Post Office Monthly Income Scheme Calculator

Calculate your potential monthly income and total returns from the Post Office Monthly Income Scheme (POMIS) in India. Plan your investments effectively.

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Annual Interest Rate

Scheme Tenure

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functions Mathematical Formula

Formula Behind the Post Office MIS

The Post Office Monthly Income Scheme (POMIS) calculates interest on a simple interest basis, paid out monthly.

Monthly Income Calculation

Monthly\;Income = \frac{Principal \times Annual\;Interest\;Rate}{12 \times 100}

Total Interest Earned

Total\;Interest = Monthly\;Income \times Tenure\;(in\;years) \times 12

Total Return

Total\;Return = Principal + Total\;Interest

What is the Post Office Monthly Income Scheme (POMIS)?

The Post Office Monthly Income Scheme (MIS) is a popular savings scheme offered by India Post, designed for investors looking for a regular monthly income with minimal risk. It's a government-backed scheme, making it a safe investment option. Investors deposit a lump sum amount, and in return, they receive a fixed interest payment credited to their account every month. The principal amount is returned to the investor upon maturity.

Key Features and Benefits of POMIS

Assured Monthly Income: Provides a steady stream of income, ideal for retirees or those dependent on regular payouts.
Government Backed: Offers high security as it's a scheme by the Government of India.
Fixed Interest Rate: Interest rate is fixed at the time of investment for the entire tenure.
Low Risk: Virtually no market risk, making it suitable for conservative investors.
Flexible Investment: Open to individuals and joint holders, with varying investment limits.
Tax Efficiency: While interest income is taxable, TDS (Tax Deducted at Source) is not applicable on MIS interest.

Eligibility and Investment Limits

Eligibility: Any Indian resident adult can open an account. Minors above 10 years can open an account in their own name.
Account Types: Can be opened individually or jointly (up to 3 adults).
Minimum Deposit: The minimum investment required is ₹1,000.
Maximum Deposit:

Single Account: ₹4.5 lakhs (₹450,000)
Joint Account: ₹9 lakhs (₹900,000)

Tenure: The scheme has a fixed tenure of 5 years.

How to Open a POMIS Account

Opening a POMIS account is a straightforward process:

Visit a Post Office: Go to any nearest Post Office branch.
Fill Application Form: Obtain and fill out the MIS application form.
Submit Documents: Provide identity proof (Aadhaar, Passport, etc.), address proof (Aadhaar, utility bills, etc.), and recent passport-sized photographs.
Nomination Facility: You can nominate a beneficiary for your account.
Initial Deposit: Make the initial deposit via cash, cheque, or demand draft.
Passbook: Once processed, you will receive a passbook for your MIS account.
Monthly Payout: Monthly interest can be directly credited to your Post Office Savings Account.

Frequently Asked Questions

What is the current interest rate for POMIS?

The interest rate for the Post Office Monthly Income Scheme is subject to change by the government on a quarterly basis. As of the current quarter (e.g., Q1 FY24-25), the interest rate is 7.4% per annum, compounded monthly but paid out. Always check the India Post website for the latest rates.

Can I withdraw my money before maturity in MIS?

Yes, premature withdrawal is allowed in POMIS after one year. However, penalties apply:

If withdrawn after 1 year but before 3 years: 2% of the principal will be deducted.
If withdrawn after 3 years but before 5 years (maturity): 1% of the principal will be deducted.

No withdrawal is permitted before one year from the date of deposit.

Is POMIS a good investment for senior citizens?

Yes, POMIS is often considered a good investment option for senior citizens due to its low-risk nature and regular monthly income payout. It provides financial stability and a predictable cash flow, which can be beneficial for managing monthly expenses. While the interest income is taxable, it's a secure government-backed scheme.

What happens at the maturity of a POMIS account?

Upon the completion of the 5-year tenure, the principal amount invested is returned to the account holder. The account can be closed, or the maturity proceeds can be reinvested in a new POMIS account, subject to prevailing rules and interest rates. It's recommended to plan for the reinvestment or withdrawal well in advance of maturity.