Post Office MIS Calculator

Post Office MIS (POMIS) is a government-backed savings scheme that pays a fixed monthly interest on your deposit for 5 years. The principal is returned at maturity. This calculator computes your monthly income by applying the current 7.4% annual rate to your deposit amount. It also shows total interest earned over the 5-year period and the effective yield.

The current Post Office MIS interest rate is 7.4% per annum, paid monthly. This rate is reviewed quarterly by the government. The rate at the time of account opening is locked in for the entire 5-year tenure. Monthly payout = (Investment x 7.4%) / 12. For Rs 9 lakh deposit, the monthly income is Rs 5,550.

The maximum investment in POMIS is Rs 9 lakh for a single account and Rs 15 lakh for a joint account. The joint account limit of Rs 15 lakh is shared equally, meaning each holder share is Rs 7.5 lakh. You can hold multiple MIS accounts at different post offices, but the total across all accounts must not exceed the limit.

Yes, POMIS monthly interest is taxable under "Income from Other Sources" at your applicable slab rate. TDS is deducted at 10% if annual interest exceeds Rs 40,000 (Rs 50,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit to avoid TDS. The interest income must be reported in your ITR even if no TDS is deducted.

Premature closure is allowed after 1 year with a deduction of 2% of the principal. After 3 years, the deduction reduces to 1%. Before completing 1 year, premature closure is not permitted. There is no partial withdrawal option. If you need the money urgently, closing after 3 years (1% penalty) is more economical than closing between 1-3 years (2% penalty).

POMIS is ideal for retirees and conservative investors who need regular monthly income from their savings. It provides predictable cash flow for meeting monthly expenses. Senior citizens can invest up to Rs 9 lakh to receive Rs 5,550 per month. It is also suitable for parking surplus funds that you want to generate income from without any market risk.

POMIS at 7.4% generally offers higher rates than most bank FD non-cumulative options (6-7%). The key advantage is government backing with zero credit risk. Bank FDs with monthly interest typically offer 0.25% less than the cumulative rate. POMIS pays simple interest monthly while FD non-cumulative payouts may vary. Use our FD calculator to compare both options.

No, NRIs are not eligible to open Post Office MIS accounts. If a resident account holder becomes an NRI during the tenure, the account continues until maturity but cannot be renewed. The maturity proceeds are credited to the NRO account. NRIs seeking regular income from Indian investments can consider NRO FDs with monthly interest payout option.

At maturity after 5 years, you receive your original principal back in full. You can reinvest the same amount in a new POMIS account at the prevailing rate. If you do not close the account within the maturity period, the principal earns interest at the post office savings account rate (approximately 4%) until withdrawal. It is advisable to reinvest or withdraw promptly after maturity.

Yes, you can hold multiple MIS accounts across different post offices. However, the total investment across all single accounts must not exceed Rs 9 lakh, and the total across all joint accounts must stay within Rs 15 lakh per person. The post office maintains a central database to track investments, so exceeding the limit can lead to rejection or refund of excess amount.

Nomination is available and recommended when opening a POMIS account. The nominee receives the maturity amount or the principal plus accrued interest in case of the account holder death. Nomination can be changed during the account tenure. If no nomination is registered, the legal heirs must produce succession certificate or probate to claim the proceeds, which is a lengthy process.

POMIS interest is automatically credited to your post office savings account on a fixed date each month. You can then withdraw from the savings account as needed. If you do not have a post office savings account, one is mandatorily opened at the time of POMIS account opening. The interest is available from the first month after deposit and continues for 60 months.

To open POMIS, you need: identity proof (Aadhaar, PAN, passport, voter ID), address proof, two passport-size photographs, and the deposit amount (cheque, DD, or cash). A post office savings account is mandatory for receiving monthly interest credits. If opening a joint account, KYC documents of all holders are required.

No, POMIS investment does not qualify for Section 80C deduction. It is purely an income-generating instrument without any tax-saving benefit on the investment amount. For tax-saving with regular income, consider combining PPF (80C benefit) with POMIS for monthly income. Alternatively, Senior Citizens Savings Scheme (SCSS) offers both higher rates and 80C benefit.

POMIS is open to all adults with Rs 9 lakh limit at 7.4%, while SCSS is only for senior citizens (60+) with Rs 30 lakh limit at 8.2%. SCSS offers Section 80C benefit but POMIS does not. SCSS tenure is 5 years with 3-year extension option. SCSS pays quarterly while POMIS pays monthly. For senior citizens, SCSS is generally the better option due to higher rate, higher limit, and 80C benefit.

Yes, a POMIS account can be opened in the name of a minor through a guardian. The minor account is counted within the guardian overall POMIS limit. The interest income is clubbed with the guardian income for tax purposes. After turning 18, the account is converted to the individual name with the standard limit of Rs 9 lakh applying independently.

Rs 5,00,000 invested in POMIS at 7.4% gives a monthly income of Rs 3,083 (Rs 5,00,000 x 7.4% / 12). Over the 5-year tenure, total interest earned is Rs 1,85,000. The principal of Rs 5 lakh is returned at maturity. The effective monthly income after tax depends on your tax bracket. In the 20% bracket, the post-tax monthly income is approximately Rs 2,467.

POMIS interest is automatically credited to the linked post office savings account each month without requiring any manual action. This auto-credit ensures uninterrupted monthly income. The savings account can then be accessed through ATM, cheque, or counter withdrawal. Setting up auto-transfer from savings to a bank account provides seamless monthly income management.

Yes, POMIS accounts can be transferred from one post office to another. Submit a transfer request at the current post office with a reason for transfer. The receiving post office opens a new account linked to the transferred deposit. Monthly interest payments resume from the new office. There is no charge for transferring POMIS accounts between post offices.

POMIS provides a predictable monthly cash flow that is essential for retirees. A couple can invest Rs 15 lakh (joint account) plus Rs 9 lakh each individually, totaling Rs 33 lakh in POMIS, generating approximately Rs 20,350 per month. Combined with SCSS (Rs 30 lakh each at 8.2%) and PPF maturity corpus, POMIS forms a reliable income base in retirement. Layer with other investments for inflation protection.

Early closure penalties: Before 1 year = not allowed. Between 1 and 3 years = 2% of principal is deducted. After 3 years = 1% of principal is deducted. For a Rs 9 lakh deposit, closing after 2 years means Rs 18,000 penalty (2%), and after 3 years means Rs 9,000 penalty (1%). Whenever possible, hold until 5-year maturity to avoid any deductions.

POMIS offers guaranteed fixed income of 7.4% with zero risk while stock dividends are variable and depend on company performance. However, high-quality dividend stocks can offer 3-4% yield with potential for capital appreciation. POMIS is better for capital protection and income certainty. Dividend stocks are better for long-term wealth growth with income. Use our dividend calculator to compare yields.

If you do not withdraw the monthly interest credited to your savings account, it simply accumulates in the savings account earning the regular savings rate (approximately 4%). The POMIS interest continues to be deposited each month regardless. To maximize returns on uncollected interest, consider auto-transferring it to a short-term RD or sweep-in FD for higher interest on the idle funds.

Yes, joint POMIS accounts can be opened with "Either or Survivor" or "Joint" operation mode. With "Either or Survivor" any one holder can operate the account and claim interest and maturity independently. With "Joint" mode, both signatures are required for transactions. For convenience, "Either or Survivor" is recommended so that either person can manage the account.

POMIS offers 7.4% while the post office savings account offers approximately 4%. The POMIS rate is almost double, making it a far better option for generating income on idle funds. The trade-off is the 5-year lock-in and investment limits. For amounts above the POMIS limit, consider fixed deposits or NSC at post offices.

On the maximum single account investment of Rs 9,00,000 at 7.4% for 5 years: Monthly income = Rs 5,550, Annual income = Rs 66,600, Total interest over 5 years = Rs 3,33,000. Principal returned at maturity = Rs 9,00,000. Effective total return = Rs 12,33,000. The total interest of Rs 3.33 lakh is taxable. In the 20% bracket, post-tax total interest is approximately Rs 2,66,400.

In a rising rate environment, locking money in POMIS at the current rate may mean missing out on higher rates later. However, POMIS rates are government-set and reviewed quarterly, so they tend to follow the trend. If rates are rising, consider shorter-term investments like FDs and switch to POMIS when rates stabilize or peak. If rates are falling, POMIS locks in the higher current rate for 5 years.

No, NSC does not provide monthly income. NSC compounds interest annually and pays everything at maturity after 5 years. POMIS is specifically designed for monthly income generation. If you want both tax benefit (80C) and monthly income, invest in NSC for the tax benefit and a separate POMIS for the monthly income. The two complement each other well.

POMIS carries sovereign guarantee from the Government of India, making it safer than bank FDs. Bank FDs are insured by DICGC only up to Rs 5 lakh per depositor per bank. Amounts above Rs 5 lakh in a bank carry credit risk. POMIS has no such limit on safety. For deposits above Rs 5 lakh where safety is the primary concern, post office schemes including POMIS offer superior protection.

A well-rounded post office portfolio could include: POMIS for monthly income (Rs 9 lakh, Rs 5,550/month), PPF for tax-free long-term growth (Rs 1.5 lakh/year, 7.1%), NSC for 80C benefit (Rs 1.5 lakh, 7.7%), SCSS for senior citizens (Rs 30 lakh, 8.2%), and KVP for doubling money (7.5%). Together, these cover income needs, tax savings, and capital growth with zero risk.

POMIS rate history: 2015-16: 8.4%, 2016-17: 7.8%, 2017-18: 7.7%, 2018-19: 7.7%, 2019-20: 7.6%, 2020-21: 6.6%, 2021-22: 6.6%, 2022-23: 7.1%, 2023-24: 7.4%, 2024-25: 7.4%, 2025-26: 7.4%. The rate hit a low of 6.6% during the pandemic and has since recovered to 7.4%. Rates are government-determined and reviewed quarterly.

Yes, you can use POMIS monthly interest to partially or fully offset loan EMIs. For example, Rs 9 lakh in POMIS generates Rs 5,550/month which can cover part of a home loan or personal loan EMI. This strategy uses safe, guaranteed income to service debt while the principal remains intact. However, ensure the loan interest rate is not significantly higher than POMIS rate, as the net cost of borrowing must justify this approach.

If the sole or primary holder dies, the nominee or legal heir can either close the account and receive the principal plus accrued interest, or continue the account until maturity. For joint accounts, the surviving holder can continue the account with monthly interest payments. A death certificate and claim form must be submitted to the post office. The proceeds are tax-free inheritance for the nominee.

Post Office MIS can be tracked online through the India Post DOP portal and mobile app if you have internet banking enabled on your post office savings account. Some post offices also support online account opening for POMIS. Monthly interest credits can be tracked through passbook updates or online statements. However, not all post offices have full digital capability, so in-person visits may still be needed for certain transactions.

To generate Rs 1 lakh monthly income from POMIS at 7.4%: Required investment = Rs 1,00,000 x 12 / 0.074 = Rs 1,62,16,216 (approximately Rs 1.62 crore). However, the maximum single account limit is Rs 9 lakh. Even using multiple accounts across a couple (single + joint), the maximum realistic monthly income from POMIS alone is about Rs 20,000-25,000. For Rs 1 lakh monthly income, POMIS must be combined with SCSS, FDs, and other instruments.