Post Office MIS: How much will you earn every month by depositing ₹5 lakh in the Post Office? Understand the full breakdown..

Post Office MIS: If you wish to generate a monthly income from your savings, the Post Office Monthly Income Scheme (MIS) is an excellent option. It requires a one-time lump-sum deposit, after which you receive monthly interest. In other words, there is no need to make repeated investments to secure a regular income.

How much interest will you earn on a deposit of ₹5 lakh?

For the October–December 2026 quarter, the annual interest rate for the Post Office MIS is set at 7.4%. If you deposit a lump sum of ₹5 lakh, you can receive approximately ₹3,083 every month. Over a period of 5 years, your total earnings from interest will amount to ₹1.85 lakh.

Parameter    Amount
Total Investment    ₹5,00,000
Annual Interest Rate    7.40%
Annual Interest    ₹37,000
Monthly Interest    ₹3,083.33
Total Interest over 5 Years    ₹1,85,000
Principal Amount at Maturity    ₹5,00,000

Full amount returned after five years

The tenure of the Post Office MIS is five years. A lump-sum amount must be deposited at the time of opening the account, following which you receive monthly interest. Upon completion of the five-year term, the principal amount is returned in accordance with the scheme's rules.

This is why the scheme is particularly well-suited for individuals who require a regular income from their savings.

What is the maximum earning potential through single and joint accounts?

Under this scheme, an individual can deposit a maximum of ₹9 lakh in a single account, while the maximum investment limit for a joint account is ₹15 lakh. Consequently, an investment of ₹5 lakh falls well within the limits for both types of accounts.

Category    Single Account    Joint Account
Maximum Investment    ₹9,00,000    ₹15,00,000
Annual Interest Rate    7.40%    7.40%
Annual Interest    ₹66,600    ₹1,11,000
Monthly Earnings    ₹5,550    ₹9,250
Total Interest over 5 Years    ₹3,33,000    ₹5,55,000
Principal Amount at Maturity    ₹9,00,000    ₹15,00,000
Also, consider these points before investing:

The interest earned from an MIS (Monthly Income Scheme) is taxable. Your total tax liability will depend on your income and the applicable tax regulations. Additionally, if you withdraw your funds before the completion of the five-year term, deductions may apply as per the prescribed rules.

Therefore, before investing, it is important to assess how much monthly income you require and whether you are in a position to keep your funds invested for a period of five years.

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