Post office monthly income scheme calculator: Post office savings plans are a great choice for a secure investment, especially if you are looking for a monthly income.
Let’s explore a post office scheme that provides a steady monthly income.
Post Office Monthly Income Scheme (POMIS)
POMIS is a government savings program operated by the Department of Post or India Post, offering monthly interest payouts. Currently, the scheme provides an annual interest rate of 7.4%.
How returns work in POMIS?
Under this scheme, you invest a fixed amount once and receive a monthly income in the form of interest.
The scheme matures in 5 years, at which point you get back your initial investment. In essence, by investing once, you receive a fixed monthly amount for five years.
After maturity, you can reinvest the entire amount in the scheme. If the money is not withdrawn or reinvested after maturity, you continue to earn interest on the total amount as per the post office savings account interest rate.
TDS (tax deducted at source) is not deducted on the invested amount in the Post Office Monthly Income Scheme, but the interest earned is taxable.
Post Office Monthly Income Scheme Calculator
If you are considering investing in the Post Office Monthly Income Scheme, you can use a calculator to estimate your returns.
Determine the amount you plan to invest, and based on the current interest rate of 7.4%, calculate the monthly interest.
Example: Return on an investment of Rs 5 lakh:
Suppose you want to invest Rs 5 lakh in this scheme. The calculation would be as follows:
Amount Invested: Rs 5,00,000
Interest Rate: 7.4%
Time Period: 5 years
1) Monthly interest earned: Rs 3,084
2) Total interest earned over 5 years: Rs 1,85,000
So, on a Rs 5 lakh investment over 5 years, you would earn Rs 1,85,000 in interest, with over Rs 3,000 coming into your account every month.