How this calculator works
MIS pays interest monthly without reinvesting it. The model applies the supplied annual rate to a deposit for a five-year term. It checks the INR 900,000 single and INR 1,500,000 joint account ceilings, but does not aggregate other accounts or verify ownership limits. A reverse deposit is a mathematical target; actual deposits must follow the permitted denomination increments. Confirm the notified rate for the opening date. Taxes and premature-closure deductions are excluded.
Formula
Monthly income = deposit x annual rate/12. Required deposit = monthly income x 12/annual rate. Five-year interest = monthly income x 60.
Worked example
An INR 300,000 deposit at 7.4% pays INR 1,850 monthly and INR 111,000 over five years. An INR 900,000 deposit at 6% pays INR 4,500 monthly.
Advertisement
Frequently asked questions
Does unpaid interest compound?
This calculation assumes interest is paid out monthly, so it earns no interest within the MIS account.
Is 7.4% guaranteed for a new account?
It is an editable illustration. Check the official rate applicable when the account is opened.
Is the returned deposit exact for opening an account?
A reverse target can be fractional. Round to a permitted deposit increment and check the monthly income again.