Benefits of Post Office Monthly Income Scheme (MIS)

There are multiple Benefits of Post Office Monthly Income Scheme including low risk investment since it is government backed, guaranteed monthly interest payments, attractive interest rate, flexible investments, ideal for senior citizens and covering your monthly expenses.

Let us understand all benefits in detail.

Table of Contents

Government Backed
Regular Monthly Income
Flexible Investments
Income Tax Benefits
Easy Account Opening
Not dependent on Market Fluctuations
Ideal for Senior Citizens
Post Office Monthly Income Scheme Interest Calculation Video
Conclusion

Government Backed

The Post Office MIS scheme is government backed and hence provides good returns at low risk. The interest amount is paid on the investment you make in this MIS scheme which has a fixed interest rate. Due to it’s low risk nature, unlike stock market and mutual funds, this scheme is ideal for your debt fund allocation, for conservative investors and senior citizens.

Regular Monthly Income

As the name says, the post office monthly income scheme provides you the monthly income based on the investment and the interest rate. Interest is calculated on monthly basis and is paid to you via your savings account. This can help you in covering your monthly expenses while playing a role of passive income. You can focus on working towards your active income, and on other hand, MIS scheme help you earn money passively.

At interest rate of 7.4%, you can get good monthly income based on your deposit amount.

Flexible Investments

As far as Investments are concerned, you can invest a maximum of Rs. 9 lakh with single account holder and Rs. 15 lakh with join account holder. The minimum amount you can deposit in MIS scheme is Rs. 1000. In this way, the scheme allows you with flexible investment options to earn monthly interest.

Note that the amount of monthly interest depends on your deposits and interest rate. Higher the deposit, more interest you’ll get on monthly basis as monthly income.

You can use below calculator to calculate monthly interest in post office MIS scheme:

Income Tax Benefits

This is one of the important benefits if you are salaried employee. You can claim deduction under Section 80C that helps you save income tax with old tax regime. The amount you invest in post office monthly income scheme can be claimed under this section to reduce your tax liability.

Note that new tax regime does not allow this deduction when you invest in this MIS scheme.

Easy Account Opening

You can easily open the MIS scheme in the nearest post office. There is no hassle while opening the account and providing the one time investment in post office monthly income scheme.

Not dependent on Market Fluctuations

Unlike stock market and mutual funds, where the returns depend on the returns from share market, the MIS scheme is independent of the market fluctuations. So even if the market is going down with prices of shares of companies, it does not affect the monthly income you’ll receive from this MIS scheme.

Ideal for Senior Citizens

Due to its conservative nature and low risk investment, senior citizens find this MIS scheme best suited for them to get monthly income on regular basis while protecting their principal amount. The current interest rate is 7.4% for the quarter January to March 2025, and this interest rate is reviewed every quarter by government of India.

Watch below video on how post office MIS scheme interest is calculated on monthly basis.

Post Office Monthly Income Scheme Interest Calculation Video

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Conclusion

So to conclude, Post office monthly income scheme (MIS) provides you great benefits including, low risk investment, attractive interest rate, flexible investment, income tax benefits, ideal for senior citizens and covering your monthly expenses.

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