HomeInvestmentPost Office MIS Calculator - Monthly Income Scheme

Post Office MIS Calculator – Monthly Income Scheme

MIS Calculator – Post Office MIS (Monthly Income Scheme) is one of the most secure investment options. This scheme is best for conservative investors. You must admit that investing can be a daunting task, especially if you’re new to the financial world or if you prefer to avoid risks. Luckily, there are safe and reliable options like the Post Office Monthly Income Scheme (POMIS) that cater to conservative investors seeking regular income.

In this guide, we will share how much return you can expect by investing in the MIS scheme using the MIS Calculator. In addition to that, we will share everything you need to know about POMIS, from its benefits to the steps for opening an account. By the end, you’ll be ready to decide if this scheme is the right fit for your financial goals.

Post Office MIS Calculator - Monthly Income Scheme

What is the Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme is a government-backed savings plan offered by the Indian Post Office. It is created to offer investors a reliable and steady monthly income, making it a great choice for retirees or individuals seeking consistent returns. Here are some key features of POMIS –

  • Assured monthly income: You receive a fixed amount every month.
  • Tenure: The investment period is 5 years.
  • Low risk: Being a government scheme, it’s considered very safe.
  • Taxation: Interest earned is taxable, but the principal amount is exempt from tax deduction at source (TDS).

Why Choose the Post Office Monthly Income Scheme?

Stability and Security

One of the main reasons people opt for POMIS is its security. Unlike stocks or mutual funds, which can be volatile, POMIS provides a predictable return. This is particularly beneficial for retirees who rely on a steady income stream.

Regular Income

Investors receive interest payments on a monthly basis. This feature is especially attractive for those who need a supplementary income, such as pensioners or homemakers.

Simple and Hassle-Free

The process of opening a POMIS account is straightforward. You don’t need to navigate the complexities of the stock market or worry about fluctuating returns. With POMIS, you know exactly what to expect.

How Does POMIS Work?

Investment Limits

Individuals can invest a minimum of ₹1,000 and up to a maximum of ₹4.5 lakh in a single account. For joint accounts, the limit is ₹9 lakh. These limits ensure that both small and large investors can benefit from the scheme.

Interest Rate

The interest rate for POMIS is subject to periodic revisions by the government. As of now, it’s set at 7.4% per annum, paid out monthly. Here’s a quick example: if you invest ₹4.5 lakh, you’ll receive a monthly interest of ₹2,775.

Maturity Period

The scheme has a lock-in period of 5 years. Upon maturity, you can either withdraw your principal amount or reinvest it.

MIS Calculator

The Post Office MIS Calculator is an online tool designed to help potential investors calculate the monthly interest they can earn from the Post Office Monthly Income Scheme. You can also download an Excel file and use this MIS Calculator offline.

It’s very easy to use the MIS Calculator. You just enter the investment amount and there you have it! The MIS calculator performs calculations and displays the expected monthly payment for you. It’s like having a financial advisor in your pocket.


Let’s say you invest ₹4,50,000 in the Post Office MIS at an interest rate of 7.4%. Here’s what the calculation looks like:

  • Investment: ₹4,50,000
  • Interest Rate: 7.4%
  • Monthly Income: (₹4,50,000 * 7.4%) / 12 = ₹2,775

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Benefits of Using the Calculator

  1. Accuracy: No more guessing games. The calculator provides precise figures based on the latest interest rates.
  2. Time-Saving: Skip the manual calculations and save time.  
  3. Financial Planning: Helps in better financial planning by giving you a clear picture of your future earnings.
  4. User-Friendly: Even if you’re not a math whiz, you can easily use this tool to understand your potential returns.

Opening a POMIS Account

Eligibility Criteria

To open a POMIS account, you need to be a resident of India. NRIs and HUFs (Hindu Undivided Families) are not eligible. Also, the minimum age requirement is 10 years, making it a good option for securing your child’s future.

Required Documents

Here’s a list of documents you’ll need:

  • Identity proof: Aadhar card, PAN card, or voter ID.
  • Address proof: Utility bill, Aadhar card, or passport.
  • Passport-size photographs: Typically two.

Steps to Open an Account

  1. Visit the nearest post office: Head to your local post office to get started.
  2. Fill out the application form: Provide the necessary details and attach your documents.
  3. Deposit the amount: You can make the deposit through cash, cheque, or demand draft.
  4. Collect your passbook: Once the account is set up, you’ll receive a passbook that details your transactions.


Can I Withdraw the Principal Amount Before Maturity?

Yes, you can, but there are penalties. If you withdraw between 1 and 3 years, a 2% penalty is applied. For withdrawals between 3 and 5 years, the penalty is 1%.

Can I Transfer My POMIS Account to Another Post Office?

Absolutely! You can transfer your POMIS account to any post office in India without any hassle.

What Happens If the Investor Passes Away?

In the unfortunate event of the investor’s death, the nominee or legal heir can claim the proceeds.

Is It Possible to Extend the Scheme After Maturity?

Yes, after the initial 5-year period, you can reinvest in POMIS for another term.

How Is the Interest Payment Made?

The monthly interest can be credited directly to your savings account, making it easy to access your funds.

Advantages of the Post Office Monthly Income Scheme

Safe Investment

Given its government backing, POMIS is among the safest investment options available. You don’t have to worry about losing your principal amount, making it perfect for risk-averse individuals.

Fixed Returns

The assurance of fixed returns helps in better financial planning. You can predict your income over the next five years, which is especially useful for budgeting.

Tax Benefits

While the interest earned is taxable, there’s no TDS (Tax Deducted at Source). This means you receive the full interest amount, and tax is only payable when you file your return.

Disadvantages of POMIS

Limited Growth Potential

POMIS offers fixed returns, which might not be enough to beat inflation over time. If you’re looking for high-growth investments, this might not be the best option.

Interest Rate Risk

The interest rate is fixed at the time of investment and remains unchanged for the tenure. If market rates increase, new investors might get higher rates while existing ones are locked into the lower rate.

Comparing POMIS with Other Investment Options

POMIS vs. Fixed Deposits

While both are low-risk, fixed-income investments, POMIS generally offers slightly higher interest rates compared to bank fixed deposits (FDs). However, FDs might offer more flexibility in terms of tenure and premature withdrawal terms.

POMIS vs. Mutual Funds

Mutual funds can offer higher returns but come with higher risk. POMIS is better suited for those who prefer guaranteed returns without exposure to market volatility.

POMIS vs. Senior Citizen Savings Scheme (SCSS)

SCSS offers higher interest rates than POMIS and is tailored for individuals above 60 years. However, SCSS has a higher investment limit and stricter rules regarding premature withdrawals.

Tips for Maximizing Benefits from POMIS

Start Early

Investing early allows you to take full advantage of the scheme’s benefits over multiple terms. Reinvesting the principal amount after maturity can compound your returns.

Diversify Your Investments

While POMIS is safe, it’s wise to diversify. Pairing it with other investment avenues like mutual funds or PPF (Public Provident Fund) can balance safety and growth.

Consider Joint Accounts

For larger investments, consider opening a joint account to benefit from the higher maximum investment limit.

Plan for Taxes

Since interest earned is taxable, plan your finances to account for this. Use tax-saving investments to offset the tax liability from POMIS.


The Post Office Monthly Income Scheme is a gem for those seeking a safe, reliable, and straightforward investment option. Whether you’re a retiree looking for a steady income or a conservative investor wanting a low-risk portfolio, POMIS offers peace of mind with its guaranteed returns. By understanding its features, benefits, and limitations, you can make an informed decision that aligns with your financial goals.

Invest wisely, and let POMIS help secure your financial future!

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.