- Deposit
- Total interest
- Monthly income
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- Total interest over tenure
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- Deposit returned on maturity
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Figures are estimates for planning only, not investment or tax advice.
The Post Office Monthly Income Scheme pays interest every month on a lump sum deposited for five years, and returns the deposit intact at the end. This calculator shows the monthly cheque and the total interest.
Limits
₹9 lakh in a single account and ₹15 lakh in a joint account. At 7.4%, the maximum single-account deposit pays ₹5,550 a month, and a joint account ₹9,250.
What it is good for
Predictable income with sovereign backing — suitable for retirees who need a monthly cheque and cannot take capital risk. Nothing compounds, so it is a poor growth vehicle; the interest is also fully taxable and has no 80C benefit.
Frequently asked questions
Is the interest taxable?
Yes, at your slab rate. There is no TDS, but you must declare it.
Can I withdraw before five years?
After one year, with a penalty of 2% of the deposit; after three years, 1%.
Can I reinvest the monthly interest?
Yes — many depositors route it into a recurring deposit at the same post office.