Indian Post Office Monthly Income Scheme 2026 New Full Guide Benefits

The Indian Post Office Monthly Income Scheme (MIS) is among the most trusted government-backed savings plans in the country. It has been particularly designed for individuals who prefer a steady and guaranteed monthly income without market risk. Even if a person is a retired senior citizen, homemaker, or salaried employee, this plan assures a fixed income every month.

Unlike mutual funds or stock investments that fluctuate, MIS offers assured interest every month. You deposit a lump sum once and receive interest for 5 years, credited monthly into your Post Office Savings Account.

For example, if you invest ₹9,00,000 jointly, you’ll receive around ₹5,550 per month as income (based on a 7.4% annual rate). This makes it one of the best safe-income options in India in 2025 and 2026

What Is the Indian Post Office Monthly Income Scheme?

The Indian Post Office Monthly Income Scheme (POMIS) is a small savings plan operated by the Department of Posts, Government of India. It aims to provide a fixed monthly return from the interest earned on your one-time deposit.

• Type of Scheme: Government-backed savings plan
• Tenure: 5 years
• Interest Payment: Monthly
• Return: Fixed and guaranteed
• Lock-in Period: 1 year

This makes it an ideal choice for people who prefer zero-risk investment and a regular income.

Post Office MIS Interest Rate 2025

If you invest ₹1,00,000, you’ll get ₹7,400 annually as interest — i.e., ₹616 every month.

Minimum & Maximum Deposit Limit

Deposits must be in multiples of ₹1,000.
Joint account holders share equal ownership and interest benefits.

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Who Can Open an MIS Account?

Any Indian resident can open an MIS account, provided they meet the following conditions:

• Minimum Age: 18 years
• Maximum Age: No limit
• For Minors: Guardians can open on behalf of children aged 10+ years
• Eligible Applicants: Both men and women can apply
• Not Eligible: NRIs and Hindu Undivided Families (HUFs)

Joint account facility available (up to 3 persons).
Nominee option available for safety of funds.

Best Age to Invest for Maximum Benefit

Although there is no age limit, the best age to invest in the Indian Post Office Monthly Income Scheme is between 30 to 60 years.

This age group benefits most because:

• You earn a steady monthly income while balancing family and career responsibilities.
• For retirees (60+), it acts as a pension substitute with guaranteed safety.
• For middle-aged investors, it ensures diversified income stability.

So, whether you’re a working professional or a senior citizen, this plan works perfectly for consistent earnings.

How the Post Office Monthly Income Scheme Works

Let’s understand with an example:

• Suppose you invest ₹9,00,000 for 5 years at 7.4% annual interest.
• Annual Interest = ₹9,00,000 × 7.4% = ₹66,600
• Monthly Income = ₹66,600 ÷ 12 = ₹5,550

So, every month, ₹5,550 will be credited automatically into your linked Post Office Savings Account.
After 5 years, you will receive your full ₹9,00,000 back.

Post Office MIS vs Bank FD (Fixed Deposit) Comparison

Feature	Post Office MIS	Bank FD
Interest Rate	7.4% (Fixed by Govt)	6.5%–7.25% (Depends on bank)
Tenure	5 years	7 days–10 years
Risk	Zero (Govt guaranteed)	Low (Bank-dependent)
Monthly Payout	Yes	Yes (optional)
Premature Withdrawal	Allowed (with penalty)	Allowed (with penalty)
Tax Benefit	No 80C	80C for 5-year FD only

Verdict: For consistent income and full safety, Post Office MIS is better than most bank FDs.

Monthly Income Calculation Example

Investment	Interest Rate	Tenure	Monthly Income
₹1,00,000	7.4%	5 years	₹616
₹3,00,000	7.4%	5 years	₹1,850
₹5,00,000	7.4%	5 years	₹3,083
₹9,00,000	7.4%	5 years	₹5,550
₹15,00,000 (Joint)	7.4%	5 years	₹9,250

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Documents Required to Open MIS Account

To open an Indian Post Office Monthly Income Scheme account, you need:

• Identity Proof: Aadhaar / PAN / Voter ID
• Address Proof: Electricity Bill / Passport / Aadhaar
• Passport-size Photographs
• PAN Card (mandatory above ₹50,000)
• Nominee Details
• Post Office Savings Account (mandatory for monthly credit)

How to Receive Monthly Income

To receive your monthly payout:

• Open a Post Office Savings Account.
• Link it with your MIS account.
• Monthly interest is auto-credited to this account.
• You can withdraw via cheque, cash, or online transfer (through India Post Payments Bank).

Premature Closure Rules

• Before 1 year: Not allowed.
• 1 to 3 years: 2% deduction on principal.
• After 3 years: 1% deduction on principal.
• After maturity (5 years), the principal is returned; you can reinvest.

Although the scheme of the post office is secure, it also inherits the following disadvantages:

• No tax benefit under Section 80C.
• Taxable interest income.
• Non-automatic renewal after 5 years.
• Fixed return-non-adjusting with inflation.
• Some branches are still operational in an offline mode.

However, despite all these demerits, it is rated as one of the best, most stable, and reliable savings schemes in India.

Example: Post Office MIS vs Bank FD

If your goal is a guaranteed monthly income, choose Post Office MIS.
If you want flexibility and tax savings, choose a 5-year Bank FD.

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Expert Insight

“The Indian Post Office Monthly Income Scheme is not just an investment — it’s peace of mind in the form of monthly income.”

This plan is perfect for:

• Retired individuals who depend on a regular income
• Homemakers looking for secure earnings
• Parents saving for children’s education.
• Small investors who prefer safety over high returns

Motivational Thought

Wealth is not built by taking big risks, but by making wise and consistent choices.

The Indian Post Office Monthly Income Scheme reminds us that slow and steady returns often build stronger financial security than chasing high-risk profits.

Final Thoughts

This is one of the most reliable, risk-free, and transparent investment options in India. The Government of India backs it and offers a steady monthly income with guaranteed safety.

If you are looking to earn a steady, regular income irrespective of the market movement, this is just the right scheme for you. Be it retirement planning, supporting household expenses, or creating a safe portfolio, MIS assures financial stability.

In today’s world of financial uncertainty, this plan is a symbol of trust and discipline, ideal for people who believe in safe savings and long-term peace of mind.