retirement
SCSS and Post Office MIS: Monthly Income for Retirees
By Himanshu Kumar Gupta · · 5 min read
₹30 lakh in the Senior Citizen Savings Scheme pays ₹61,500 every quarter at 8.2%, which is ₹20,500 a month. A joint Post Office Monthly Income Scheme account of ₹15 lakh adds ₹9,250 a month at 7.4%.
The two schemes at a glance
| SCSS | Post Office MIS | |
|---|---|---|
| Rate (Jul–Sep 2026) | 8.2% a year | 7.4% a year |
| Interest paid | Every quarter | Every month |
| Maximum deposit | ₹30 lakh | ₹9 lakh single, ₹15 lakh joint |
| Tenure | 5 years, extendable | 5 years |
Both rates are set by the government and reviewed every quarter. Check the current rate before you put money in.
How the payouts are worked out
The maths is simple. SCSS pays amount × rate ÷ 4 every quarter. MIS pays amount × rate ÷ 12 every month. The deposit itself is not touched.
Income by amount invested
| Amount | MIS monthly income | SCSS quarterly income | SCSS per month |
|---|---|---|---|
| ₹5 lakh | ₹3,083 | ₹10,250 | ₹3,417 |
| ₹9 lakh | ₹5,550 | ₹18,450 | ₹6,150 |
| ₹15 lakh | ₹9,250 | ₹30,750 | ₹10,250 |
| ₹30 lakh | Above MIS limit | ₹61,500 | ₹20,500 |
A single MIS account of ₹9 lakh pays ₹5,550 a month.
Using both together
A retiree who fills SCSS to ₹30 lakh and a joint MIS to ₹15 lakh gets about ₹29,750 a month in total. The capital comes back after 5 years.
Example: ₹40 lakh of retirement savings
Say a retiree has ₹40 lakh. They put ₹30 lakh in SCSS, ₹9 lakh in a single MIS account and keep ₹1 lakh in savings for emergencies. That gives about ₹26,050 a month: ₹20,500 from SCSS and ₹5,550 from MIS.
SCSS interest arrives once a quarter, not monthly. Keep about three months of expenses in your savings account so the gaps do not pinch.
How much for ₹50,000 a month?
At 8.2%, ₹50,000 a month needs about ₹73.2 lakh invested. That is more than the SCSS limit allows. So most retirees who want this income need other sources too, such as a pension, rent or an SWP.
SCSS or MIS first?
If you are eligible for SCSS, it usually makes sense to fill it first because it pays the higher rate. MIS then adds monthly income on top. If you are not yet eligible for SCSS, MIS is the simpler option for regular income.
What to watch
- Income stays flat. At 6% inflation, ₹20,500 a month buys only what about ₹15,319 buys today after 5 years.
- SCSS interest is taxable. Section 80TTB may help seniors in the old regime.
- Reinvestment risk. When the 5 years end, the rate on offer may be lower.
- Lock-in. Breaking either scheme early can reduce what you get back.
Where they fit
SCSS and MIS are good for the steady, safe part of retirement income. They do not grow with inflation. Many retirees keep a growth portion in mutual funds and draw from it with an SWP. See how much corpus you need for ₹50,000 a month.
Check your payout
Work out your income in the SCSS calculator and the Post Office MIS calculator. To plan withdrawals from a fund, use the SWP calculator.
Frequently asked questions
- How much monthly income will I get from ₹30 lakh in SCSS?
- About ₹20,500 a month, paid as ₹61,500 every quarter at 8.2%.
- What is the maximum investment in Post Office MIS?
- ₹9 lakh in a single account and ₹15 lakh in a joint account. At 7.4%, ₹10,000 pays about ₹62 a month.
- Which is better for retirees, SCSS or MIS?
- SCSS pays a higher rate (8.2% vs 7.4%) but quarterly and only for those generally aged 60 or above. MIS pays monthly. Many retirees use both.