The Post Office MIS Interest Rate 2026 is 7.4% per annum for the October–December quarter, not 7.6% as some headlines may suggest.
The Post Office Monthly Income Scheme (POMIS) is designed for people who want predictable monthly interest income from a one-time deposit.
The government has kept the scheme’s rate unchanged for the current quarter.
The scheme may appeal to retirees and conservative savers who prefer a government-backed small savings option over investments exposed to market fluctuations.
However, investors should consider the deposit limits, five-year lock-in period and tax treatment before opening an account.
 Post Office MIS Interest Rate 2026 and Key Features
The Post Office Monthly Income Scheme currently offers 7.4% annual interest, payable monthly.
The rate applicable when an account is opened is fixed for its five-year tenure, allowing depositors to estimate their regular interest payments.
A single adult can invest up to Rs 9 lakh in an individual account. A joint account can accept a maximum deposit of Rs 15 lakh, subject to the scheme’s rules.
The minimum investment is Rs 1,000, with deposits made in multiples of Rs 1,000.
The scheme can be opened by an adult individually or jointly by up to three adults.
A guardian may also open an account on behalf of an eligible minor, and a minor above 10 years can open an account in their own name under the applicable rules.
 How Much Monthly Income Can You Earn?
The monthly income depends on the amount deposited and the applicable interest rate. At 7.4% per annum, the estimated interest payments are:
Rs 1 lakh deposit: about Rs 617 per month
Rs 3 lakh deposit: Rs 1,850 per month
Rs 5 lakh deposit: about Rs 3,083 per month
Rs 9 lakh deposit: Rs 5,550 per month
Rs 15 lakh joint-account deposit: Rs 9,250 per month
These figures represent interest income, not a return of the original deposit.
The principal remains invested during the five-year term and is repaid at maturity, subject to the scheme’s rules.
The monthly interest is generally credited or paid to the account holder.
Unclaimed interest does not earn additional interest under the scheme, so investors should arrange a suitable way to receive and use their monthly payments.
Who Should Consider the Post Office Monthly Income Scheme?
POMIS may suit people who want regular income without relying on stock market returns.
It can be useful for retirees, conservative investors and households that want to supplement other sources of income with a predictable monthly payment.
Unlike market-linked investments, the scheme offers a notified interest rate for the account’s tenure.
However, the interest earned is taxable according to the depositor’s applicable income-tax rules, and the scheme does not provide a tax deduction simply for making a deposit.
Investors should also compare the scheme with other small savings options.
For the October–December 2026 quarter, the Senior Citizens’ Savings Scheme offers 8.2% annual interest to eligible investors, although its eligibility conditions differ from those of POMIS.
Withdrawal Rules, Maturity and Important Points
The Post Office Monthly Income Scheme has a five-year maturity period.
Premature closure is not permitted during the first year.
After one year but before three years, a 2% deduction from the principal applies; after three years but before five years, the deduction is 1%, subject to the prescribed rules.
At maturity, the depositor can claim the principal amount.
Those who need their money earlier should carefully consider the premature-closure conditions before investing.
The scheme’s interest rate is reviewed by the government periodically alongside other small savings rates.
For the current quarter, the notified rate remains 7.4% per annum.
Anyone considering an account should verify the latest rate and terms with India Post before depositing money.
Overall, POMIS offers a straightforward way to convert a lump sum into regular monthly income.
Its suitability depends on the investor’s income needs, tax position, access-to-money requirements and alternative investment choices.
