Post Office Monthly Income Scheme (MIS) 2026: Interest Rate, Taxation, Benefits & Complete Guide
Quick Summary:
- Current Interest Rate: 7.4% p.a.
- Maximum Single Investment: ₹9 lakh
- Maximum Joint Investment: ₹15 lakh
- Maximum Monthly Income: ₹9,250
- Government Backed: Yes
- Tenure: 5 Years
Table of Contents
- Introduction
- How MIS Works
- Investment Limits
- Taxation
- Premature Withdrawal
- Frequently Asked Questions
Introduction
The Post Office Monthly Income Scheme (MIS) continues to be one of India's most trusted government-backed investment options...
Expert Insight: MIS is primarily designed for predictable monthly income and capital preservation rather than long-term wealth creation through compounding.
How Does Post Office MIS Work?
...
Investment Limits and Returns
| Particulars | Single Account | Joint Account |
|---|---|---|
| Maximum Deposit | ₹9,00,000 | ₹15,00,000 |
| Monthly Income | ₹5,550 | ₹9,250 |
Example: A joint MIS account with the maximum investment of ₹15 lakh generates approximately ₹9,250 every month.
Taxation of Post Office MIS
...
Important: Interest earned under MIS is fully taxable under
the head "Income from Other Sources".
Premature Withdrawal Rules
| Period | Penalty |
|---|---|
| Before 1 Year | No Withdrawal Allowed |
| 1-3 Years | 2% of Principal |
| 3-5 Years | 1% of Principal |
Frequently Asked Questions
What is the current Post Office MIS interest rate?
The current interest rate is 7.4% per annum payable monthly.
Can NRIs invest in MIS?
No. NRIs are not eligible to open a Post Office MIS account.
Is MIS better than Fixed Deposit?
MIS is better for investors seeking monthly cash flow, while cumulative fixed deposits are generally better for long-term compounding.
Agarwal Shaswat & Co.
Website: www.cashaswat.com