Post Office MIS Calculator

Calculate Post Office MIS returns quickly! Estimate your monthly income and total investment growth with our free, accurate MIS calculator. Plan finances and...

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functions Mathematical Formula

Monthly\ Interest\ (MI) = P \times \frac{R}{100 \times 12}

Total\ Interest\ Earned = MI \times Tenure\ (Years) \times 12

Principal\ at\ Maturity = P

Where:

  • P = Principal Investment
  • R = Annual Interest Rate (in percentage)
  • Tenure\ (Years) = Scheme Duration in Years

What is the Post Office MIS?

The Post Office Monthly Income Scheme (POMIS) is a popular savings scheme offered by India Post. It's designed to provide investors with a regular stream of income through monthly interest payments. This scheme is considered a low-risk investment option, making it suitable for retirees, senior citizens, and anyone looking for a steady supplementary income with capital protection.

Key Features and Benefits

  • Guaranteed Income: Offers fixed monthly interest payments, ensuring a predictable cash flow.
  • Low Risk: Backed by the Government of India, making it one of the safest investment options.
  • Fixed Tenure: Comes with a fixed maturity period of 5 years.
  • Easy Access: Can be opened at any Post Office branch across India.
  • Joint Account Option: Allows for joint accounts with up to three adults, expanding investment limits.

Eligibility and How to Open

Any Indian resident individual can open a POMIS account. Minors above 10 years of age can also open an account in their own name. To open an account:

  1. Visit your nearest Post Office branch.
  2. Fill out the POMIS application form.
  3. Submit required KYC documents (ID proof, address proof, passport size photographs).
  4. Make the initial deposit via cash or cheque.
  5. You will receive a passbook for your records.

Taxation and Important Considerations

  • Taxation: Interest earned from POMIS is taxable as per the individual's income tax slab. There is no TDS (Tax Deducted at Source) on POMIS interest.
  • Investment Limits: Maximum investment for a single account is $900,000 (₹9 Lakh) and for a joint account is $1,500,000 (₹15 Lakh).
  • Premature Withdrawal: Allowed after 1 year, but with penalties. No withdrawal is permitted before 1 year.
  • Interest Rate: Rates are subject to change quarterly by the government, though your rate is fixed at the time of opening for the entire tenure.

Frequently Asked Questions

What is the minimum investment for Post Office MIS? + -
The minimum investment required to open a Post Office MIS account is $1,000 (₹1,000), and further investments can be made in multiples of $1,000.
Can I open multiple MIS accounts? + -
Yes, you can open multiple MIS accounts, but the total investment across all your accounts (including joint accounts where you are the primary holder) cannot exceed the maximum limit of $900,000 (₹9 Lakh) for a single holder or $1,500,000 (₹15 Lakh) for a joint account.
What happens after 5 years maturity? + -
Upon maturity after 5 years, the principal amount invested is returned to the account holder. The account can be closed, or the investor can choose to reinvest the amount into a new MIS account or other schemes available at the Post Office.
Is premature withdrawal allowed? + -
Yes, premature withdrawal is allowed after one year from the date of opening the account. However, penalties apply. If withdrawn between 1 and 3 years, 2% of the principal is deducted. If withdrawn after 3 years but before maturity, 1% of the principal is deducted.

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