For many individuals, especially senior citizens, housewives, and salaried employees, guaranteed monthly income is more valuable than uncertain market-linked returns. The Post Office Monthly Income Scheme (MIS) provides exactly that fixed monthly interest credited directly to your account.
If you invest between ₹1 lakh and ₹15 lakh, you can earn a steady monthly payout, almost like a pension. With a current interest rate of 7.4% per annum (as of August 2025), this scheme has become one of the most trusted options for risk-free income in India.
What is the Post Office MIS Scheme?
The Post Office Monthly Income Scheme (MIS) is a savings plan offered by the Government of India through India Post. It is designed to provide depositors with a fixed monthly income in the form of interest.
Key Features:
- Guaranteed Returns: Fixed interest, unaffected by market fluctuations.
- Tenure: 5 years (with option to reinvest after maturity).
- Eligibility: Any Indian resident above 18 years can open an account. Minors (10+ years) can open with a guardian.
- Mode of Holding: Single or joint accounts allowed.
Quick Summary-Post Office MIS Scheme 2025
Field |
Details |
|---|---|
Scheme Name |
Post Office Monthly Income Scheme (MIS) |
Interest Rate (2025) |
7.4% per annum |
Minimum Investment |
₹1,000 |
Maximum Investment |
₹9 lakh (single account), ₹15 lakh (joint account) |
Lock-in Period |
5 years |
Interest Payment |
Monthly (credited directly to savings account) |
Risk Factor |
Zero risk – Government-backed |
Suitable For |
Senior citizens, retired individuals, housewives, salaried employees |
Official Website |
Why the MIS Scheme is Special
Unlike risky investments such as mutual funds, stocks, or corporate bonds, the MIS scheme is entirely risk-free and government-backed.
- You know exactly how much income you will receive every month from the very first day.
- The scheme is perfect for those who want pension-like income without market risks.
- It is a popular choice for retired elderly citizens, homemakers, and middle-class families.
Current Interest Rate (2025)
As of August 2025, the interest rate is 7.4% per annum.
- Interest is not compounded, but credited monthly to your linked savings account.
- You can use this monthly income for household expenses, medical needs, or savings reinvestment.
Income Calculation: Deposit ₹1 Lakh to ₹15 Lakh
Here’s how much you can earn every month and every year at the current interest rate of 7.4%.
Investment Amount |
Interest Rate |
Monthly Income |
Annual Income |
|---|---|---|---|
₹1,00,000 |
7.4% |
₹617 |
₹7,404 |
₹2,00,000 |
7.4% |
₹1,233 |
₹14,808 |
₹5,00,000 |
7.4% |
₹3,083 |
₹36,996 |
₹10,00,000 |
7.4% |
₹6,167 |
₹73,992 |
₹15,00,000 |
7.4% |
₹9,250 |
₹1,10,988 |
This shows that by investing the maximum limit of ₹15 lakh (joint account), you can earn a monthly income of ₹9,250.
Why the MIS Scheme is Safe
- Government Support – Being a post office scheme, it is fully secured by the Government of India.
- No Market Risk – Your returns remain fixed and are not affected by market ups and downs.
- Transparency – You know in advance exactly how much income you will receive.
- Suitable for All – Whether you are a salaried worker, a homemaker, or a retired person, MIS provides predictable monthly support.
Advantages of Post Office MIS
- Regular Income Flow: Helps manage monthly expenses easily.
- Low Entry Point: Start with as little as ₹1,000.
- Joint Holding Benefit: Couples can invest together and enjoy higher income.
- Multiple Accounts: You can open multiple accounts under the prescribed limits.
- Reinvestment Option: After maturity, you can reinvest in MIS or shift funds to other post office savings schemes.
How to Open a Post Office MIS Account
- Visit your nearest Post Office branch.
- Fill out the MIS application form.
- Submit KYC documents: Aadhaar, PAN, and photographs.
- Deposit the amount (cash or cheque).
- Link your savings account for monthly credit.
- Interest starts accruing from the date of deposit.
Taxation Rules
- The interest earned is fully taxable under the Income Tax Act.
- No TDS (Tax Deducted at Source) is deducted by the Post Office.
- Investors must declare the interest as income while filing returns.
FAQs About Post Office MIS Scheme 2025
Q1. What is the minimum and maximum investment in MIS?
Minimum is ₹1,000; maximum is ₹9 lakh for a single account and ₹15 lakh for a joint account.
Q2. What is the current interest rate?
As of August 2025, the interest rate is 7.4% per annum.
Q3. How long is the lock-in period?
The maturity period is 5 years. After this, you can withdraw or reinvest.
Q4. Can I open multiple MIS accounts?
Yes, multiple accounts are allowed, but the combined investment should not exceed the maximum limit.
Q5. Is the MIS scheme safe?
Yes, it is fully government-backed and unaffected by market fluctuations, making it one of the safest investment options.
Conclusion
The Post Office Monthly Income Scheme (MIS) is one of the most reliable savings options for those seeking fixed, risk-free monthly income. With an attractive 7.4% interest rate, you can earn up to ₹9,250 per month by investing the maximum limit of ₹15 lakh.
It is especially suitable for retirees, homemakers, and conservative investors who want assured returns without worrying about market volatility.
For official details, visit: India Post
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