Question 1

What is the Post Office Monthly Income Scheme (MIS)?

Accepted Answer

Post Office MIS is a 5-year government savings scheme that pays a fixed monthly income on your deposit. You invest a lump sum, receive interest every month at a fixed annual rate, and get the full principal back at the end of 5 years. It is ideal for retirees or anyone who wants a guaranteed, regular income from a safe government-backed product.

Question 2

What are the minimum and maximum investment limits?

Accepted Answer

The minimum investment is ₹1,000 (in multiples of ₹1,000). For a single account, the maximum is ₹9 lakh. For a joint account (up to 3 adults), the maximum is ₹15 lakh per account, meaning each joint holder can have a maximum of ₹9 lakh across all MIS accounts. You can open multiple MIS accounts, but the total across all accounts in your name cannot exceed ₹9 lakh (single) or your proportionate share of ₹15 lakh (joint).

Question 3

How is Post Office MIS interest taxed?

Accepted Answer

The monthly interest you receive is fully taxable as income under the head 'Income from other sources', at your applicable tax slab rate. There is no TDS (Tax Deducted at Source) on MIS payouts from the post office, so you are responsible for declaring and paying the tax yourself when you file your annual return. Unlike NSC or PPF, MIS does not offer any Section 80C deduction on the principal.

Question 4

How does Post Office MIS compare to a bank FD?

Accepted Answer

Both MIS and bank FDs are low-risk, fixed-return products, but they differ in a few important ways. MIS pays interest monthly (good for regular income needs), while a bank FD can pay monthly, quarterly, or at maturity. MIS is sovereign-backed with no deposit insurance limit to worry about, whereas bank FDs are insured up to ₹5 lakh per depositor per bank under DICGC. FD rates are set by each bank individually and may be slightly higher or lower than MIS depending on current monetary policy.

Post Office MIS Calculator

Frequently asked questions

Post Office MIS Calculator

Frequently asked questions