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Post Office MIS Calculator

The Post Office Monthly Income Scheme (POMIS or Post Office MIS) is a government-backed savings scheme launched by the Post Office or India Post. Designed to provide supplementary or regular incomes from an investor's investments, the Post Office MIS caters to those who intend to park their funds in a government-run scheme, which guarantees fixed returns. If you desire to invest in Post Office monthly income schemes, you can visit any post office to do the needful. Post Office MIS assures fixed returns to investors at the rate at which the money was initially invested. The Post Office Monthly Income Scheme Calculator is used to calculate the monthly interest on investment in POMIS.




 

Post Office MIS Interest Rate 2023

India's Post offices have a wide variety of schemes that provide fixed returns on investments. All the schemes are safe as they are government-backed. Post Office Monthly Income Scheme (Post Office MIS) like any other scheme such as Post Office Savings Account, Post Office Recurring Deposit, and Post Office Time Deposit, is one of the highest-earning schemes having an interest rate of 7.1 % p.a for 1 January 2023 – 31 March 2023 with a lock-up period of 5 years. The scheme's interest gets disbursed monthly, and it is identified along with being authorised by The Ministry of Finance and the Central Government. Interest rates for this scheme are announced every quarter and it depends on the returns generated by the Government Bonds of the same tenure. 

Investors can opt for auto-transfer of withdrawals wherein the interest can be auto-transferred to the savings account via a Post Dated Cheque (PDC) or Electronic Clearing System (ECS). If no withdrawal or reinvestment has been done, the account will continue to earn interest at the Post Office Savings Account interest rate. Do note that there's no TDS deducted for the interest earned, but the earned interest is taxable in the hands of the investor.

How to use Fintra's Post Office Monthly Income Scheme Calculator?

Computing the interest earned from a Post Office Monthly Income Scheme is extremely easy. Using the formula, anyone can effortlessly calculate the interest income. However, to make it even more easy and swift, the online Post Office Monthly Income Scheme Calculator also uses the same formula for determining the results: POMIS Monthly Interest = Amount Invested * Annual Interest Rate/12

Using Fintra's Post Office Monthly Income Scheme Calculator, one can calculate the Monthly Interest immediately. The Post Office MIS interest rate calculator requires the input of the following details to accurately calculate the results:

  1. Amount Invested– This refers to the amount deposited in the account.
  2. Annual Interest Rate – It's the MIS rate of interest. 
  3. Time Period

When all data has been filled in into the MIS calculator, click on “Submit” and instantly the results are displayed beside the calculator.

Following are some of the benefits of using Fintra's Post Office Monthly Income Scheme Calculator:

  • The calculator is online, and investors can anytime use it at their convenience.
  • It is free to use.
  • Post Office MIS Calculator eliminates the chances of making human errors. Fintra's online calculator does the entire calculation and then delivers the results in seconds.

How can the Post Office Monthly Income Scheme (MIS) Calculator help you?

Following are some of the benefits of the Post Office Monthly Income Scheme Calculator:

Determining the monthly interest: The MIS calculator assists in determining the monthly interest an investor can earn if invested in POMIS.

Financial planning: Using the calculator, an investor can plan their investments. Through the results availed from the MIS interest rate calculator, they can use it to compare with other monthly income schemes. Also, by estimating their interest amount, they can plan out their budgets effectively.

Easy to use: The calculator is extremely easy and simple to use. One has to simply enter their investment amount along with the current interest rate, and then the calculator displays the monthly interest the investor can earn from the investment within seconds.

Accessible and accurate: Being fast, reliable, and available online, the calculator can be accessed from anywhere, anytime.

Saves time: The MIS Calculator provides results within seconds and hence saves the time of the investor.

How to open a Post Office MIS Account?

It's very easy and hassle-free to open a Post Office MIS account. You can open a POMIS account only at a post office.

However, one does need to have a Post Office Savings Account before opening a POMIS account. If you already have a Post Office Savings Account, you can then follow the below procedures to open a POMIS account.

When visiting the post office, collect and fill out the application form and submit all the required documents. Following is an outline of the things one will require to open a POMIS account:

  • Two Passport size photographs
  • Address Proof
  • Identify Proof (Aadhar Card, Voter ID, Pan Card, Ration Card, Driving License or Passport, etc.) Original copies of the proofs are required for verification

Step by Step processes of opening a POMIS account

  1. Visit the nearest post office, obtain the application form and fill in all the details.
  2. Provide the required documents, along with completing the identity and address proof verifications. Do note you've to self-attest the documents.
  3. If there's a nominee then enter their details. The nominee details can also be added at a later point.
  4. Deposit the cash or cheque, a minimum of Rs. 1,500, and open the account. If the cheque has a post-dated cheque, the date of the account opening will be the date stated on the cheque.

Interest distribution on the investment amount will be one month from the account opening date. Additionally, you need to get the signatures of a witness or a nominee(s) on the form.

Features of Post Office Monthly Income Scheme (MIS)

The key features of the Post Office MIS scheme are:

  1. Regular payments: Investors get regular monthly interest payments 
  2. Low risk: The Post Office MIS is a safe investment option as the returns are guaranteed in the form of monthly income payments. It also is a 0% risk investment option
  3. Maturity Period/Lock-in: The scheme's maturity period is 5 years, and the investor can reinvest in the scheme if they desire to 
  4. Single account and joint account: MIS accounts can be owned by an individual or jointly, with a maximum of three adult holders. Moreover, each joint account holder will have an equal share
  5. Minimum and maximum investment: The minimum limit for depositing in Post Office MIS is Rs. 1500, and then it goes in multiples of Rs. 1,000 or Rs. 1,500. The maximum limit for depositing in Post Office MIS is as follows:

a. For a Single Account, the maximum limit is Rs. 4.5 Lakh

b. For Joint Accounts, the maximum limit is Rs. 9 Lakh

c. For Minor Account, the maximum limit is Rs. 3 Lakh

  1. Nomination Facility: This scheme has a nominee facility, and you can update it later after opening the account by a beneficiary. The beneficiary can only claim the benefits after the account holder has demised
  2. Transfer Facility:POMIS accounts freely transferred from one Post Office to another
  3. Premature withdrawal:After one year of account opening premature withdrawal is allowed with a penalty. The penalty gets charged based on the time of redemption. Approximately a 1% penalty is charged for withdrawal that is been made after three years but before five years. A 2% penalty is charged for withdrawals made before three years but after one year
  4. Maturity: Upon maturity, investors can choose to either withdraw or reinvest the funds into the scheme. If the amount is not been withdrawn or reinvested, the account can continue to earn interest up to 2 years from maturity at the Post Office Savings Account rate
  5. Auto withdrawal of interest: Investors can choose to withdraw the interest by the automatic transfer facility to the savings account through Post Dated Cheque (PDC) and Electronic Clearing System (ECS)
  6. Taxability:MIS doesn’t fall under Section 80C of the Income Tax, hence, the interest earned is taxable. It has no TDS, too. 

Benefits of opening a Post Office MIS Account 

Post Office MIS investment returns aren't market-linked. Since it is backed by the government, MIS offers guaranteed returns. The scheme is a good option for numerous conservative investors. Following are the two vital benefits of opening a Post Office MIS account: 

Steady Returns: Post Office Monthly Income Schemes provide fixed interest income. Investors can earn a steady and fixed flow of income every month. The current interest rate is 7.1%, therefore, an investment made at this rate will earn a fixed monthly interest income. 

Reinvestment: Post Office MIS interest income is known to be a good source of additional monthly income. You can collect the interest directly from the post office and/or transfer it to your savings account. Investors can also choose to reinvest the monthly income.

Reinvesting as a SIP in either equity mutual funds or other asset class mutual funds will indeed help the money grow. However, this reinvestment into mutual funds is suited only when you understand and are willing to undertake the risk associated. Moreover, a post office recurring deposit is another option which you can use to invest monthly interest.

Upon maturity, you also may choose to reinvest the corpus in the same scheme for another five years to get double the benefits.

 

Now with the innovative ways of online banking, it's easy to open any savings account online within just a few seconds! For example, to open Kotak 811 Savings Account please click here, and to learn more on how can you save more with Kotak Cherry please click here.

 

 

Frequently Asked Questions  

What is the eligibility for an individual to open a Post Office MIS Account?

The following are the eligibility criteria for those who are seeking to avail this scheme-

  • The person has to be a resident of India. NRIs are not eligible to avail this scheme
  • The individual has to be above the age of 10 years. Moreover, parents may open an account in their child’s name only if the child is the age of 10 years and above
  • Maximum investment limit a minor can invest in Post Office MIS is Rs. 3,00,000

How can I withdraw money from my Post Office MIS account after the tenure?

To withdraw the deposited amount from the account, you can either visit the nearest post office or get it credited into your savings account through ECS (Electronic Clearing System). If the amount hasn't been withdrawn or reinvested, the account can continue to earn interest up to 2 years from maturity at the Post Office Savings Account rate.

Is there any Tax deduction at source? 

There is no TDS (Tax Deduction at Source) for interest one earns in Post Office MIS. However, the investments in the Post Office Monthly Income Scheme don't qualify for tax savings under Section 80C of the Income Tax Act.

Can senior citizens also invest in Post Office MIS?

Senior citizens can invest in Post Office MIS, have a POMIS account, and earn a monthly interest higher than the regular Post Office MIS interest rates. 

How can I transfer my Post Office MIS Account?

You can transfer Post Office MIS Account from one post office to another for absolutely free. In order to do this, you've to fill up the transfer application form, Form SB 10 (b), and it can be available at any Post Office. The form can also be downloaded online. Investors have to fill up the form with the basic details such as POMIS account number, branch, bank details like bank account number, ifsc code, etc., and signatures of the account holders. Later on, the passbook along with the form has to be submitted. The Postal Assistant (PA) in the existing branch will provide the acknowledgement slip and forward it to the post office in the new location where you desire to transfer the account. The same slip has also to be presented to the PA of the branch where the account has to be transferred. Then you will get the new passbook with the old balance.

What are the consequences of making an early withdrawal?

Premature withdrawals are allowed only after one year from the account opening. However, there's a penalty for the same, and the penalty depends on the time left until maturity. For example, if the premature withdrawal is made after one year of the account opening but before three years, then, the penalty would be around 2%. If the premature withdrawal is made after three years and before five years (maturity), then around 1% penalty is levied. 

Is there a nomination facility available in Post Office MIS?

The scheme does allow to select and appoint a nominee against the account who will receive the accumulated amount in case of unfortunate demise. 

Does Post Office MIS offer tax rebates?

Post Office MIS does not provide any tax benefits under Section 80C of the Income Tax Act, 1961.

Is money safe in post office?

Your money is safe in the post office investment scheme. In fact, mostly all the Post office schemes do guarantee good returns as the Government of India backs them. Moreover, some post office investment schemes even offer tax benefits up to Rs 1,50,000 upon investment under Section 80C of the Income Tax Act 1961.

Can I get a loan from Post Office MIS? 

The answer is no. One can't take a loan against its Post Office MIS investments.

What are other Types of Accounts that can be opened at India Post?

Some other types of accounts that can be opened with the post office or India Post are as follows:

  1. Post Office Savings Account
  2. Senior Citizens Savings Scheme
  3. Kisan Vikas Patra
  4. Public Provident Fund Account
  5. Sukanya Samriddhi Yojana
  6. 5-Year Post Office Recurring Deposit Account
  7. Post Office Time Deposit Account
  8. National Savings Certificate

All the above Post Office Schemes (India Post schemes) are investment plans that have varying maturity periods and lock-ins. In general, the maturity periods range from 5 years to 18 years. However, all of them do guarantee good returns. Do bear in mind that the tax treatment for each of the above mentioned investment plans is also different. Fintra has online calculators for some of the above post office schemes. To name a few, there's the RD calculator (Recurring Deposit Calculator), PPF calculator (Public Provident Fund), Sukanya Samriddhi Yojana (SSY) Calculator, and National Savings Certificate (NSC) Calculator. Anyone can use them to determine the maturity value of the investments in any of the above schemes.

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