MIS scheme interest rate this quarter, and what it pays

MIS scheme interest rate: what it pays

Because MIS pays interest out each month instead of adding it back, the rate you see is exactly what you earn. There is no hidden compounding to work out.

For any other amount, the MIS calculator gives the exact figure.

MIS rate of interest in post office: the many ways people ask

The MIS rate of interest in post office, the post office monthly income scheme interest rate, the interest rate of MIS in post office and the MIS scheme interest rate are all the same figure: 7.4% a year for the current quarter. There is only one post office MIS scheme interest rate, set for the whole country, and the MIS post office rate of interest does not vary by branch, city or age.

People also ask for the post office MIS interest rate for the last 10 years. The next section gives the broad path without a long table, because only your own opening rate affects your account. If you opened MIS years ago, look at your passbook for the MIS scheme in post office interest rate that applies to you.

How the MIS rate of interest has moved

The MIS rate tracks government bond yields with a margin. When yields fell some years ago, the rate dropped to 6.6% and stayed there for a long stretch. As yields climbed, it was raised in steps through 6.7%, 7.1% and 7.2% up to 7.4%, where it has held for many quarters.

What matters for you is that your rate is frozen on opening day. Someone who opened MIS at 6.6% still gets 6.6% until maturity, even though new accounts earn more. If you are waiting for a higher rate, remember it can just as easily go down.

Why the MIS rate is lower than SCSS and NSC

MIS pays you monthly, which costs the government more in administration and gives you the money sooner. NSC holds your interest for five years, and SCSS is restricted to older savers as a support measure. So the order is usually SCSS, then NSC, then MIS.

Interest after tax: what you actually keep

MIS interest is added to your income and taxed at your slab. Here is ₹9 lakh at 7.4%, which pays ₹66,600 a year:

Cess is extra. The post office does not deduct TDS on MIS, so plan to pay this tax yourself.

Does the post office MIS interest rate differ for senior citizens or women

No. Every MIS account earns the same 7.4%, whatever the holder's age or gender. There is no extra half percent for seniors as banks give.

Seniors who want a higher rate should look at the SCSS interest rate of 8.2%. Women have no separate MIS rate either; the special women's certificate that paid 7.5% has closed to new deposits.

Interest after the 5 years end

When MIS matures, monthly interest stops. If you leave the money in the matured account, it earns only savings account interest of 4.0% until you withdraw or reinvest. Most savers either open a fresh MIS at the rate of that quarter or move the money into SCSS if they have turned 60.

Set a reminder a month before maturity so the money does not sit idle.

Questions people ask at the counter

• Is the rate printed on my passbook? Yes, with the monthly amount.
• Can the post office change my rate later? No, it is fixed by the scheme rules.
• Is MIS interest the same at every post office? Yes, it is set for the whole country.

For the full rules, limits and early closure charges, read the main post office monthly income scheme guide.