Post Office Monthly Income Scheme Calculator, Features, Benefits, Eligibility & Interest Rate
Post Office Monthly Income Scheme Calculator
Post Office Monthly Income Scheme Calculator:- The money in the savings plan can either be withdrawn or reinvested when it matures. The goal of the Monthly Income Scheme for Post Office Workers (MIS) is to provide investors with a reliable and additional source of income from their investments. To calculate the monthly interest on an investment in POMIS, use the Post Office Monthly Income Scheme Calculator.
Contents
Features of Post Office Monthly Income Scheme
Frequent payments: The investors receive interest payments on a regular basis each month.
Minimal risk: Investing in the Post Office Monthly Income Scheme (MIS) is a secure choice. Monthly income payments are the guaranteed form of return. It is a risk-free investment option as well.
Lock-in: The plan has a five-year lock-in period. Additionally, if they so choose, investors may choose to reinvest in the scheme.
Single and joint accounts: Indian citizens who are older than ten years old may hold the account either individually or jointly. Three adults maximum can hold a joint account. Additionally, every joint holder will own an equal portion.
Minimum and maximum investment: To open a POMIS account, you must deposit a minimum of INR 1,500. This allows for multiples of INR 1,500. An individual’s maximum investment is INR 9 lakhs.
Minor: Anyone above ten years of age is eligible to open a POMIS account. A minor can receive only up to Rs 3 lakh. After the user reaches eighteen, the account status can be modified to adult.
Early withdrawal is permitted, albeit at a penalty, for a period of one year following the account’s setup. The redemption date establishes the penalty amount. Withdrawals made after three years but before five years are subject to a 1% penalty. Withdrawals made before three years but after one are subject to a 2% penalty.
Maturity: At that point, the investor has the choice to either withdraw their funds or use them again in the scheme. assuming that there is no withdrawal or deposit of funds.
Transferable: You are able to relocate a POMIS account to a new post office.
Tax: There is no TDS deduction on the interest amount. However, the investment is not eligible for Section 80C tax savings.
A guaranteed monthly income program is the Post Office Monthly Income Scheme (POMIS). It ensures that the investment will yield interest and provide income. The Central Government and the Finance Ministry set the interest rate for a Post Office MIS. The current interest rate is made public every quarter. The returns that Government Bonds with the same duration produce determine the interest rate. Presently, the interest rate on Post Office MIS is 7.40% per annum.
Interest is paid on a monthly basis. Investors may receive an automatic transfer of their investments. Stated differently, interest can be automatically deposited into the savings account using an Electronic Clearing System (ECS) or Post Dated Cheque (PDC).
Investors have the option to reinvest the entire corpus back into the same scheme once it matures. The account will continue to accrue interest at the Post Office Savings Account interest rate for the next two years if there is no withdrawal or reinvestment.
Additionally, no TDS is deducted for accrued interest. Nonetheless, the investor must pay taxes on the interest they earn.
How to use Scripbox’s Post Office Monthly Income Scheme Calculator?
It is quite simple to calculate the interest received from a post office monthly income plan. The formula makes it simple to calculate the interest income. However, the Post Office Monthly Income Scheme online calculator also uses the same formula to determine its results.
Here’s an example to help us better understand this. In the post office MIS scheme, Mr. Kumar invested INR 4 lakhs at a rate of 7.40% annually. At the time of his investment, POMIS had an interest rate of 7.40%. By applying the formula above, the interest rate is
POMIS Monthly Interest is equal to INR 2,946 (400,000 * 7.40%/12).
Therefore, Mr. Kumar would receive INR 2,946 in interest each month. Over a 60-month period, he will earn INR 148,000 in interest total.
One can quickly calculate the Monthly Interest by using the Scripbox Post Office Monthly Income Scheme calculator. The user needs to input the following data into the Post Office Monthly Income Scheme MIS interest rate calculator:
The investment amount in the Post Office Monthly Income Scheme refers to the total amount invested.
Rate of Interest: At the time the account is opened, the interest rate is applicable.
Lock-in Time: It is how long the investment lasts.
The following are the benefits of using the post office monthly income scheme calculator:
The monthly income scheme calculator for the post office is entirely available online. It is available for use at any time by investors.
You can use the calculator for free.
The Post Office MIS calculator removes the possibility of human error. In a matter of seconds, the online calculator completes the computation and displays the results.
How can a Post Office Monthly Income Scheme Calculator help you?
The advantages of the Post Office Monthly Income Scheme Calculator are as follows:
Calculate the monthly interest: If one invests in POMIS, one can earn a monthly interest by using the Post Office Monthly Income Scheme (MIS) calculator.
Budgeting: You can use the calculator to plan your investments. When comparing different monthly income schemes, they can use the results of the post office MIS interest rate calculator. One can also successfully plan their budget (income and expenses) by estimating their interest amount.
Usage is quite easy with this calculator. In a matter of seconds, the calculator also provides the monthly interest that an investor could earn.
Easily reachable and precise: There’s an online calculator that’s quick and accurate. Anywhere in the world can access it.
Reduces waiting time: By providing results in a matter of seconds, the Post Office Monthly Income Scheme Calculator saves the investor’s time.
Eligibility for an individual to open a Post Office MIS Account
The Post Office Monthly Income Scheme was specifically created for investors with conservative risk tolerance. Put another way, POMIS is a great substitute for investors who don’t feel comfortable placing their entire corpus in market-linked securities. POMIS is backed by the Government of India and offers guaranteed returns. It’s among the greatest monthly income schemes out there.
You must fulfill the following requirements in order to be eligible to open a Post Office MIS account:
The account holder must live in India. NRIs are not eligible to open accounts and use this scheme.
someone who is 10 years of age or older. Only if the child is ten years of age or older can parents open an account in their child’s name.
A minor’s maximum investment in POMIS is INR 3,00,000.
Additionally, for a single-holder account, the minimum opening deposit is INR 15,000 and the maximum is INR 9 lakhs. A joint account’s maximum investment limit is INR 15 lakhs.
How to open a POMIS Account?
Creating a POMIS account is not as hard as one might think. It’s quite simple and hassle-free. Only at a post office is it possible to open a POMIS account.
One must have a Post Office Savings Account before opening a POMIS account. The steps listed below can be used to open a POMIS account if the applicant already has a Post Office Savings Account.
When one visits the post office, one must gather, complete, and submit the application form along with all required paperwork.
To create a POMIS account, you will need the following items:
Two passport-sized photos
Address Proof Identity Proof (voter ID, Aadhar card, PAN card, Ration card, driver’s license or passport, etc.) Verification requires the original proof copies.
Step by Step processes of opening a POMIS account
Step1. Check out the post office that’s closest to you.
Step2.Obtain the application, then fill it out completely.
Step3.Submit the required paperwork, and finish the identity and address proof checks. The documents require the investor’s self-attestation.
Step4.Input the nominee’s details, if applicable. That being said, the nominee’s details might be added afterward.
Step5.Open the account by depositing the required amount of cash or cheque (INR 1,500 minimum). Please be aware that after opening your account, you will receive interest on the investment amount for one month.
Please note that you will receive interest on the investment amount one month from the date of account opening.
Obtaining the signatures of a witness or nominee(s) is also necessary.
Benefits of opening a POMIS Account
POMIS investment returns are independent of the market. You can be sure of returns because the government backs it. A popular choice among conservative investors is POMIS. The two advantages of creating a POMIS account are as follows:
Steady Returns: Fixed interest income is provided by Post Office Monthly Income Schemes. An investor receives a monthly income that is predictable and consistent. As of October 2023, the interest rate is 7.40%. As a result, an investment made at this rate would generate a fixed interest income each month.
Reinvestment: Interest income from POMIS accounts is a reliable way to get extra money each month. Direct interest collection from the post office or direct deposit into a savings account are two options. The monthly income is available for reinvestment by the investor.
Reinvesting as a SIP in equity mutual funds or other asset-class mutual funds would help grow the money. An investor should only reinvest money in mutual funds if they are prepared to take on the associated risk. An additional option for investing monthly interest is to use a post office recurring deposit.
What are the other Types of Accounts that can be opened at India Post?
Various account types can be opened at the post office or with India Post, such as:
Post Office Savings Account
Senior Citizens Savings Scheme
Kisan Vikas Patra
Public Provident Fund Account
Sukanya Samriddhi Yojana
5-Year Post Office Recurring Deposit Account
Post Office Time Deposit Account
National Savings Certificate
The post office schemes (also known as India Post schemes) mentioned above are all investment plans with different lock-ins and maturity dates. The maturity periods span from five to eighteen years. Still, they’re all guaranteed returns.
Each of these investment plans has a distinct tax treatment as well. For some of the post office schemes mentioned above, Scripbox offers online calculators. Specifically, the National Savings Certificate Calculator, Sukanya Samriddhi Yojana Calculator, PPF Calculator, and Recurring Deposit Calculator.
FAQ’s
Q. Can I get a loan from Post Office MIS?
Ans- It is not possible for you to borrow against your Post Office MIS investments.
Q. Is there any Tax deduction at the source?
Ans- For interest earned in POMIS, there is no TDS. Section 80C of the Income Tax Act, however, does not allow tax savings on investments made in the Post Office Monthly Income Scheme.