Post Office Monthly Income Scheme (MIS) Calculator
Use our Post Office MIS Calculator to estimate your monthly income from the Post Office Monthly Income Scheme. Learn how the scheme works, its benefits, and more below.
Calculate Your Monthly Income
What is the Post Office Monthly Income Scheme (MIS)?
The Post Office Monthly Income Scheme (MIS) is a popular investment option in India that provides a guaranteed monthly income to investors. It is a low-risk investment option backed by the Government of India, making it a safe choice for conservative investors. Under the MIS, investors can deposit a lump sum amount in a post office account and earn a fixed interest on their investment, which is paid out monthly. The scheme has a tenure of 5 years, after which the principal amount can be withdrawn or reinvested.
How Does the Post Office MIS Calculator Work?
The Post Office MIS Calculator helps you estimate the monthly income you can earn from your investment in the scheme by considering the following parameters:
- Investment Amount: The lump sum amount invested in the Post Office MIS.
- Annual Interest Rate: The interest rate offered by the Post Office on the MIS investment.
The calculator uses the following formula to estimate the monthly income:
Monthly Income = (Investment Amount × Annual Interest Rate) / 12
Benefits of the Post Office Monthly Income Scheme (MIS)
- Guaranteed Income: The Post Office MIS provides a guaranteed monthly income, making it a reliable source of regular earnings.
- Low Risk: The scheme is backed by the Government of India, ensuring the safety of your investment.
- Fixed Tenure: The scheme has a tenure of 5 years, providing a clear timeline for your investment.
- Nomination Facility: The scheme allows investors to nominate beneficiaries, ensuring that the investment benefits are passed on in case of unforeseen events.
- Reinvestment Option: After the tenure ends, investors can withdraw the principal amount or reinvest it in the scheme for another term.
Frequently Asked Questions (FAQ)
1. What is the maximum investment limit in the Post Office MIS?
The maximum investment limit for a single account in the Post Office MIS is ₹4.5 lakh, and for a joint account, it is ₹9 lakh. You can open multiple accounts, but the total investment across all accounts should not exceed these limits.
2. Is the interest earned from the Post Office MIS taxable?
Yes, the interest earned from the Post Office MIS is taxable. It is added to your total income and taxed according to your income tax slab. However, there is no TDS (Tax Deducted at Source) on the interest earned.
3. Can I withdraw my investment from the Post Office MIS before the tenure ends?
Yes, premature withdrawal is allowed after one year from the date of investment. However, if you withdraw before the completion of 3 years, a penalty of 2% of the principal amount is deducted. If you withdraw after 3 years but before the completion of 5 years, a penalty of 1% is deducted.
4. Can I transfer my Post Office MIS account to another post office?
Yes, the Post Office MIS account can be transferred from one post office to another. You need to submit a transfer application along with the passbook at your current post office branch.
5. Is there any risk associated with the Post Office MIS?
The Post Office MIS is considered a very low-risk investment since it is backed by the Government of India. The principal amount and interest payments are secure, making it a safe option for conservative investors.