Post Office Monthly Income Scheme: Invest ₹9 Lakh and Get ₹5,500 Monthly Interest
The Post Office Monthly Income Scheme (POMIS) is once again attracting attention from savers looking for a predictable monthly income. At the current 7.4% annual interest rate, a maximum investment of ₹9 lakh in an individual MIS account can generate approximately ₹5,500 every month as interest.
Importantly, this is not a scheme where a small deposit automatically produces ₹5,500 a month. The ₹5,500 figure applies to a ₹9 lakh investment at the prevailing 7.4% rate. India Post currently lists the Monthly Income Scheme at 7.4% interest, payable monthly.
How the Post Office MIS ₹5,500 Calculation Works
The calculation is straightforward:
₹9,00,000 × 7.4% = ₹66,600 per year
Dividing the annual interest by 12 gives:
₹66,600 ÷ 12 = ₹5,550 per month
So, at the current rate, a ₹9 lakh investment produces ₹5,550 monthly interest, commonly rounded and reported as ₹5,500.
The scheme has a ₹1,000 minimum investment, while the maximum deposit is ₹9 lakh for an individual account and ₹15 lakh for a joint account. India Post's current savings-scheme information confirms the 7.4% rate and monthly payment structure.
For a joint account with ₹15 lakh invested, the monthly interest at 7.4% works out to ₹9,250.
| Investment | Interest Rate | Approx. Monthly Interest |
|---|---|---|
| ₹1 lakh | 7.4% | ₹617 |
| ₹3 lakh | 7.4% | ₹1,850 |
| ₹5 lakh | 7.4% | ₹3,083 |
| ₹9 lakh | 7.4% | ₹5,550 |
| ₹15 lakh* | 7.4% | ₹9,250 |
₹15 lakh is the maximum limit for a joint MIS account.
What Is the Post Office Monthly Income Scheme?
POMIS is designed for people who want regular income from a lump-sum investment rather than relying on market-linked returns.
Unlike an equity mutual fund or stock, the return under MIS is determined by the government-notified small-savings interest rate. The current rate is 7.4% per year, with interest payable monthly.
The scheme has a five-year tenure, making it more suitable for investors who can keep their money invested for several years and want regular cash flow.
The Department of Posts' annual report also describes MIS as a five-year account, with the applicable deposit limits of ₹9 lakh for an individual and ₹15 lakh for a joint account.
Why the ₹5,500 Monthly Income Is Attractive
For someone with ₹9 lakh of surplus capital, the biggest attraction is predictability.
For example, suppose a retired person has ₹9 lakh that is not required immediately for daily expenses. Instead of putting the entire amount into a market-linked product, the investor could use POMIS to create a regular monthly income stream.
At 7.4%, the annual interest would be ₹66,600. Over 12 months, that translates into ₹5,550 per month, assuming the applicable rate remains 7.4%.
This can make the scheme useful for people who prioritise regular income and capital preservation over high-growth potential.
However, investors should remember that interest rates on small-savings schemes can be reviewed periodically by the government. The Finance Ministry kept the rates unchanged for the July-September 2026 quarter, with MIS continuing at 7.4%.
The Interest Rate Has Stayed at 7.4%
One notable feature of POMIS is that its interest rate has remained at 7.4% since April 1, 2023, according to recent reporting based on government notifications.
For the second quarter of FY 2026-27, covering July 1 to September 30, 2026, the government again left small-savings rates unchanged.
That provides some visibility for investors currently considering the scheme, although it does not guarantee that the same rate will apply to future deposits or future quarters.
Who Should Consider Post Office MIS?
POMIS can make sense for investors who have a lump sum and want regular income with relatively low exposure to market volatility.
It may be particularly relevant for:
Retirees looking for monthly cash flow
Conservative investors
Families seeking a predictable income stream
Investors who do not want their entire savings exposed to equities
People who can lock away a portion of their capital for the scheme's tenure
The scheme is less suitable for someone who needs high liquidity or is primarily looking for long-term wealth creation.
What Are the Important Risks and Limitations?
The headline ₹5,500 figure should not be interpreted as a guaranteed return on every Post Office account.
First, ₹9 lakh must be invested to generate approximately ₹5,550 a month at 7.4%. A much smaller deposit will generate proportionately less income.
Second, the money is committed to a five-year scheme. Investors should therefore consider their liquidity requirements before depositing a large amount.
Third, the interest rate is subject to government review. The current 7.4% rate applies under the prevailing small-savings notification; future rates can change.
Finally, investors should compare the post-tax return with alternatives. Interest income can have tax implications depending on the investor's overall income and applicable tax regime.
Post Office MIS vs Market-Linked Investments
The main difference is the nature of the return.
A POMIS investor is primarily looking for stability and periodic income. An equity investor, on the other hand, accepts market volatility in exchange for the possibility of higher long-term capital appreciation.
That means POMIS should not automatically be viewed as a replacement for equity mutual funds, stocks or other long-term growth assets.
For a person approaching retirement, regular income may be more important than maximum capital growth. For a young investor with decades ahead, locking a large amount into a fixed-income product may have a different opportunity cost.
The right choice therefore depends on the investor's objective, liquidity needs, risk tolerance and tax situation.
What Investors Should Watch Next
The key factor is the government's quarterly review of small-savings interest rates. The Department of Economic Affairs maintains the official notifications for these revisions, including the June 30, 2026 revision covering the second quarter of FY 2026-27.
Investors considering POMIS should therefore check the latest notified interest rate and applicable deposit rules before opening an account, rather than relying on older articles quoting 7.4%.
Bottom Line
The Post Office Monthly Income Scheme can currently provide around ₹5,550 a month on a ₹9 lakh individual investment at the prevailing 7.4% rate. A joint account with ₹15 lakh can generate about ₹9,250 per month.
The attraction is straightforward: predictable monthly interest from a government-backed small-savings product. But the ₹5,500 figure requires a substantial ₹9 lakh deposit, and investors must consider the five-year tenure, future interest-rate revisions, taxes and their own liquidity needs.
For conservative savers seeking regular income, POMIS can be worth evaluating—but it should be compared with other fixed-income and investment options before committing a large portion of savings.
Follow our blog for more updates on Post Office schemes, interest rates, personal finance and Indian investment news.
This article is for informational and educational purposes only and should not be considered investment advice
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