Neutral impactStocks
₹9 lakh in Post Office MIS vs ₹9 lakh in bank FD: Which gives a higher monthly income?
Mint 1 hr ago·17 Oct 2026, 5:39 am
A Post Office Monthly Income Scheme (MIS) offers a fixed monthly payout to investors, making it a popular choice for those seeking regular income. With a minimum investment of ₹1,500 and a maximum of ₹9 lakh, the scheme currently offers an interest rate of 7.4% per annum. This translates to a monthly income of ₹5,550 on a ₹9 lakh deposit. In comparison, a similar investment in a bank fixed deposit (FD) at a 6.5% interest rate would yield a monthly payout of ₹4,875. While the Post Office MIS provides a higher monthly income, it is essential to consider factors such as tenure, liquidity, and tax implications before making a decision.
For investors, the key difference lies in the higher interest rate and guaranteed monthly income of the Post Office MIS, which can be a reliable source of cash flow. However, the scheme has a lock-in period of 5 years, and premature withdrawal is not permitted. Additionally, the interest earned is taxable under the head 'Income from Other Sources'. On the other hand, bank FDs offer more flexibility in terms of tenure and liquidity, but with a lower interest rate. Investors should weigh these factors carefully to determine which option aligns better with their financial goals and risk appetite.
Key takeaways
- Category: Stocks.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
