Post Office Monthly Income Scheme Calculator
Calculate monthly interest payout, total returns, and maturity amount for India Post Office Monthly Income Scheme (POMIS) accounts.
Understanding Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings program designed for conservative investors seeking fixed, predictable monthly returns on a lump-sum investment. It offers capital security and guaranteed monthly interest payouts over a 5-year lock-in period.
How Monthly Income Interest is Calculated
Interest for the Post Office Monthly Income Scheme is calculated on a simple interest basis and credited directly to the account holder's savings account on a monthly basis:
$$\text{Monthly Interest Payout} = \frac{\text{Principal Investment} \times \text{Annual Interest Rate}}{12 \times 100}$$ $$\text{Total 5-Year Interest Payout} = \text{Monthly Interest Payout} \times 60$$Features and Limits of POMIS
POMIS provides steady cash flows with specific account guidelines:
- Tenure: Fixed 5-year lock-in tenure.
- Guaranteed Payouts: Fixed interest rate determined by government authorities upon deposit opening.
- Principal Safety: 100% sovereign backing protects the original capital amount.
- Full Maturity Return: The original principal is returned in full at the end of the 5-year tenure.
Compare fixed-income investments with our Annuity Calculator and CD Calculator.
Frequently Asked Questions
What is the Post Office Monthly Income Scheme (POMIS)?
POMIS is a government-backed fixed-income scheme where you deposit a lump sum for 5 years and receive monthly interest payouts until maturity.
How often is POMIS interest paid?
Interest is credited every month starting one month after the initial deposit date directly into your savings account.
What happens to the principal amount at maturity?
At the end of the 5-year lock-in period, the entire original principal deposit is returned to you.
Can I withdraw funds before 5 years?
Premature closure is typically allowed after 1 year, subject to statutory deduction penalties depending on whether withdrawal occurs before or after 3 years.
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