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.
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.