For October–December 2026, ₹9 lakh in the Post Office Monthly Income Scheme (MIS) produces ₹5,550 gross per month. Using State Bank of India’s published 5-year-to-10-year retail fixed-deposit rate of 6.05% as a clearly identified bank benchmark, the same principal has a simple monthly equivalent of ₹4,537.50 before SBI’s discounted monthly-payout calculation. On these rates, MIS pays ₹1,012.50 more per month on headline arithmetic.
A senior-citizen SBI rate of 7.05% narrows the simple monthly equivalent to ₹5,287.50, but it remains below MIS’s ₹5,550 before the bank’s payout adjustment. Your actual choice still depends on rate validity at booking, tenure, access rules, depositor category and tax.
As an Amazon Associate I earn from qualifying purchases.
Monthly income from ₹9 lakh: the calculation
| Product and rate | Calculation on ₹9,00,000 | Monthly amount | Important qualification |
|---|---|---|---|
| Post Office MIS at 7.4% per year | ₹9,00,000 × 7.4% ÷ 12 | ₹5,550 gross | Rate and payout apply to the October–December 2026 quarter; MIS pays monthly. |
| SBI public FD benchmark at 6.05% | ₹9,00,000 × 6.05% ÷ 12 | ₹4,537.50 monthly equivalent | SBI states that monthly interest is calculated for the quarter and paid at a discounted rate, so the credited amount can be slightly different. |
| SBI senior-citizen FD benchmark at 7.05% | ₹9,00,000 × 7.05% ÷ 12 | ₹5,287.50 monthly equivalent | The same SBI discounted-rate rule applies to monthly payouts. |
The MIS figure is annual interest of ₹66,600 divided into 12 monthly payments. Against the public-rate SBI benchmark, the difference is ₹1,012.50 a month, or ₹12,150 over a full year before tax. The comparison uses arithmetic equivalents for the FD; it is not a promise of the exact monthly credit.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
How Post Office MIS works for this investment
Rate and payment schedule
India Post lists MIS at 7.4% per annum payable monthly for the October–December 2026 quarter. The interest is paid each month, while the deposited principal is returned at maturity under the scheme rules.
#1 Best Overall
Account limit and term
A ₹9 lakh single MIS investment is within the published single-account ceiling. The published table lists a ₹15 lakh ceiling for a joint account. MIS has a five-year term, so the money is committed to that schedule rather than being an on-demand savings balance.
Rate-reset risk
Small-savings rates are announced for individual quarters. The 7.4% rate should therefore be treated as the rate for October–December 2026, not as a guaranteed rate for a new account opened in a later quarter or for a renewal.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
What the bank FD comparison really means
There is no single “bank FD rate”
FD pricing varies by institution, tenure, depositor category and whether interest is paid monthly, quarterly or at maturity. SBI is used here only as a transparent benchmark: its published public rate for the 5-year-to-10-year band is 6.05%, while its listed senior-citizen rate is 7.05%. Another bank or a different tenor can produce a different result.
Monthly payout is not the same as annual rate divided by 12
SBI’s deposit-rate explanation says that, for monthly payment, interest is calculated for the quarter and paid at a discounted rate. Consequently, ₹4,537.50 and ₹5,287.50 are comparison figures from the quoted annual rates; check the bank’s live monthly-payout quote before booking.
Tenure and early withdrawal
Unlike MIS’s stated five-year structure, FD terms and premature-withdrawal rules are bank-specific. Breaking an FD early can involve a lower applicable rate or a penalty. Confirm the lock-in, notice process and penalty schedule before selecting a monthly-income option.
Gross income is not take-home income
Interest from both MIS and bank FDs can be taxable. A universal post-tax monthly figure would be misleading because the result depends on your tax slab, age, deductions and other income. Compare the products using your own tax position, and account for any applicable withholding or advance-tax obligations.
Rank #4
Which option fits which priority?
| If your priority is… | What the cited figures indicate |
|---|---|
| Highest gross monthly cash flow at the stated rates | MIS leads at ₹5,550 versus the SBI public-rate equivalent of ₹4,537.50. |
| A senior-citizen bank rate | The SBI 7.05% equivalent is ₹5,287.50, still below MIS before payout discounting. |
| A defined five-year government small-savings structure | MIS has a five-year term, monthly interest and a stated account ceiling. |
| Flexible tenor or bank-specific features | An FD may offer different terms and payout choices, but rules and rates must be checked with the chosen bank. |
| Predictable long-term rate | Compare the rate at booking: MIS rates can reset by quarter, while an FD’s booked rate generally follows the bank’s terms for that deposit. |
Before investing the ₹9 lakh
- Confirm that 7.4% is the applicable MIS rate for the quarter in which you open the account.
- Decide whether the account is single or joint and verify the relevant ceiling; ₹9 lakh fits within the published single-account limit, while the joint-account table shows ₹15 lakh.
- Ask the bank for the exact monthly-payout amount, not only the headline annual FD rate.
- Check the FD tenor, premature-closure penalty and how the bank handles monthly credits.
- Estimate net income using your tax slab, age, deductions and other taxable income.
- Keep a maturity plan: MIS returns principal at the end of five years, while an FD’s maturity date depends on the tenor you select.
Verdict
At the October–December 2026 rates cited here, Post Office MIS is the higher gross monthly-income option for ₹9 lakh: ₹5,550 per month versus ₹4,537.50 as the SBI public-FD arithmetic equivalent. Even the SBI senior-citizen equivalent of ₹5,287.50 is lower before SBI’s monthly-payout discount. Recheck the live rates and payout quote when investing, and make the final decision after tax and access requirements are included.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallCrashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteQuick Recap
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
