Stories
MIS vs FD: Where to get higher returns on 1 lakh rupees investment
N
News18•17-10-2026, 15:25
MIS vs FD: Where to get higher returns on 1 lakh rupees investment
- •The Post Office Monthly Income Scheme offers an annual interest rate of 7.4 percent with monthly payouts.
- •State Bank of India offers an annual interest rate of 6.05 percent for a 5-year general fixed deposit.
- •Investing 1 lakh rupees in Post Office MIS yields a total interest of 37,000 rupees over 5 years, paying about 617 rupees monthly.
- •Investing 1 lakh rupees in a 5-year FD at 6.05 percent with quarterly compounding yields an estimated interest of 34,800 rupees at maturity.
- •Choose MIS if you need a regular monthly income, or FD if you prefer a lump sum amount at the end of the tenure.
Key Questions Answered
For the October to December quarter of 2026, the annual interest rate on the Post Office Monthly Income Scheme (MIS) is 7.4 percent, with interest paid out every month.
If you invest 1 lakh rupees in the Post Office MIS at 7.4 percent interest, you receive about 617 rupees monthly, totaling 37,000 rupees in interest over 5 years. In contrast, keeping 1 lakh rupees in a State Bank of India 5-year FD at 6.05 percent yields an estimated 34,800 rupees in interest at maturity.
An MIS account cannot be closed within the first year of opening. After the initial one-year period, it can be closed prematurely under specific conditions and rules established by the scheme.
