Post Office Monthly Income Scheme Calculator
Calculate returns on Post Office Monthly Income Scheme (POMIS) investment in India. POMIS provides guaranteed monthly income and is a popular small savings scheme backed by the Government of India.
Interest Rate
Monthly Income
Monthly Payout:
?0
Annual Income:
?0
Income Rate:
0.00%
Maturity Details
Principal Amount:
?0
Total Interest:
?0
Maturity Value:
?0
Investment Analysis
Effective Yield:
0.00%
Total Payouts:
?0
Net Returns:
?0
Understanding Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS), also known as Post Office MIS, is a popular small savings scheme in India. It provides guaranteed monthly income and is backed by the Government of India, making it a safe investment option for conservative investors seeking regular income.
POMIS Key Features
Investment Details
- Minimum investment: ?1,000
- Maximum investment: ?9 lakhs (single account)
- Investment in multiples of ?1,000
- Joint accounts allowed
- Available at all post offices
Income & Tenure
- Monthly income payouts
- 5-year term (extendable)
- Guaranteed returns
- Government backed
- FD-like safety
Current Interest Rates (2024)
| Investment Amount | Interest Rate | Monthly Income | Annual Income |
|---|---|---|---|
| ?1,000 - ?4,999 | 7.4% | ?6.17 | ?74 |
| ?5,000 - ?9,999 | 7.4% | ?30.83 | ?370 |
| ?10,000 - ?99,999 | 7.4% | ?61.67 | ?740 |
| ?1 lakh - ?4.99 lakhs | 7.4% | ?617 | ?7,400 |
| ?5 lakhs - ?9 lakhs | 7.4% | ?3,083 | ?37,000 |
How POMIS Works
Investment Process:
- Open account at post office
- Deposit lump sum amount
- Receive passbook
- Monthly interest credited
- Principal returned at maturity
Income Calculation:
- Annual interest = Principal × Rate ÷ 100
- Monthly income = Annual interest ÷ 12
- Paid on 10th of each month
- Interest calculated quarterly
- Compounded annually
POMIS vs Other Investment Options
Advantages:
- Government guarantee
- Regular monthly income
- Easy accessibility
- No TDS on interest
- Flexible tenure extension
Limitations:
- Lower interest rates
- 5-year lock-in period
- Maximum investment limit
- No premature withdrawal
- Quarterly interest calculation
Taxation of POMIS
POMIS Tax Treatment
Interest Income:
- Taxed as per individual's tax slab
- No TDS deduction
- Tax liability on annual interest
- Quarterly interest taxable
- Form 15G/15H for senior citizens
Maturity Proceeds:
- Principal amount tax-free
- Interest already taxed annually
- No additional tax at maturity
- Indexation benefits not available
Tax Planning:
- Consider in overall tax planning
- Balance with other investments
- Utilize deductions under 80C
- Plan for quarterly tax payments
Documentation:
- Keep interest certificates
- Maintain investment proofs
- Track quarterly interest
- Report in income tax returns
Who Should Invest in POMIS?
Ideal Investors:
- Conservative investors
- Retirees seeking regular income
- Those wanting guaranteed returns
- Small investors (?1,000 minimum)
- Risk-averse individuals
Not Suitable For:
- Growth-oriented investors
- Those seeking high returns
- Investors needing liquidity
- Those with large investable surplus
- Short-term investment needs
POMIS Account Operations
Opening Account:
- Visit nearest post office
- Submit KYC documents
- Fill MIS-1 application form
- Deposit minimum amount
- Receive passbook
Ongoing Management:
- Monthly interest credited
- Passbook updates quarterly
- Interest paid on 10th of month
- Account extension possible
- Nomination facility available
Key Takeaways for POMIS Investment
- POMIS provides guaranteed monthly income with government backing
- Suitable for conservative investors seeking regular income
- 5-year lock-in period with option for extension
- Interest rates vary based on investment amount
- Monthly interest is taxable as per individual's tax slab
- Minimum investment of ?1,000, maximum ?9 lakhs per account
- Ideal for retirees and those seeking predictable income
- Consider as part of diversified investment portfolio