Post Office Update 2026: The Post Office Monthly Income Scheme (MIS) is an excellent option for investors looking for secure and regular income. As of February 2026, the government offers 7.4% annual interest on this scheme.
The key feature of this scheme is that you only need to deposit a lump sum once, and you receive a guaranteed monthly income for the next five years. For investors and senior citizens who are averse to market risk, this scheme works like a regular salary.
Investment Limits and Joint Account Rules
You can open a Post Office MIS account individually or jointly with family members, as per your convenience. According to the rules, you can deposit a maximum of ₹9 lakh in a single account. However, if you open a joint account with your wife or another family member, the maximum investment limit increases to ₹15 lakh.
A joint account can include up to three adult members, and each member has an equal share in the deposit. The minimum amount to open this account is just ₹1,000, making it accessible even to small investors.
How to Earn ₹9,250 a Month
If you and your spouse invest a maximum of ₹15 lakh in this scheme’s joint account, your annual income will be ₹1,11,000 at the current interest rate of 7.4%. When this annual interest is divided over 12 months, you receive a fixed monthly sum of ₹9,250.
This amount is directly deposited into your Post Office savings account or linked bank account. After the 5-year maturity period, your entire principal amount (₹15 lakh) is returned to you, which you can reinvest if you wish.
Premature Withdrawal
The maturity period of this scheme is 5 years, but under special circumstances, you can close it prematurely. However, withdrawals before one year are not permitted. If you close the account after one year and before three years, a penalty of 2% of the principal amount is deducted.
However, if you withdraw after three years and before five years, a penalty of 1% is deducted. It’s important to note that this scheme doesn’t offer any tax exemption (under Section 80C) on the deposits, and the interest earned is added to your annual income, which may be taxable according to your tax slab.
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Vikram Singh
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