SCSS vs MIS interest rates: How much will a ₹15 lakh investment earn in 5 years?

Senior citizens looking for regular income have several investment options. Two popular government-backed small savings schemes are the Senior Citizens Savings Scheme (SCSS) and the Post Office Monthly Income Scheme (MIS). Both schemes have a five-year maturity period but differ in interest rates, payout frequency, and investment limits.

SCSS offers an interest rate of 8.2% per annum, compared with 7.4% offered by the Post Office MIS. However, the two schemes differ in how frequently they pay interest. SCSS investors receive interest every quarter, while MIS investors get a monthly payout.

The investment limits also differ. An individual can invest up to Rs 30 lakh in SCSS, while the MIS limit is Rs 9 lakh for an individual account and Rs 15 lakh for a joint account. Interest rates for both schemes remain unchanged for the October-December 2026 quarter.

A Rs 15 lakh investment in SCSS at an interest rate of 8.2% per annum will generate approximately Rs 30,750 every quarter.

Over the five-year investment period, the total interest earned will be around Rs 6.15 lakh. The investor will receive this interest in quarterly instalments, while the principal investment amount will be returned at maturity.

Individuals above 60 years of age can open an SCSS account. Retired employees below 60 years of age can also invest, subject to certain exceptions. The scheme allows an individual to invest up to Rs 30 lakh, making it an option for senior citizens seeking regular interest income.

A joint MIS account with an investment of Rs 15 lakh at 7.4% interest will generate approximately Rs 9,250 every month. Over five years, the total interest earned will be around Rs 5.55 lakh.

If you invest Rs 15 lakh in SCSS, you will earn approximately Rs 6.15 lakh in interest over five years. The same investment in a joint MIS account will generate around Rs 5.55 lakh.

These calculations assume that the investment remains in the scheme for the full five-year period and that the interest earned is not reinvested. The MIS calculation also assumes a joint account, which allows the maximum investment of Rs 15 lakh.

The choice between SCSS and MIS depends on how frequently you need income from your investment. SCSS may be suitable for those who want a higher overall interest income and are comfortable receiving payouts every quarter. MIS may suit investors who prefer a fixed monthly income to manage their regular expenses.

Therefore, while SCSS offers higher interest earnings on Rs 15 lakh over five years, MIS provides the benefit of monthly cash flow.