National Savings Monthly Income Account (MIS) Calculator | Post Office MIS Calculator

The National Savings Monthly Income Scheme (MIS) is a government-backed investment scheme that offers a fixed monthly income at an interest rate of 7.4% p.a., payable monthly. This scheme is ideal for investors seeking a regular and reliable income stream with the safety of a government guarantee. Use this guide to understand your potential monthly returns, total interest earned, and maturity value based on your investment amount. Whether you’re considering a single or a joint account, this information will help you estimate your future returns from the Post Office MIS scheme.

How the Post Office MIS Calculator Works

To estimate your returns from the MIS, you can use the following parameters:

• Account Type: Choose between a single account (maximum investment of ₹9,00,000) or a joint account (maximum investment of ₹15,00,000).
• Investment Amount (₹): Enter the amount you wish to invest. The minimum deposit is ₹1,000, and subsequent investments must be in multiples of ₹1,000.
• Tenure: The tenure for the Post Office MIS scheme is fixed at 5 years.
• Interest Rate (7.4% p.a.): The interest is 7.4% per annum, paid out monthly on the principal amount.

The results you will get are:

• Monthly Income: The fixed amount you will receive every month from your investment.
• Total Interest: The cumulative interest you will earn over the 5-year tenure.
• Maturity Value: The principal amount of your investment which is returned to you at the end of the 5-year term.

Key Features of the Post Office MIS

• Guaranteed Returns: The scheme provides a steady and guaranteed income stream with a 7.4% p.a. interest rate paid monthly.
• Secure Investment: As a government-backed investment, the Post Office MIS scheme ensures your principal amount is safe and not subject to market risks.
• Tax Implications: While the investment does not qualify for Section 80C tax benefits, the interest income is taxable. No TDS is deducted on the interest earned, making it a popular choice for conservative investors.
• Fixed Tenure: The 5-year lock-in period ensures your investment earns interest without being affected by market fluctuations.
• Account Portability: You can transfer your MIS account from one post office to another anywhere in India.
• Nomination Facility: A nomination facility is available, which can be made at the time of opening the account or later.

How to Use the Post Office MIS Calculator

1. Choose Account Type: Select whether you’re investing in a single or joint account.
2. Enter Investment Amount: Specify the amount you wish to invest, which can be between ₹1,000 and ₹9,00,000 for a single account or up to ₹15,00,000 for a joint account.
3. Calculate Monthly Income: The calculator will instantly display your estimated monthly income, total interest earned over the tenure, and the final maturity value.

Premature Withdrawal Rules

You can close your Post Office MIS account before the 5-year maturity, but certain conditions and penalties apply:

• No withdrawals are permitted within the first year of opening the account.
• If you close the account between one and three years, a penalty of 2% of the principal amount is deducted.
• If the account is closed between three and five years, a 1% penalty on the principal is applied.

Author’s Note: This calculator provides an estimate based on the data you enter and the current interest rate, which is subject to quarterly review by the government. The results are for informational purposes only and should not be considered financial advice. For personalized advice, it is always recommended to consult with a qualified financial advisor.

Frequently Asked Questions (FAQs)