# Post Office Monthly Income Scheme Calculator

Created by Purnima Singh, PhD and Wei Bin Loo
Reviewed by Steven Wooding
Last updated: Feb 02, 2023

Omni's Post Office Monthly Income Scheme calculator (MIS calculator) allows you to calculate your monthly income from an MIS account. Just enter the investment amount, and the prevailing interest rate, and the Post Office MIS calculator will give you the monthly interest payable.

Are you looking for a risk-free investment solution that can generate steady income for you? If you are, then the Post Office Monthly Income Scheme may be the right solution for you.

Continue reading to know what the Post Office Monthly Income Scheme is and what its benefits are. You will also learn how to open or close a post office monthly income scheme account.

We also recommend checking the systematic withdrawal plan calculator to explore other income avenues.

## What is Post Office Monthly Income Scheme?

Post Office Monthly Income Scheme (POMIS) is an investment option offered by the Post Office. It allows you to invest a certain amount and receive a regular monthly interest on it. The interest rate offered is decided by the government.

POMIS is suitable for investors looking for a low-risk option. You can also invest in Atal Pension Yojana scheme to secure a regular flow of income in old age.

## How to calculate monthly income from Post Office MIS?

The formula for calculating monthly income in Post Office monthly income scheme is:

$\quad M.I = \frac{A \times R}{12}$

where:

• $M.I$ - Monthly income;
• $A$ - Amount invested; and
• $R$ - Annual rate of interest.

You can invest up to Rs. 4.5 lakh as an individual account holder or up to Rs. 9.0 lakh as a joint account holder. The current (from 01.04.2020) is 6.6% per annum.

For example, let us suppose that you have invested Rs. 4.5 lakh in a Post Office Monthly Income Scheme account, and the annual rate of interest is 6.6%. You can calculate your monthly income as:

$\rm M.I = \frac{Rs.~ 4,50,000 \times 6.6}{12 \times 100}$

= Rs.~ 2,475

## How to use the Post Office Monthly Income Scheme calculator?

Let us see how you can use the Post Office Monthly Income Scheme calculator to calculate your monthly income with just a few clicks:

1. Choose the nature of the account, i.e., individual or joint.

2. Enter the investment amount, e.g., Rs. 4.5 lakh.

3. Type the annual rate of interest, e.g., 6.6%.

4. The post office MIS calculator will give your monthly income, e.g., Rs. 2,475. It will also display the penalty charges for pre-mature closure of your account.

## Post office MIS interest rates

The current interest rate for the Post Office Monthly Income Scheme is 6.6% per annum. The interest is paid to the account holder every month until the maturity of the scheme, i.e., for 5 years.

It is to be noted that if you do not claim your payable interest every month, it will not earn any additional interest. Therefore, it is advisable to open a recurring deposit account and invest the interest earned from POMIS into it to benefit from the power of compounding.

You can also open a Sukanya Samriddhi Yojana account or invest in ELSS mutual funds to get higher return on your investments.

The interest earned from the post office monthly income scheme is taxable in the hand of the depositor.

## Post Office MIS benefits

Some benefits of the Post Office MIS as compared to other investment options are:

• Low-risk: It is a safe investment option as compared to mutual fund investments or stocks, where the return is related to the market and may vary.

• Higher interest rate: As compared to the fixed deposit interest rates of 5-6% offered by most of the banks, the interest rate is higher (6.6%) in the Post Office Monthly Income Scheme.

• Transferable: You can easily transfer your account from one branch to another.

## How to open a POMIS account?

You can open a POMIS account as an individual, jointly (up to three people), or as a guardian on behalf of a minor. You can also open an account in your name if you are a minor above 10 years.

The minimum amount required for opening an account is Rs. 1,000. You can use our Post Office Monthly Income Scheme calculator to determine the interest you will earn on your deposit.

To open a Post Office MIS account, you need to visit the post office and submit the following documents:

• Filled application form for opening an account;
• Proof of identity and address; and
• A cheque for the initial contribution.

## How to close a POMIS account?

The maturity period for a post office monthly income scheme is 5 years. However, you may choose to close your account prematurely after 1 year from the date of deposit by visiting your post office and submitting an application and your passbook. But remember that doing so may attract penalty charges as follows:

• If you choose to close the account after 1 year and before 3 years, you will have to pay 2% of the principal amount.

• If you choose to close the account after 3 years and before 5 years, you will have to pay 1% of the principal amount.

## POMIS calculator disclaimer

You should consider the POMIS calculator as a model for financial approximation. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are not exhaustive despite our best effort.

For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracy, we are always pleased to receive helpful feedback and advice.

## FAQ

### What is the investment limit for the Post Office Monthly Income Scheme?

To open a Post Office Monthly Income Scheme account, you need to invest a minimum of Rs. 1,000. The maximum you can invest is Rs. 4,50,000 as an individual, and Rs. 9,00,000 as a joint account holder.

### What is the lock-in period for a POMIS account?

5 years. The lock-in period for a POMIS account is 5 years. You can choose to withdraw or reinvest your money after this period.

### What is the post office monthly income scheme interest rate for 2022?

6.6%. The post office monthly income scheme interest rate for 2022 is 6.6%.

### Is post office monthly income scheme taxable?

Yes, interest earned from the post office monthly income scheme is taxable. Although no TDS (tax deducted at source) is deducted for the interest earned from a POMIS, you need to declare this income and pay tax on it.

Purnima Singh, PhD and Wei Bin Loo
Post Office Monthly Income Scheme (POMIS)
Nature of account
Individual
Amount invested
Interest rate
%
Monthly income
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