Free Post Office Monthly Income Scheme Calculator

POMIS Calculator – Your Guide to the Post Office Monthly Income Scheme

The Post Office Monthly Income Scheme (POMIS) is a government-managed, fixed-income investment that pays a steady monthly return to depositors. It belongs to the small savings family and is especially attractive for risk‑averse individuals who want a predictable cash flow without market exposure. With a dedicated POMIS calculator (often referred to as a post office MIS calculator or monthly income scheme calculator), you can instantly compute your expected monthly interest by entering just two figures – the amount you wish to deposit and the current annual interest rate. This tool acts as a reliable post office investment calculator for planning your regular income.

Monthly Income Formula Explained

The monthly payout from a POMIS account follows a simple mathematical relationship. If you know the principal invested (A) and the annual rate of interest (R, expressed as a percentage), the monthly income is given by:

$$\text{Monthly Income} = \frac{A \times \frac{R}{100}}{12}$$

For example, suppose you invest the maximum individual limit of ₹4,50,000 and the prevailing rate is 6.6% per annum. Then:

$$\text{Monthly Income} = \frac{4,50,000 \times 0.066}{12} = \frac{29,700}{12} = 2,475$$

Thus, you would receive ₹2,475 each month for the five‑year tenure of the scheme.

Using the Post Office Monthly Income Scheme Calculator

Operating the calculator takes only a few steps:

1. Choose account type – individual or joint (joint accounts can hold up to three persons).
2. Enter your investment amount – the minimum is ₹1,000; the maximum for an individual is ₹4,50,000, and for a joint account ₹9,00,000.
3. Input the annual interest rate – as notified by the government (currently 6.6% p.a., effective from 01.04.2020).
4. The POMIS monthly interest calculator instantly displays your monthly income and also shows the penalty charges applicable if you decide to close the account prematurely.

Current Interest Rate and Investment Limits

The post office MIS interest rate has been fixed at 6.6% per annum since April 2020. Interest is credited to your account every month and continues for the full five‑year maturity period.
Important investment limits:

• Individual account: minimum ₹1,000, maximum ₹4,50,000.
• Joint account (up to three holders): maximum ₹9,00,000.

If you do not withdraw the monthly interest, it does not earn any additional interest. Therefore, you are advised to park the monthly payouts in a Recurring Deposit (RD) account to benefit from compounding.

Key Benefits of Choosing POMIS

• Low risk: Being a sovereign‑backed scheme, the principal is safe and the return is guaranteed – unlike mutual funds or equities where returns fluctuate with market conditions.
• Attractive yield: At 6.6% p.a., the interest rate is typically higher than the 5–6% offered by most bank fixed deposits.
• Portability: You can transfer your account from one post office branch to another without any hassle.

Opening a POMIS Account

You can open an account as an individual, jointly (up to three adults), or as a guardian for a minor. Minors above 10 years of age can also open an account in their own name. The process is simple:

1. Visit your nearest post office.
2. Submit a filled application form along with proof of identity and address.
3. Provide a cheque or cash for the initial deposit (minimum ₹1,000).

Use the India post office monthly income calculator beforehand to decide how much to invest and what monthly income you can expect.

Premature Closure and Penalties

The scheme has a lock‑in period of 5 years. However, you may close the account after one year from the date of deposit, subject to the following penalty:

• If closed between 1 and 3 years: 2% of the principal amount is deducted.
• If closed between 3 and 5 years: 1% of the principal amount is deducted.

To close, visit the post office with an application and your passbook.

Taxation on POMIS Interest

The interest earned from the Post Office Monthly Income Scheme is taxable under the head “Income from Other Sources”. Although no TDS is deducted at source, you must declare this income in your tax return and pay tax according to your income‑tax slab.