Rs 15 lakh invested in this Post Office savings scheme: Check how much monthly income you can earn for 5 years

The Post Office Monthly Income Scheme (POMIS) is a government-backed small savings scheme designed for investors looking for fixed monthly income without market-linked risks. The scheme is popular among retirees and conservative investors seeking stable returns.

Under current rules, an individual can invest up to Rs 9 lakh in a single MIS account and up to Rs 15 lakh in a joint account. The scheme currently offers 7.4% annual interest, payable every month. The interest rate is revised quarterly by the government.

If Rs 15 lakh is invested in a joint Post Office Monthly Income Scheme account at the current 7.4% interest rate:
● Annual interest income will be Rs 1,11,000
● The monthly payout will be Rs 9,249
So, investors can receive nearly Rs 9,250 every month for the 5-year scheme

Since the scheme has a 5-year maturity period, the total interest earned over the entire tenure can be substantial. Monthly income will be Rs 9,250, and the total number of months is 60. So, at the current payout level, the total interest income over 5 years will be approximately Rs 5.55 lakh.

Premature closure of a Post Office MIS account is not allowed before the completion of one year from account opening. If closed between one and three years, 2% of the deposit amount is deducted as a penalty. If closed after the expiry of 3 years, 1% of the deposit is deducted.

No, the Post Office Monthly Income Scheme is operated only through the Department of Posts. Investors can open the account only at post offices and not through banks.

Investments in Post Office MIS do not qualify for tax deduction under the old tax regime. The monthly interest earned is fully taxable according to the investor’s income tax slab. However, the post office does not deduct TDS on MIS interest payments.