MIS Calculation: How much do you need to invest to earn Rs 6,000 to Rs 9,000 every month?

What is the National Savings Monthly Income Scheme (MIS)?

The Monthly Income Scheme or MIS, is a simple way to earn a steady monthly income from your savings. Offered by India Post, it helps you get a fixed amount every month as interest on your investment — making it great for those who want regular, reliable money without risk.

What’s the current interest rate?

Starting January 2024, the MIS gives you an interest rate of 7.4% per year, and this interest is paid monthly. So, your money keeps working for you, and you get a paycheck every month without having to touch the principal amount.

How much should you invest? Minimum and maximum limits

You can open an MIS account with as little as Rs 1,000 — and then add money in steps of Rs 1,000. But there are limits too:

• You can invest up to Rs 9 lakh in your name in a single account.
• If you open a joint account (up to 3 adults), the maximum combined investment can be Rs 15 lakh.
• Each person’s total investment, including their share in joint accounts, can’t exceed Rs 9 lakh.

Who can open an MIS account?

Almost anyone can open an MIS account:

• Adults (single or joint account holders)
• Guardians for minors or people who can’t manage their finances
• Minors above 10 years can open their own accounts too
• It’s very inclusive and designed for all kinds of investors

How does the investment work?

You start with a minimum deposit of Rs 1,000, and then you can add more in multiples of Rs 1,000. In joint accounts, the money belongs equally to all members. And if you open an account for a minor, that investment limit is counted separately, so it doesn’t reduce your own limit.

How do you get your monthly income?

Each month, starting one month after you open the account, the interest amount is credited directly to your linked savings account. You don’t have to visit the post office or do anything manually. Just remember — if you don’t claim your monthly interest, it won’t earn more interest itself. Also, the interest you earn is taxable, so keep that in mind while planning.

What about early withdrawal?

You can’t take out money before one year. If you close your account between 1 and 3 years, the post office deducts 2% of your principal amount. If you close between 3 and 5 years, the deduction is 1%. To close your account early, you need to submit a form with your passbook at the post office.

What happens when the scheme matures?

After 5 years, your MIS account matures, and you can withdraw your entire principal amount. If the account holder passes away before maturity, the nominee or legal heirs can claim the money, including interest up to the last month.

How much do you need to invest to get Rs 6,000, Rs 7,000, Rs 8,000 and Rs 9,000 every month?

Here’s a quick idea based on the current interest rate:

• To get Rs 6,000 monthly, you need to invest around Rs 9.74 lakh
• For Rs 7,000 per month, invest about Rs 11.37 lakh
• For Rs 8,000 monthly income, it’s roughly Rs 12.97 lakh
• And for Rs 9,000 every month, you’ll need around Rs 14.60 lakh

Keep in mind, the individual investment cap is Rs 9,00,000, so to invest more, you may want to open a joint account.

Is MIS Right for You?

If you want a safe, worry-free way to earn regular income, MIS is a strong choice. It’s especially good if you’re retired or someone who wants a guaranteed monthly payout without the ups and downs of the stock market. Plus, since it’s backed by the government, your money stays safe.