1. What is Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme (MIS) is a popular savings scheme offered by India Post that provides fixed monthly income to investors. The scheme is ideal for risk-averse investors looking for regular income.

2. How Does the Calculator Work?

The calculator uses the MIS formula:

Where:

• \( P \) — Principal investment amount (₹)
• \( r \) — Annual interest rate (%)

Explanation: The formula calculates the monthly interest by converting the annual rate to a monthly rate and applying it to the principal amount.

3. Importance of MIS Calculation

Details: Calculating expected monthly income helps in financial planning and comparing different investment options. It ensures investors understand their potential returns before committing funds.

4. Using the Calculator

Tips: Enter principal amount in ₹ and annual interest rate in percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for MIS?
A: As of 2025, please check with your local post office for current rates as they are subject to change quarterly.

Q2: What is the minimum and maximum investment in MIS?
A: Minimum is typically ₹1,500 and maximum is ₹4.5 lakh for single account, ₹9 lakh for joint account.

Q3: What is the tenure of MIS?
A: The scheme has a tenure of 5 years.

Q4: Can I withdraw my money before maturity?
A: Premature withdrawal is allowed after 1 year with certain penalties and conditions.

Q5: Is the interest taxable?
A: Yes, the interest income is taxable under Income Tax Act, 1961.