Post Office Monthly Income Scheme Interest Rate & Calculation

post office monthly income scheme

Post Office Monthly Income Scheme helps you receive monthly interest from Post Office based on the investment amount. It is a 5 years scheme in post office that helps you to cover your monthly expenses. Current Interest rate is 7.4% which is reviewed by Government of India every quarter. The interest rate will be fixed throughout the tenure of 5 years, even if the rate is updated in upcoming quarters, once you open the Monthly income scheme account in post office.

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Watch below video to understand details of Post Office Monthly Income Scheme along with interest calculation:

Post Office Monthly Income Scheme Details Video

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What is Post Office Monthly Income Scheme

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

  • Post Office MIS Scheme is a fixed income scheme that gives regular payout every month on your deposits
  • This is a Post office scheme for those looking for decent returns on their lump sum investment
  • The tenure for Post Office MIS Scheme is 5 years, which means your money will be locked in for 5 years.
  • You can deposit minimum of Rs. 1000 and maximum of Rs. 9 Lakh in Single account and Rs. 15 Lakh in joint account of this scheme
  • The current interest rate in Post Office Monthly Income Scheme is 7.4% for October to December 2024 quarter
  • This interest rate is reviewed by government of India every quarter
  • The interest on which you open Monthly Income Scheme will be fixed throughout 5 years of your tenure
  • This scheme can help you get monthly income on your deposit to cover your monthly expenses.
  • Even senior citizens can open MIS scheme account which is one of the best post office schemes for senior citizens

ALSO READ: Latest Post Office Interest Rates

How Monthly Income is Calculated in Post Office MIS

The calculation of monthly income in this post office scheme is very simple. Based on the monthly interest rate, the interest amount will be calculated as explained below with an example.

Let’s say you deposit Rs. 10 Lakh in Post Office MIS Scheme. Based on 7.4% interest rate in a year, below will be the interest calculation:

Monthly Interest Amount = Monthly Interest Rate * Deposit / 100
Monthly Interest Amount = (7.4% / 12) * Rs. 10 Lakh / 100
Monthly Interest Amount = (0.61%) * Rs. 10 Lakh / 100
Monthly Interest Amount = Rs. 6166

So as seen in above calculation, you get monthly interest amount of Rs. 6166 from this post office scheme based on 10 lakh deposit and 7.4% interest rate.

Accordingly, if you deposit higher amount, you can get more monthly income to cover your monthly expenses.

You can also use below Monthly Income Scheme Calculator to calculate monthly interest based on Investment amount and interest rate.

Monthly Income Scheme Calculator

The interest rate displayed above will be updated as and when there is an update after changes in this post office scheme.

ALSO READ: Post Office Sukanya Samriddhi Yojana Scheme

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

For Rs. 1 lakh in post office monthly income scheme, you can get Rs. 616 as monthly income from this scheme. We have considered 7.4% interest rate for this calculation which might get updated in future. If you need higher monthly income than you need to increase the deposit amount.

You can check the above MIS calculator to know the investment amount required for desired monthly income.

Is Post Office MIS interest rate fixed or floating?

Post office MIS interest rate is fixed and does not change once you have opened the scheme account in any quarter. The interest rate applicable during the account opening date will be applicable for next 5 years and hence the MIS interest rate is fixed, unlike PPF (Public Provident Fund) which has floating interest rate for 15 years.

Conclusion

So Post Office MIS scheme can help you to get monthly income based on the deposit amount and the interest rate. It is one of the best post office schemes for senior citizens to cover for monthly expenses.

The interest rate in MIS scheme is fixed for next 5 years once you open the account, and it does not change during the tenure, even though if there is an update in upcoming quarter by Government of India.

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