Post Office Monthly Income Scheme 2026: The Post Office Monthly Income Scheme is a government-backed savings plan designed to provide stable monthly income with low risk. In 2026, it remains a trusted option for people seeking regular earnings from safe investments. The scheme offers fixed interest and capital protection, making it especially popular among retirees and conservative investors across India.
Many people are attracted by claims that depositing ₹2 lakh can generate ₹15,000 monthly income. However, such claims are not accurate based on current interest rates. This article explains the real benefits, returns, rules, and facts about the Post Office MIS Scheme 2026 with correct figures and simple details.
Post Office MIS Scheme 2026 Interest Rate And Monthly Income Details
The Post Office Monthly Income Scheme currently offers an interest rate of around 7.4 percent per year, paid monthly. This fixed rate helps investors receive steady income without market risk. Interest is credited directly to the savings account every month, making it easy to manage expenses.
If a person invests ₹2 lakh, the yearly interest earned is about ₹14,800. This means the monthly income comes to around ₹1,200. The scheme is best suited for those who want consistent returns rather than high profits from risky investments.
Government Guarantee And Safety Benefits Of Post Office MIS
The scheme is backed by the Government of India, making it one of the safest savings options available. The invested amount remains protected throughout the five-year period. This security makes it a reliable choice for people who do not want to risk their money in the stock market.
Because the returns are fixed, investors can plan their monthly budget without worrying about market fluctuations. This guarantee attracts retirees, senior citizens, and individuals looking for steady financial support through regular monthly interest payments.
Post Office Monthly Income Scheme 2026 Overview
| Feature | Details |
|---|---|
| Scheme Name | Post Office Monthly Income Scheme 2026 |
| Interest Rate | Around 7.4% per year |
| Tenure | 5 Years |
| Minimum Investment | ₹1,000 |
| Maximum Investment Single Account | ₹9 Lakh |
| Maximum Investment Joint Account | ₹15 Lakh |
| Monthly Income On ₹2 Lakh | Around ₹1,200 |
| Income Payout | Monthly |
| Risk Level | Very Low |
| Backed By | Government of India |
Eligibility Criteria And Who Can Open An Account
Any Indian resident can open a Post Office MIS account individually or jointly. Adults can open an account in their own name, and guardians can open accounts for minors. Joint accounts allow up to three adults to invest together.
This scheme is ideal for retired persons, homemakers, and individuals seeking monthly financial stability. People who prefer safe and fixed returns often choose this option for regular income without market risks.
Investment Limits And Deposit Rules For Investors
The scheme allows a minimum investment of ₹1,000, making it accessible to small investors. The maximum investment limit is ₹9 lakh for a single account and ₹15 lakh for a joint account. These limits help ensure wider participation while maintaining controlled risk.
Deposits can be made through cash or cheque at any post office. Once invested, the interest rate remains fixed for the full five-year period, giving investors predictable and stable monthly returns.
Real Income Calculation From ₹2 Lakh Investment
At an interest rate of 7.4 percent, a ₹2 lakh investment earns about ₹14,800 in interest per year. When divided monthly, this provides an income of around ₹1,200. This amount is fixed and continues every month for five years.
Many viral claims suggest higher returns, but they are not correct. The scheme focuses on safety and stability rather than high profits. Investors should calculate expected income carefully before making financial decisions.
Tax Rules And Financial Planning Considerations
The interest earned from the Post Office MIS is taxable as per the investor’s income tax slab. There is no tax deduction at source, but the total interest must be reported while filing income tax returns. This is an important factor to consider for planning.
Despite tax liability, many people prefer this scheme because of guaranteed returns. It can be combined with other savings plans to create a balanced and steady monthly income source.
Premature Withdrawal And Maturity Benefits Explained
Investors can withdraw their money before five years, but a small penalty is applied. Withdrawal is allowed after one year, but the earlier the withdrawal, the higher the deduction from the principal amount.
At maturity, the full invested amount is returned to the account holder. Many investors choose to reinvest the amount again to continue receiving regular monthly income for long-term financial stability.
Comparison With Other Safe Government Saving Schemes
Compared to fixed deposits and savings accounts, the MIS offers better monthly income stability. Unlike market-linked schemes, the returns here are fixed and not affected by economic changes or stock market performance.
While schemes like Public Provident Fund offer long-term growth, MIS focuses on monthly payouts. This makes it more suitable for people who need regular financial support rather than long-term wealth creation.
Final Thoughts
The Post Office MIS Scheme 2026 remains one of the safest investment options for generating regular monthly income. It is supported by the government and offers fixed interest, making it reliable for people who prefer secure financial planning.
Although ₹2 lakh cannot generate ₹15,000 per month, the scheme still provides steady returns and peace of mind. It is a practical option for individuals seeking safe and predictable monthly earnings without taking financial risks.