Post Office MIS: monthly income is ₹5,550, based on the entered inputs.
Monthly Income = Principal × Annual Interest Rate ÷ 12
| Input | Value |
|---|---|
| Investment Amount | ₹9,00,000 |
| Interest Rate | 7.4% |
| Monthly Income | ₹5,550 |
| Total Interest (5 yrs) | ₹3,33,000 |
| Total Received (incl. capital) | ₹12,33,000 |
| Annual Income | ₹66,600 |
How the Post Office MIS pays monthly income
The Post Office Monthly Income Scheme is exactly what it says: deposit a lump sum (up to ₹9 lakh single / ₹15 lakh joint), receive fixed monthly interest at ~7.4% for 5 years, and get the full capital back at maturity. The calculator turns your deposit into the monthly cheque.
Can I exit the MIS early?
After 1 year, yes with a haircut: closing between years 1-3 costs 2% of the deposit, and between 3-5 years costs 1%. No exit at all in the first year. The monthly payouts continue until closure, so the penalty is the only real cost of an early exit.
MIS or SWP from a mutual fund for monthly income?
MIS guarantees the payout and the capital — an SWP guarantees neither but historically grows the corpus if withdrawals stay moderate, and is taxed more gently (part-capital, part-gain vs fully-slab interest). Retirees commonly run both: MIS/SCSS as the guaranteed floor for essentials, SWP for the inflation-fighting layer.