Post Office Monthly Income Scheme (MIS) Calculator Guide
What is Post Office Monthly Income Scheme (MIS)?
The Post Office Monthly Income Scheme (MIS) is a popular savings scheme offered by India Post that provides regular monthly income to investors. It's ideal for investors seeking steady monthly returns with capital safety and government backing.
Key Features of Post Office MIS
- Regular Monthly Income: Guaranteed monthly payments throughout the investment period
- Government Backing: 100% safe investment backed by the Government of India
- Flexible Investment: Minimum ₹1,000, maximum ₹4.5 lakh (single), ₹9 lakh (joint)
- 5-Year Term: Fixed maturity period of 5 years
- Attractive Interest Rate: Currently offering 7.4% per annum (2024)
- Premature Withdrawal: Allowed after 1 year with penalty
How to Calculate Post Office MIS Returns
Our Post Office MIS calculator uses the following formula:
Monthly Income = (Investment Amount × Interest Rate) ÷ 12
Total Interest = Monthly Income × 12 × Number of Years
Maturity Amount = Investment Amount (Principal is returned at maturity)
MIS Investment Limits and Rules
- Single Account: Maximum investment of ₹4.5 lakh
- Joint Account: Maximum investment of ₹9 lakh
- Multiple Accounts: Can open multiple accounts subject to overall limit
- Minimum Investment: ₹1,000 and in multiples of ₹1,000
- Age Limit: No age restrictions for opening MIS account
Tax Implications of Post Office MIS
- Interest Income: Monthly interest is taxable as per income tax slab
- TDS: 10% TDS if annual interest exceeds ₹40,000
- No Tax Deduction: Investment doesn't qualify for Section 80C deduction
- Form 15G/15H: Can be submitted to avoid TDS if income is below taxable limit
Who Should Invest in Post Office MIS?
- Senior Citizens: Ideal for regular monthly income during retirement
- Conservative Investors: Perfect for risk-averse investors seeking safety
- Income Seekers: Suitable for those needing regular monthly cash flow
- Short-term Goals: Good for 5-year financial planning
MIS vs Other Investment Options
| Investment | Interest Rate | Risk Level | Lock-in Period |
|---|---|---|---|
| Post Office MIS | 7.4% | Very Low | 5 Years |
| Bank FD | 6.5-7% | Very Low | 1-10 Years |
| PPF | 7.1% | Very Low | 15 Years |
| NSC | 6.8% | Very Low | 5 Years |
How to Open Post Office MIS Account
- Visit your nearest post office with required documents
- Fill the MIS account opening form
- Submit KYC documents (Aadhaar, PAN, address proof)
- Make the initial deposit (minimum ₹1,000)
- Receive account passbook and monthly income starts from next month
Important Considerations
- Interest Rate Risk: Rates can change for new investments
- Inflation Impact: Fixed returns may not beat inflation over time
- Liquidity: Premature withdrawal involves penalty
- Investment Limit: Maximum investment cap may limit large investments
Pro Tip: Use our Post Office MIS calculator to plan your monthly income needs and determine the right investment amount. Consider combining MIS with other investments for a diversified portfolio.