Monthly interest on a Post Office Monthly Income Scheme deposit. The rate starts from the current small-savings card. The account runs for five years, and an early closure deducts 2% or 1% of the deposit.
A joint account stops at ₹15,00,000. One deposit, in multiples of ₹1,000.
₹
₹1,000₹3,000₹24,000₹1.9 Lakh₹15 Lakh
A joint account stops at ₹15,00,000. One deposit, in multiples of ₹1,000.
7.4% is the Monthly Income Scheme rate for 1 October 2026 to 31 December 2026. Interest is paid each month and is not compounded.
0.0%3.0%6.0%9.0%12.0%
7.4% is the Monthly Income Scheme rate for 1 October 2026 to 31 December 2026. Interest is paid each month and is not compounded.
0 or 60 means you hold it for the full 5 years. Closure is not allowed in the first year. On or before 3 years the deduction is 2% of the deposit. After 3 years it is 1%.
0 months15 months30 months45 months60 months
0 or 60 means you hold it for the full 5 years. Closure is not allowed in the first year. On or before 3 years the deduction is 2% of the deposit. After 3 years it is 1%.
Your tax slab
Interest is taxable. The deposit is not an 80C deduction. 0% does not assume a bracket. Cess is 4% of the tax.
Paid every month
Monthly interest ₹9,250Monthly interest₹9,250
A year of interest is ₹1,11,000. Over 5 years that is ₹5,55,000. At maturity the post office returns the deposit of ₹15,00,000. Interest already paid is not added again.
Interest a year
₹1,11,000₹1,11,000
Twelve monthly payments
Interest in 5 years
₹5,55,000₹5,55,000
Not compounded
Interest a year after tax
₹1,11,000₹1,11,000
Slab is 0%
Maturity payout
₹15,00,000₹15,00,000
No deduction
Held for 5 years, you receive the deposit of ₹15,00,000 back, with no deduction.
You make one deposit, in multiples of ₹1,000, at least ₹1,000. A single account stops at ₹9,00,000. A joint account stops at ₹15,00,000. Across every MIS account you hold, the same ceilings apply to you as a person. This page checks one account.
Interest is the deposit times the yearly rate, divided by 12, rounded to the nearest rupee. Fifty paise rounds up. It is paid every month for five years. The rate on this page starts at 7.4% for 1 October 2026 to 31 December 2026. A new quarter can change the rate for a new account. Money already deposited keeps the rate that applied when you opened it, for the rest of the five years.
A worked example
₹15,00,000 in a joint account at 7.4% pays ₹9,250 a month. A year of interest is ₹1,11,000. Over five years that is ₹5,55,000. At maturity you receive the deposit of ₹15,00,000 back.
At a 30% slab, tax on a year of interest is ₹33,300 and cess is ₹1,332. Interest left after tax is ₹76,368 a year. The form starts at a 0% slab so it does not assume your bracket.
Closing the same account at 24 months deducts ₹30,000, which is 2% of the deposit. You receive ₹14,70,000. Interest already paid is not taken back. Closing in the first year is not allowed. On or before three years the deduction is 2%. After three years it is 1%.
Tax, and what this is not
The interest is taxed at your slab. The deposit is not a deduction under Section 123. PPF and Sukanya Samriddhi are the small-savings accounts this site treats as excluded from total income. MIS is not one of them. The 2019 scheme PDF still prints caps of ₹4.5 lakh for a single account and ₹9 lakh for a joint account. This calculator uses ₹9,00,000 single and ₹15,00,000 joint. Closure follows the 2019 scheme: not in the first year, 2% of the deposit on or before three years, and 1% after that.
The rate sits on the small-savings card, with the Senior Citizens’ Savings Scheme. A bank deposit is the FD calculator. A monthly deposit that compounds is the RD calculator. Taking a mutual-fund corpus out month by month is the SWP calculator.
This is an estimate for learning, not a passbook and not advice. Read the disclaimer.
Questions
Is the interest compounded?
No. Interest is paid out each month. If you do not claim a month’s interest, it does not earn further interest. At five years the post office returns the deposit. The interest already paid is not added again.
Can I close it in the first year?
No. Closure is allowed only after one year. On or before three years, 2% of the deposit is deducted. After three years, and before maturity, the deduction is 1%. At five years there is no deduction.
Is a Post Office MIS deposit tax-free?
The interest is taxable at your slab. The deposit is not a deduction under Section 123. This page does not apply any interest deduction. Pick your slab to see the interest after tax and cess.
