The Post Office Monthly Income Scheme (POMIS) is one of the popular savings schemes among low-risk investors looking for a fixed monthly income. The government-backed small savings scheme is specially preferred by retirees and individuals who want regular earnings without taking market-linked risks. In a joint Post Office MIS account, one can invest up to Rs 15 lakh. How much monthly income can they earn if they invest Rs 15 lakh in their joint Post Office MIS account.
Limits under Post Office MIS account
Under the current rules, an individual can invest up to Rs 9 lakh in a single account and up to Rs 15 lakh in a joint account. The scheme currently offers an interest rate of 7.4% per annum, payable every month.
Deposits in all the Post Office MIS accounts taken together for an individual should not exceed Rs 9 lakh in a single account and Rs 15 lakh in a joint account.
The interest rate for the Post Office MIS is fixed and announced by the central government quarterly.
How much monthly income can you get from a Rs 15 lakh investment in Post Office MIS?
If you invest Rs 15 lakh in a joint Post Office Monthly Income Scheme account at the current interest rate of 7.4%, the monthly payout will be calculated as follows:
Investment amount: Rs 15,00,000
Monthly income: Rs 9,249.
Annual interest: Rs 1,11,000
So, an investor will receive Rs 9,250 every month for a 5-year tenure.
Since the scheme’s tenure is 5 years, the total interest income over the entire period will be:
Monthly income: Rs 9,250
Total months: 60
Total interest earned in 5 years: Rs 5,55,000
Penalty for premature closure of MIS
The premature closure of a Post Office MIS account is not allowed before the expiry of one year from the date of the opening of the account.
If the account is closed on or before the expiry of 3 years, an amount equal to 2% of the deposit will be deducted and the remainder will be paid. If the account is closed after the expiry of 3 years, an amount equal to 1% of the deposit will be deducted and the remainder will be paid.
Can you open a Post Office MIS account in a bank?
No, the Post Office MIS is managed by the Department of Posts and the account can be opened only in a post office.
Is tax benefit available on Post Office MIS deposits?
Investments made under the Post Office Monthly Income Scheme (POMIS) are not tax deductible under the Old Tax Regime, and the interest generated each month is fully taxed at your personal income tax slab rate. However, TDS (Tax Deducted at Source) is not deducted by the post office on the Post Office Monthly Income Scheme (POMIS) interest.
