The Post Office Monthly Income Scheme is a government-backed deposit that pays a fixed monthly interest income rather than compounding, making it popular for those who want regular income from a lumpsum. This calculator estimates that monthly payout.
How to Use This Calculator
- Enter your MIS deposit amount (within the scheme's permitted ceiling).
- Confirm the current MIS interest rate (admin-configured, editable).
- View your estimated fixed monthly income.
How the Calculation Works
Monthly Income = (Deposit × Annual Interest Rate) ÷ 12
MIS interest does not compound — it is paid out monthly rather than being added back to the deposit.
Worked Example
See the calculator above for the exact monthly payout at the currently configured MIS interest rate, since the government revises this rate quarterly and it is not fixed here.
Who Should Use This
Retirees or anyone wanting a predictable, government-backed monthly income stream from a lumpsum deposit.
Important Considerations
MIS has a maximum deposit ceiling (higher for joint accounts) set by the scheme, and a fixed tenure with rules for premature withdrawal. Confirm current limits and rates with your local post office before investing.
Common Mistakes
Assuming MIS interest compounds like an FD is incorrect — MIS pays interest out monthly rather than reinvesting it, so the deposit itself does not grow.
References
Official source: India Post.