Post Office MIS Scheme Interest Calculation

Post Office Monthly Income Scheme can help you to get monthly income to cover your expenses. Minimum Rs. 1000 can be deposited in this scheme and maximum of Rs. 9 Lakh as single account holder and Rs. 15 Lakh as joint account holder can be saved in this monthly income scheme. Post Office MIS scheme can be opened for tenure of 5 years, in which case the interest rate will be fixed for this tenure.

Table of Contents

Post Office Monthly Income Scheme Calculation Video
Post Office Monthly Income Scheme Features
How Post Office MIS Scheme Works?
Post Office Monthly Income Scheme Calculator
- Interest Calculation Example
Is Post Office Monthly Income Scheme Interest Rate Fixed?
Conclusion
Frequently Asked Questions

Let us understand more about Post Office MIS Scheme in detail.

Post Office Monthly Income Scheme Calculation Video

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As seen in above video, you can get up to Rs. 9250 monthly income from Post Office MIS scheme by saving up to Rs. 15 Lakh in this scheme as joint account holder.

Post Office Monthly Income Scheme Features

Below are some of the features of Post Office MIS scheme:

Post Office MIS scheme can be opened in any post office for tenure of 5 years
It provides you regular income every month to cover for the monthly expenses based on the interest rate
Current interest rate in Post Office Monthly Income Scheme is 7.4% annually, which is reviewed by government every quarter
Note that the interest rate will be fixed for your MIS scheme once you open this account in post office for next 5 years
You can either save in this scheme as single account holder or joint account holder
Single account holder has a maximum limit of Rs. 9 Lakh and joint account holders have maximum limit of Rs. 15 Lakh
Minimum amount of Rs. 1000 can be saved in this post office scheme

ALSO READ: Senior Citizen Saving Scheme Interest Calculation

How Post Office MIS Scheme Works?

The working of Post Office MIS scheme is very simple:

Based on your investment amount in this scheme, you get regular income every month to cover your monthly expenses
The annual interest rate is first converted to monthly interest rate, based on which the monthly interest is calculated
This monthly interest is paid to you every month
The principal amount is kept safe, which is returned to you at the end of the tenure of 5 years
In this way, you get only the interest amount as payout using the principal amount in MIS scheme

Post Office Monthly Income Scheme Calculator

You can use the Post Office MIS Scheme Calculator using below link to calculate the monthly interest payout you can get.

Using above calculator, you can get interest amount every month as mentioned below on various investment amounts:

Post Office Monthly Income Scheme Interest Calculation

As seen above, based on the investment amount, you can get mentioned regular payout from MIS scheme. The interest rate considered is fixed at 7.4% at the time of writing this article. You can use the above calculator to know your regular monthly payout based on the investment amount.

Interest Calculation Example

Let us understand the example of interest calculation in monthly income scheme:

Let’s say you invest Rs. 5 Lakh with 7.4% interest rate. Below are the steps to calculate monthly income

Convert annual interest rate to monthly interest rate
Using interest calculation formula, you can get monthly interest as shown below

Monthly Interest = Monthly Interest Rate * Investment Amount / 100
Monthly Interest = (7.4% / 12) * Rs. 5 Lakh / 100
Monthly Interest = 0.6166% * Rs. 5 Lakh / 100
Monthly Interest = Rs. 3083

So as seen above, you get Rs. 3083 as monthly income on Rs. 5 lakh investment amount at 7.4% interest rate in MIS scheme, based on above interest calculation formula.

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Is Post Office Monthly Income Scheme Interest Rate Fixed?

Yes, the MIS scheme once started will have the fixed interest rate throughout the tenure of the scheme which is 5 years. Even though, if the interest rate is changed in upcoming quarters, you’ll get same interest rate when you had started the Post Office MIS Scheme.

Conclusion

So Post Office MIS Scheme can help you to get regular payouts every month to cover your expenses. This can be a good scheme if you have a lumpsum amount and want to get fixed monthly income while keeping this principal amount safe.

You can get around Rs. 9250 every month at 7.4% interest rate with investment of Rs. 15 Lakh as joint account holder. With 9 Lakh of investment, you can get around Rs. 5550 every month.

Some more Reading:

Frequently Asked Questions

Which scheme is best for monthly income in post office?

You can either invest in Post Office monthly income scheme or senior citizen saving scheme to get more interest amount every quarter. SCSS or senior citizen saving scheme is applicable for senior citizens to get quarterly interest amount based on the invested amount

What is the monthly interest on 1 lakh in post office?

Monthly interest on 1 lakh post office scheme is Rs. 617 based on 7.4% interest rate. This monthly interest can change based on the interest rate of this scheme

What is the post office 10000 per month scheme?

You can save Rs. 15 lakh in joint account holding of post office MIS scheme to get around Rs. 9250 per month at 7.4% interest rate. Alternatively, you can also invest in mutual funds and based on SWP (systematic withdrawal plan), you can redeem the mutual fund units based on your requirement.

What is the monthly 5000 investment plan in post office?

You can get 5000 monthly income using the post office MIS scheme or the senor citizen saving scheme. Use the calculators for both these schemes using the links at the bottom of this article.

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