Monthly Income Scheme: income on ₹3,00,000

A Post Office Monthly Income Scheme deposit of ₹3,00,000, at the official rate of 7.4%, pays ₹1,850 every month: ₹22,200 a year and ₹1,11,000 over the 5-year term. The deposit is returned at the end of 5 years.

Income at a glance

Deposit	₹3,00,000
Interest each month	₹1,850
Interest each year	₹22,200
Interest in 5 years	₹1,11,000

What this tells you

The limit is ₹9 lakh in a single account and ₹15 lakh in a joint account, so ₹3,00,000 fits a single account.
The NSI summary says the account can be closed early after one year.
The rate of 7.4% is the latest in the official table and is reviewed every quarter.

Before you invest

Before you deposit, check the rate for the quarter in which you open the account and the limit that applies to you, single or joint. Remember that the monthly income is interest only; the deposit is returned after 5 years, so plan what you will do with it then.

Common questions

How much monthly income does ₹3,00,000 give in MIS?

₹1,850 a month at 7.4%.

Is the rate fixed for 5 years?

This site cannot tell you how the post office applies a changed rate to an open account; ask at the post office.

Change the figures in the calculator

Sources

Interest rates for every quarter: National Savings Institute, Ministry of Finance, "Scheme Wise Interest Rate" table (nsiindia.gov.in), read on 13 November 2026. The latest quarter shown in that table was July-September 2026; the October-December 2026 column was empty on that date.
Minimum and maximum deposits, terms and withdrawal features: the same institute's "National Savings Schemes at a glance" page (nsiindia.gov.in), read on 13 November 2026.
PPF interest rule: Public Provident Fund Scheme, 2019, paragraph 7, as published by the National Savings Institute (nsiindia.gov.in), read on 13 November 2026: the lowest balance between the close of the fifth day and the end of the month earns interest, at a rate per annum, and interest is credited at the end of each year. The same paragraph, as amended by G.S.R. 290(E) of 5 May 2020, fixes 7.1% a year for deposits from 1 April 2020.
What the texts do not spell out and this site assumes: a month earns one twelfth of the yearly rate, and interest is rounded to the rupee when it is added. Sukanya Samriddhi follows the same pattern in the way we work it; the recurring deposit and time deposit figures compound every quarter, as NSI says for the time deposit; the rule texts of those schemes were not opened. Every result is an estimate and a passbook can differ by a few rupees.

Rates and limits read on 13 November 2026 from the National Savings Institute. They are set by the government for each quarter and can change; the rates shown are those of July to September 2026, so treat them as out of date after 31 December 2026 unless this page has been updated. This is arithmetic, not investment advice; check the current rate at a post office, an authorised bank or indiapost.gov.in before you invest.