If you're hunting for a safe, guaranteed, and tax-friendly monthly income plan in 2025, the Post Office Monthly Income Scheme (MIS) might just tick all your boxes. Backed by the Government of India, this scheme is now offering 7.5% annual interest, and with a joint investment of ₹9 lakh, you can earn up to ₹18,350 monthly-all without worrying about stock market swings.
Let's break it all down in a clean, easy-to-understand format.
Interest Rate: 7.5% per annum (updated for 2025)
Payout: Monthly
Tenure: 5 years
Minimum Investment: ₹1,000
Maximum Investment:
₹4.5 lakh (Single account)
₹9 lakh (Joint account - up to 3 adults)
Risk Level: Very low (government-backed)
|
Investment Amount |
Annual Interest |
Monthly Income |
|
₹1,00,000 |
₹7,500 |
₹625 |
|
₹4,50,000 |
₹33,750 |
₹2,812.50 |
|
₹9,00,000 (Joint) |
₹67,500 |
₹5,625 |
🔄 Reinvest wisely: If you and your spouse both invest ₹9 lakh in two separate joint accounts, you could technically generate up to ₹11,250/month combined.
This scheme is a blessing for:
✅ Retired individuals needing fixed monthly income ✅ Parents looking for stable returns to support kids' education or other monthly needs ✅ Risk-averse investors who prefer safety over high returns ✅ Anyone tired of market-linked uncertainties
|
Scheme |
Interest Rate |
Risk Level |
Payout Frequency |
|
Post Office MIS |
7.5% |
Very Low |
Monthly |
|
Senior Citizens Savings |
8.2% |
Very Low |
Quarterly |
|
Bank FDs |
6.0-7.25% |
Low |
Varies |
|
Mutual Fund MIPs |
6-9% (variable) |
Moderate |
Monthly (market-dependent) |
|
Corporate Bonds |
7-9% |
Moderate |
Monthly/Quarterly |
💡 MIS stands out for those prioritizing capital security and fixed monthly payouts.
🔒 100% Capital Safety - Backed by the Government of India
📅 Monthly Income - Predictable and regular
🏦 Simple Process - Open an account at any post office
🔄 Transferable - Shift accounts between post offices if needed
👨👩👧👦 Joint Holding - Up to 3 adults can hold one account
💵 No TDS - Interest is taxable, but no TDS is deducted
Visit your nearest post office
Carry:
Aadhaar card
PAN card
Passport-size photos
Address proof
Fill out the MIS account opening form
Nominate a beneficiary
Deposit the investment amount via cash, cheque, or bank transfer
Auto-credit option available for monthly interest to your savings account.
❌ Premature Withdrawal: Allowed only after 1 year (with penalty)
🔁 No Compounding: Interest is paid monthly, not reinvested
📉 Interest is Taxable: Falls under your income tax slab
🚫 Not for NRIs or HUFs: Only resident Indian individuals are eligible
The government revised the interest rate to 7.5% in Q1 2025, making it one of the most rewarding fixed-income options today-especially amid global market volatility and rate cuts by banks.
If you:
Want a guaranteed monthly return
Don't want to worry about stock market risks
Are looking for a secure backup plan post-retirement
…then Post Office MIS 2025 is worth considering.
It may not offer the highest returns, but it offers stability, peace of mind, and consistent income-a combination that's hard to beat in uncertain times.
Final Tip: Combine MIS with other schemes like the Senior Citizens Savings Scheme (SCSS) or Bank FDs to build a well-balanced, income-generating portfolio.