Looking for a steady monthly income with zero market risks? The Post Office Monthly Income Scheme (MIS) for 2025 might just be the perfect match. Backed by the Government of India, this small savings scheme is designed for conservative investors who want guaranteed returns and consistent monthly payouts. With the new interest rate updates and deposit limits for 2025, you can now earn ₹9,250 every month—and it’s easier than you think.
What Is the Post Office Monthly Income Scheme (MIS)?
The Post Office MIS is a fixed-income saving scheme where you invest a lump sum amount and receive monthly interest as income. It’s ideal for:
- Retirees seeking passive income
- Homemakers and conservative investors
- Parents planning minor’s future income
What’s New in Post Office MIS 2025?
The government has made some crucial updates for the 2025 cycle, including:
- Revised interest rate: 7.7% per annum (as of Q1 FY 2025–26)
- Increased investment limits – Now you can invest up to:
- ₹9 lakh for a single account
- ₹15 lakh for a joint account
These changes open the door for higher monthly payouts than previous years.
How to Earn ₹9,250 Monthly From Post Office MIS
To generate a monthly income of ₹9,250, here’s what your investment needs to look like:
- Interest Rate: 7.7% per annum
- Investment Amount: ₹15 lakh (maximum allowed in a joint account)
- Annual Return: ₹1,15,500
- Monthly Payout: ₹1,15,500 ÷ 12 = ₹9,625
So, with a joint MIS account and full investment of ₹15 lakh, you can comfortably receive ₹9,250+ every month.
Post Office MIS Interest Rate in 2025
The interest rate for MIS is revised quarterly by the Ministry of Finance. As of April–June 2025, the rate stands at:
✅ 7.7% per annum, payable monthly
This rate is fixed at the time of deposit and stays the same throughout the 5-year tenure.
Deposit Limit in 2025
The Post Office has set the following investment limits:
- Single Account: ₹9 lakh maximum
- Joint Account: ₹15 lakh (shared by both holders)
You can open multiple MIS accounts as long as your total investment doesn’t exceed the cap.
Eligibility Criteria
To open a Post Office MIS account in 2025, you must be:
- A resident Indian citizen
- At least 18 years of age
- A minor above 10 years can also invest under a guardian’s supervision
NRIs are not eligible to invest in the scheme.
Account Types & Ownership
You can open:
- A single account in your name
- A joint account (up to 3 adults)
- A minor account operated by a guardian
Joint accounts offer the best monthly payout and higher investment cap.
How to Open a Post Office MIS Account
Step-by-step:
- Visit your nearest post office
- Collect and fill Form-A
- Submit ID proof, address proof, passport-size photos
- Deposit amount via cheque or cash
- Choose account type (single/joint)
- Link your post office savings account for monthly payouts
The account opens immediately, and monthly interest begins from the date of deposit.
Monthly Interest Payouts: How They Work
- Interest is credited monthly into your linked Post Office Savings Account
- Payout date: Exactly one month after deposit date
- You must manually withdraw or set up auto-transfer if required
No compounding takes place—interest is paid out, not reinvested.
Tax Implications
While MIS offers assured income, remember:
- Interest earned is taxable under “Income from Other Sources”
- No TDS is deducted by the post office
- You’ll need to declare income while filing returns
Consider clubbing it with tax-saving investments to balance out the liability.
Benefits of Post Office MIS
- ✅ Guaranteed income every month
- ✅ Backed by Govt. of India
- ✅ No market risk
- ✅ Simple documentation
- ✅ Best for retirees and conservative investors
Limitations to Consider
- ❌ No compounding of interest
- ❌ 5-year lock-in period
- ❌ Premature withdrawal penalty applies
- ❌ No online account opening yet
- ❌ Not inflation-proof
Comparison With Other Monthly Income Options
| Scheme | Interest Rate | Risk | Lock-In | Monthly Income |
|---|---|---|---|---|
| Post Office MIS | 7.7% | None | 5 years | ₹9,250 on ₹15L |
| SCSS | 8.2% | None | 5 years | Higher for senior citizens |
| Bank FDs | ~6.5–7% | Low | 1–5 years | Varies |
| Mutual Fund MIPs | 8–10% avg. | Moderate | No lock-in | Not guaranteed |
MIS stands out for zero-risk and stable income, though it lacks tax efficiency.
Tips to Maximize Returns From MIS
- Use joint accounts to invest the full ₹15 lakh
- Reinvest the monthly ₹9,250 in recurring deposit or SIP
- Combine with SCSS or PMVVY for diversified income
Final Thoughts
The Post Office MIS 2025 remains a fantastic choice for investors seeking stable monthly income without market exposure. With its increased limits and reliable payouts, it’s now easier than ever to earn ₹9,250 per month by simply saving smartly. Whether you’re retired or just want passive earnings, this scheme can secure your financial future with peace of mind.
FAQs
Q1. Can I open a Post Office MIS account online?
No, currently MIS accounts can only be opened by visiting a post office physically.
Q2. Is MIS interest tax-free?
No, the interest earned is fully taxable under your income slab.
Q3. Can I withdraw money before 5 years?
Yes, but with a penalty: 1–2% deduction depending on how early you withdraw.
Q4. Can I open more than one MIS account?
Yes, but your total deposits across all accounts must not exceed the investment limit.
Q5. Is the ₹9,250 payout guaranteed every month?
Yes, provided you invest ₹15 lakh at the current interest rate of 7.7%.