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Post Office MIS vs Bank FD Where to Invest Rs 9 Lakh for Higher Returns
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News18•17-10-2026, 17:38
Post Office MIS vs Bank FD Where to Invest Rs 9 Lakh for Higher Returns
- •Investing Rs 9 lakh in the Post Office MIS at an annual interest rate of 7.4 percent yields a monthly income of Rs 5,550 before tax deductions.
- •A bank FD with an estimated annual interest rate of 6.5 percent on Rs 9 lakh generates a pre-tax monthly income of approximately Rs 4,875.
- •The tenure of the Post Office MIS is five years, allowing a maximum investment of Rs 9 lakh in a single account and up to Rs 15 lakh in a joint account.
- •Premature closure of a Post Office MIS account is permitted after one year with certain deductions from the principal amount.
Key Questions Answered
With an annual interest rate of 7.4% for the October–December quarter of 2026, investing Rs 9 lakh in the Post Office Monthly Income Scheme (MIS) yields an interest of Rs 5,550 per month before tax deductions.
The Post Office MIS account cannot be closed during the first year. If closed after one year but before three years, 2% of the principal is deducted, whereas closing it after three years incurs a 1% deduction from the principal.
Calculating at an annual interest rate of 6.5%, the pre-tax monthly income on a bank fixed deposit of Rs 9 lakh is approximately Rs 4,875, though actual returns may vary depending on bank payout methods and conditions.
