You can increase your investment returns with the help of the Post Office Monthly Income Scheme. It is a 5-year investment plan with a fixed monthly income and an annual interest rate of 7.8%. The program is accessible in all Indian post offices.

Consider one of the post office programs if you’re seeking a secure investment choice that will yield respectable returns. Investors in the country’s urban areas are not familiar with the post office monthly income program (POMIS). If you are really interested in investing, then surely check.

In order to generate monthly incomes, the population in urban India chooses to invest in fixed deposits and other debt consumer items. However, the Indian Postal Service’s monthly income program, despite being less well-known, gives the investor a wide range of advantages.

It should be mentioned that the post office continues to rank among the top providers of banking services in the nation. It also carries more credibility than other investment options because it is overseen by the Ministry of Finance.

The Monthly Income Scheme for Post Offices’ Key Features

The Monthly Income Scheme has a 5-year maturity term. Therefore, after this time period, the customer should ideally withdraw the money. The consumer will receive all of the money invested in the scheme at the conclusion of the term. Additionally, for the entire period, he or she will benefit from the fixed monthly salary.

The following perks will be paid if the consumer is forced to withdraw the funds before 5 years

● Withdrawal of a deposit within a year: The customer is not compensated.
● Withdrawing a deposit between one and three years after it has been made: The consumer receives their entire deposit back, less a small penalty of 2 percent.
● After three years, the consumer may withdraw their entire deposit.

The following are additional crucial aspects of the plan:

● The investment carries zero risk.
● The customer has the option to designate someone else to receive the benefits in the terrible case of his or her demise.
● The program offers the option of moving money into a recurring deposit.
● POMIS allows even minors to invest.
● It is completely free to move the POMIS account from one post office to another.
● A different account must be formed for each deposit the customer makes at the post office. One benefit of this situation is that one person can open many accounts, each with a maximum amount of Rs. 4.5 lakh. This is the maximum sum that the client can invest.

● Cheques or cash can be used to open the account. If the client chooses to make the initial payment by check, the date the check is realized in the government account will serve as the date the account is opened for the customer.

● Two or three persons may open a joint account. In a joint account, each account holder has an equal portion. If necessary, a single account can be changed into a shared one. The opposite is also conceivable.

The Workings of the Post Office Monthly Income Scheme

The procedure of investing in POMIS is simple and needs little paperwork. A copy of the investor’s identity and address proof as well as a few passport-size photos must be submitted.

The passport, ration card, PAN card, or voter identification card can be used as identification. It is necessary for the consumer to open an account at first, either individually or jointly.

Conditions for Post Office Monthly Income Scheme Eligibility:

The post office monthly income scheme was created with risk-averse investors in mind—those who want regular monthly payments but are reluctant to participate in equity instruments. Thus, investors in this plan are typically retirees or elderly individuals.

● The customer must be an Indian resident in order to invest in this scheme, and that’s the only need.

● NRIs are not eligible to use this program’s benefits.

● The age requirement to participate in the program is ten years old.

● A minor may only invest up to Rs. 3,000,000 in POMIS.

Interest Rate on Post Office MIS in 2022

The Post Office Monthly Income Scheme (POMIS) ensures that the investment will generate money in the form of interest. The Finance Ministry and the Central Government determine the interest rate for a Post Office MIS.

Every quarter, the applicable interest rate is disclosed. The returns produced by government bonds with the same maturity date determine the interest rate. 6.60 percent is the current Post Office MIS Interest Rate, effective from April 1 until June 30, 2022.

Monthly interest payments are made. Investors have the option to choose automatic withdrawal transfers. In other words, by using a Post Dated Cheque (PDC) or an Electronic Clearing System, the interest can be automatically sent to the savings account.

Investors can always reinvest the full corpus into the same scheme after the securities mature. The account continues to collect interest for up to two years at the Post Office Savings Account interest rate in the absence of any withdrawals or reinvestments.

In addition, no TDS is taken from interest payments made. However, the investor must pay taxes on the interest received.

For the Post Office Monthly Income Scheme, use this calculator
One has the option to either withdraw or reinvest the money when a savings plan matures. Investors who want a regular or extra income from their investments might consider the Post Office Monthly Income Scheme (MIS).

What is the purpose of a Post Office Monthly Income Scheme Calculator?

The advantages of the post office monthly income program calculator are as follows:

Calculate the monthly interest: The POMIS calculator for the post office monthly income scheme aids in calculating the monthly interest that an investor in POMIS might expect to receive.

Retirement savings: One can plan their investments using various calculators available on They can contrast the outcomes with different monthly income plans using the information from the post office MIS interest rate calculator. One can successfully plan their budgets (incomes and expenses) by predicting their interest amount.

Simple to use: Using the calculator is quite easy. Entering the investment amount and the current interest rate is all that is required.

Accessible and precise: The online calculator is quick and dependable. It is reachable from anywhere.

Time-saving tool: The financial goal calculator provides results in only a few seconds, saving the investor’s time.

Read More: Step by Step Portfolio Planning Process

CA Mukesh Gupta
CA Mukesh Gupta
Mukesh Gupta is the founder and director of Wealthcare. He is Fellow chartered accountant, Certified Financial Planner and Certified Public Financial advisor. He is in financial services industry since 1994. He conducts free money management sessions for corporates and associations on topics related to Personal finance. His previous engagement was with Birla Sunlife group. He regularly writes on topics related to Personal finance and occasionally appear on electronic media.

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