · 3-minute read
Post Office MIS, explained simply
The Post Office Monthly Income Scheme (MIS) pays you interest every month for 5 years, then returns your money. It's built for people who want a steady monthly income.
Checked on 14 Oct 2026 against the Ministry of Finance small savings rate notice for Oct–Dec 2026.
In one minute
- Who runs it
- The Government of India, through post offices and some banks.
- What it pays
- 7.4% a year, paid every month (Oct–Dec 2026).
- How long
- 5 years.
- How much
- From ₹1,000 up to ₹9 lakh in a single account, or ₹15 lakh in a joint one.
How it works, with real numbers
Invest ₹9,00,000 and get ₹5,550 every month. Over 5 years that's ₹3,33,000 of interest, and you get your ₹9,00,000 back at the end.
The interest is taxed at your slab rate; at 30% plus cess you'd keep about ₹3,818 a month.
Try the MIS calculatorHow the Post Office MIS rate has changed
Post Office MIS pays 7.4% today, unchanged since April 2023. Since it began in August 1987, it has ranged from 6.6% (2020–2022) to 14% (1992–1993).
- The rate on the day you invest stays fixed for your whole term. Later changes, up or down, don't affect money you've already put in.
- Rates were higher in the 1980s and 1990s, when prices were also rising faster. What counts is how far the rate stays ahead of inflation (5.54% now).
See every rate change (22)
| Period | Rate a year |
|---|---|
| Apr 2023 – now | 7.4% |
| Jan 2023 – Mar 2023 | 7.1% |
| Oct 2022 – Dec 2022 | 6.7% |
| Apr 2020 – Sep 2022 | 6.6% |
| Jul 2019 – Mar 2020 | 7.6% |
| Oct 2018 – Jun 2019 | 7.7% |
| Jan 2018 – Sep 2018 | 7.3% |
| Jul 2017 – Dec 2017 | 7.5% |
| Apr 2017 – Jun 2017 | 7.6% |
| Oct 2016 – Mar 2017 | 7.7% |
| Apr 2016 – Sep 2016 | 7.8% |
| Apr 2013 – Mar 2016 | 8.4% |
| Apr 2012 – Mar 2013 | 8.5% |
| Dec 2011 – Mar 2012 | 8.2% |
| Mar 2003 – Nov 2011 | 8% |
| Mar 2002 – Feb 2003 | 9% |
| Mar 2001 – Feb 2002 | 9.5% |
| Jan 2000 – Feb 2001 | 11% |
| Jan 1999 – Jan 2000 | 12% |
| Sep 1993 – Dec 1998 | 13% |
| Apr 1992 – Sep 1993 | 14% |
| Aug 1987 – Apr 1992 | 12% |
Source: National Savings Institute, Ministry of Finance, rates since launch; Oct–Dec 2026 from the Ministry's latest notice.
Pros and cons
Good things
- Government-backed. As safe as it gets in India.
- Monthly income. Paid into your Post Office savings account.
- Joint accounts. Up to three adults can hold one, with a ₹15 lakh limit.
Things to watch
- Interest is taxable. At your slab rate.
- No tax deduction. It doesn't count towards the ₹1.5 lakh deduction.
- Limits. ₹9 lakh single, ₹15 lakh joint.
- Early exit costs. Not allowed in the first year; then 2% of the deposit before 3 years, 1% after.
- The income doesn't grow. Payments stay the same while prices rise.
Is it right for you?
Mistakes to avoid
- Letting the monthly interest pile up unused. If you don't need it, an RD can put it to work.
How to start
- Open a Post Office savings account if you don't have one.
- Fill in the MIS form with KYC (PAN, Aadhaar).
- Deposit the amount and add a nominee.
Words you'll see
- Monthly income
- Interest paid out every month.
- Joint account
- An account held by two or three adults together.
This guide explains how things work. It is not advice on what you should invest in. NetReturns is not SEBI-registered.