Post Office Monthly Income Scheme: Tips to maxmise your returns in 5 years | MIS interest rate 2022, calculator

Post Office Monthly Income Scheme Interest Rate 2022, Calculator: The Post Office Monthly Income Scheme (POMIS) has emerged, over the years, as the most preferred investment schemes for people across ages. The trusted government scheme guarantees a fixed monthly income to account holders. The monthly interest is credited every month as income in the savings bank account of the subscriber. 

It is one of the most popular schemes not just because it guarantees monthly income to the subscribers of the scheme but also the invested amount remains safe in a secured government scheme without any risk to the principal amount. The principal amount is returned to the subscriber after the maturity of the scheme in five years. 

Tips to double your money in 5 years

The interest credited to savings account of an adult can be used to maximize the overall returns by starting a recurring deposit (RD) using the same monthly payouts from the monthly income scheme. Post office offers good returns on opening a recurring deposit account with them. 5.8% interested is quarterly compounded for a year RD. This means that on the investment amount of Rs 4.5 lakh, an investor will earn not just interest from the MIS scheme but also from the RD at the maturity of the scheme. 

Post Office Monthly Income Scheme calculator 

Rs 4,50,000 (principal amount) + [Rs 2475 (per month interest) x 60 months] = Rs 5,98,500  (Rs 4,50,000 + 148500 interest earned)

Recurring Deposit for 60 months (5 years) at 5.40% 

Rs 2475 RD for 60 months = Total investment Rs 2475 x 60 month = Rs 1,48,500 | Total Interest earned on RD = Rs 22,201

Total return from RD = Rs 1,48,500 + Rs 22,201 = Rs 1,70,700

Features

A person willing to start the Monthly Income Scheme can start the investment with a maximum deposit of Rs. 4.50 lakh in a single account. The scheme can also be opened in a joint account with an investment of Rs 9 lakh. Interest is payable on completion of a month from the date of opening and so on till maturity. A person can withdraw the interest from his savings account. However, one needs to keep in mind that if the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.

Any single adult can open the account, a guardian on behalf of minor and a minor above 10 years in his own name.

Account may be closed on expiry of 5 years from the date of opening by submitting prescribed application form with pass book at concerned Post Office. In case the account holder dies before the maturity, the account may be closed and amount will be refunded to nominee/legal heirs. Interest will be paid up to the preceding month, in which refund is made.