Despite the proliferation of the equity cult in India, the good old neighbourhood post office remains a destination for millions of Indians, one of the principal attractions being the Post Office Monthly Income Scheme or POMIS. It gives the investor a steady guaranteed return on investments. It carries an assurance from the Government of India and is considered completely safe. For retirees, it is an excellent instrument, since it virtually acts as a pension plan.
Post Office MIS investment
One can invest a minimum of Rs 1,000 and a maximum of Rs 9 lakh for a period of 5 years in this scheme. If opened in joint names, the maximum investment rises to Rs 15 lakh. The POMIS carries a rate of interest which comes up for revision every quarter by the government. Right now, the rate is 7.4%.
Using a Post Office Monthly Income Scheme calculator, one can easily calculate how much interest the scheme will generate for you. However, it comes with a fixed 5-year tenure.
Post Office MIS Rs 5 lakh for 5 years
If a person invests Rs 5 lakh for 5 years in POMIS, he/she would get a return of Rs 3,083 per month as interest. After getting this interest every month, the principal amount will be returned to the investor. During the course of 5 years, or 60 months, a total of Rs 184,980 will be paid as interest to the accountholder.
For higher investments
Now consider higher investments. If you invest Rs 6 lakh for 5 years in the POMIS account, the account will pay you Rs 3,700 as interest every month. If the investment is raised to Rs 7 lakh, the monthly interest payout becomes Rs 4,317.
Rs 8/9 lakh investment
If an amount of Rs 8 lakh is invested, POMIS will generate Rs 4,933 every month. The interest payout will jump to Rs 5,550 if Rs 9 lakh is committed in the MIS account.
A prominent feature of POMIS is that no tax is deducted at source in a POMIS account. It is safe and, therefore, ideal for those who are risk-averse by nature.
If someone puts in the maximum Rs 15 lakh, he/she will get a monthly payment of Rs 9,250. This will continue for 60 months when the POMIS account will expire and the principal will be returned to the investor. There will be a total payout of Rs 5.55 lakh as interest in the 60 months.
Post Office MIS interest rate: For millions of Indians ensuring monthly cash flow is a challenge. The Post Office Monthly Income Scheme does it regularly for a huge number of people across the country. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
