Post Office MIS Scheme 2026 | Monthly Income Scheme | Investment, Returns & New Rules Explained

The Post Office Monthly Income Scheme (MIS) 2026 is one of the most popular and trusted government-backed saving schemes in India. This scheme is specially designed for investors who want regular monthly income with complete safety of capital. Because it is supported by the Government of India, the risk involved is almost zero, making it ideal for conservative investors.


Post Office MIS is best suited for senior citizens, retired employees, housewives, and individuals who depend on fixed monthly income. Under this scheme, you invest a lump sum amount once, and the post office pays you interest every month directly into your savings account.


The interest rate of Post Office MIS in 2026 is 7.4 percent per annum, which is paid on a monthly basis. Once you invest, the interest rate remains fixed for the entire 5-year maturity period, even if rates change later. The maturity period of this scheme is five years, and after maturity, you can withdraw the amount or reinvest it again.


The minimum investment required to open a Post Office MIS account is ₹1,000, and investment must be made in multiples of ₹1,000. The maximum investment limit for a single account is ₹9 lakh, while for a joint account it is ₹15 lakh. A joint account can be opened by up to three adults, and all account holders have equal rights.


If you invest ₹1 lakh, you get around ₹616 per month as income. On ₹5 lakh investment, the monthly income becomes approximately ₹3,083. For the maximum single account investment of ₹9 lakh, the monthly income is around ₹5,550. This makes MIS a good option for people who need steady cash flow.


Premature withdrawal is allowed after one year, but a penalty is applicable. If the account is closed between one and three years, a 2 percent deduction is applied. If closed between three and five years, a 1 percent deduction is charged. No premature closure is allowed before one year.


From a tax point of view, Post Office MIS does not provide any tax benefit under Section 80C. The interest earned is fully taxable as per the investor’s income tax slab, and no TDS is deducted by the post office. Investors must declare the interest income while filing their income tax return.


Overall, Post Office MIS Scheme 2026 is an excellent option for those who want safe, guaranteed, and regular monthly income. While it may not give very high returns, it offers peace of mind, stability, and government security, making it a reliable choice for long-term income planning.