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Post Office MIS RD:By using the post office’s MIS (Monthly Income Scheme) and RD (Recurring Deposit) scheme together, investors get such a sure source of monthly regular income, which seems like a dream. Both these government savings schemes not only keep your capital safe but also give assured returns.

By depositing a lump sum amount in MIS (Monthly Income Scheme), fixed interest comes home every month, whereas by depositing monthly installments in RD (Recurring Deposit), a habit of saving is formed. Therefore, investing by combining these two gives double benefit – on one hand monthly income, on the other hand a strong base of regular savings. If you are retired or looking for regular income to run your household, then these Post Office Schemes can prove to be a gold mine for you.

The duration of MIS (Monthly Income Scheme) scheme is exactly 5 years, in which the government pays interest every month at a fixed interest rate. At the same time, RD (Recurring Deposit) also has a fixed period of 5 years, where a fixed amount has to be deposited every month and the interest increases in a compound manner. Both the schemes have a government guarantee, which keeps your deposit 100% safe.

There is also a provision for inaccuracy protection, so these are the best option especially for retired people or those who want regular income. Government savings schemes like Post Office’s MIS (Monthly Income Scheme) and RD (Recurring Deposit) really provide relief in today’s inflationary times.

What is Post Office Monthly Income Scheme (MIS)?

Post Office Monthly Income Scheme (MIS) is a savings scheme that gives investors fixed interest every month on investing a lump sum amount. Its simple objective is to provide regular monthly income, which is perfect for children’s education, pension for retirees or small household expenses. This scheme is for 5 years, in which minimum investment starts from just Rs 1000.

If you open an individual account, you can invest a maximum of Rs 9 lakh.

The interest rate of MIS (Monthly Income Scheme) is 7.4% per annum from April 2025, which is available in the form of direct monthly payment. The government completely protects this deposit, hence it is considered the safest option for investment.

Yes, tax has to be paid on interest, but overall it is a reliable source of financial stability. Government savings schemes like Post Office’s MIS (Monthly Income Scheme) are special for those who want to stay away from risk.

What is Post Office Recurring Deposit (RD)?

In Recurring Deposit (RD) scheme, you deposit at least an installment of Rs 100 every month, which continues for a fixed period like 5 years. Here the interest is given on the basis of compounding, which means interest keeps getting added on the interest, due to which your savings grow rapidly. RD (Recurring Deposit) has no upper limit, so it is ideal for regular savings—be it small or large amounts.

From July 2025, the interest rate on RD (Recurring Deposit) is 6.7% per annum, which is compounded quarterly. On completion of 5 years, the interest is received together with the entire deposit amount. Here also the amount remains safe under the guarantee of the government. On top of that, there is also the facility of premature withdrawal or taking a loan, which makes it more flexible. Post Office’s RD (Recurring Deposit) scheme is a great way to inculcate the habit of saving.

How to get double benefit from MIS + RD scheme?

With MIS (Monthly Income Scheme), you get fixed income every month, which easily covers the daily expenses of the house. Whereas, in RD (Recurring Deposit), your monthly installments get accumulated and increase with time, which creates a strong fund for retirement or any emergency.

In this way, MIS (Monthly Income Scheme) takes care of the monthly income, while RD (Recurring Deposit) grows your capital through regular savings. By combining both, Post Office Schemes provide investors with an opportunity for financial stability that lasts for a long time. This combination can prove to be a game-changer, especially for middle class families.

Detailed Summary of Post Office MIS and RD Scheme

The table below gives an easy comparison of the main features of MIS (Monthly Income Scheme) and RD (Recurring Deposit) schemes of the post office:

Benefits of MIS and RD and things to keep in mind

Both MIS (Monthly Income Scheme) and RD (Recurring Deposit) schemes of the post office have government guarantee, due to which your entire deposit amount remains absolutely safe. MIS (Monthly Income Scheme) brings fixed income every month, which helps in keeping the budget balanced. RD (Recurring Deposit) inculcates the habit of regular savings and your money doubles-triples with compound interest. Both also have flexible features like account transfer and nomination.

However, there is no direct benefit in terms of tax—interest income has to be taxed. Keep in mind that the interest rates of MIS (Monthly Income Scheme) and RD (Recurring Deposit) may change from time to time, depending on the decisions of the government. Some restrictions and penalties also apply on withdrawals in MIS (Monthly Income Scheme). Overall, these Post Office Schemes are the top choice among government savings schemes, offering a perfect blend of simplicity and security.