What is the Post Office Monthly Scheme?

Post Office Monthly Income Scheme, or POMIS, is a pool of various schemes that guarantee a steady and risk-free income on your investment. These schemes are backed up by the government and hence are extremely reliable and secure. 

While there are a lot of other investment options in a Post Office, like a savings account, recurring bank account, time deposit and others, the Post Office Monthly Income Scheme is the highest interest-yielding scheme with an interest rate of 7.4%. Hence, the Post Office Monthly Scheme can be an ideal option for people looking to take minimum risk on their money while also obtaining a constant income from it.

POIMS yields a monthly income on your invested amount. This scheme is backed up and managed by the Ministry of Finance.

Post Office Monthly Income Scheme Calculator Formula

The formula to calculate the interest received from a post office monthly income scheme is a simple one. Here is how you can calculate the monthly interest on your investment in POMIS:

POIMS monthly interest = Amount Invested * Annual Rate of Interest/12

Let us have a close look at the above formula. 

Here,

The amount invested is the amount deposited in the POMIS scheme by the individual. The annual rate of interest is the interest rate offered by the post office on your POMIS scheme. However, this interest rate can undoubtedly vary from time to time. 

Hence, with the help of the above formula you can easily calculate the interest received on your invested amount every month. 

How Does the Post Office Monthly Income Scheme Calculator Work?

The Post Office Monthly Income Scheme Calculator is an excellent tool that prevents you from calculating huge amounts and eases off your work. The post office monthly income scheme calculator takes in various inputs based on which it calculates your monthly interest on your invested amount. Here are the inputs taken by the Post Office Monthly Income Scheme Calculator:

• Invested Amount: The POMIS calculator takes in as input the total investment amount that you are willing to put in the post office monthly income scheme. This amount can be any random amount of your choice. Individuals consider investing as less as Rs. 1000 per month in the POMIS scheme.
• Interest Rate: The POMIS calculator next takes in as input the interest rate offered by the post office at the time of your investment in the post office's monthly income scheme. Currently, the interest rate offered on POMIS is 7.4% per annum. However, this interest may vary with time and might differ at the time of investment made by you.
• Lock-in Period: The post office monthly income scheme also has a lock-in period criteria. The lock-in period criteria determine the time period for which you will be investing your money in the POMIS scheme. Hence, the Post Office Monthly Income Scheme Calculator takes in its third input as the lock-in period. 

Based on the above inputs given by any individual, the Post Office Monthly Income Scheme Calculator calculates the monthly income generated under the scheme. Ultimately, the POMIS calculator also uses the same Post Office Monthly Scheme Formula to calculate the monthly income generated.

How to Use ClearTax Post Office Monthly Scheme Calculator?

With the help of the ClearTax Post Office Monthly Income Scheme Calculator, you can calculate your monthly interest from the POMIS scheme with ease. The ClearTax post office monthly scheme calculator takes the interest rate, principal amount and the number of lock-in years as input to ultimately calculate your monthly interest. 

Here is how the ClearTax POMIS calculator works: 

Let us consider that Mr. A comes to know about the Post Office Monthly Income Scheme Calculator and considers investing a part of his income in the POMIS scheme. Before he invests his money in the POMIS scheme, Mr. A wants to calculate the monthly interest that will be generated upon his investment in the scheme.

While Mr. A is unaware of the Post Office Monthly Interest Scheme Formula, he wonders how to calculate his monthly income under the POMIS scheme. Here is how Mr. A can easily calculate his monthly income using the ClearTax Post Office Monthly Income Scheme Calculator:

• Visit ClearTax Post Office Monthly Income Scheme Calculator.
• The calculator asks for various inputs.
• Mr. A has enquired about the interest from the post office and was told that the current interest rate on the POMIS scheme was 7.4%.
• In the first input i.e. the interest rate asked by ClearTax Post Office Monthly Income Scheme Calculator, Mr. A gives 7.4% as the input.
• Next, the calculator asks for the principal amount to be invested. Mr. A has considered investing Rs 1,00,000 in the POMIS scheme, and hence Rs 1,00,000 will be his principal amount.
• He has also decided to invest this amount for a period of 5 years. Hence, in the third input on the ClearTax POMIS calculator, he enters 5 as the lock-in period.

The ClearTax POMIS calculator finally uses the above given formula to calculate the monthly interest for Mr. A which yields out to be Rs 616.67 per month. Hence, Mr. A was able to find out his monthly interest within seconds with the help of the ClearTax POMIS calculator.

Benefits of Post Office Monthly Income Scheme Calculator

Undoubtedly, the formula to calculate the interest earned on your investment under the Post Office Monthly Income Scheme Calculator is a simple one. Yet, calculations can be complex and tiring in the case of bigger investments.

Thus, in such a situation, the Post Office Monthly Income Scheme Calculator comes in as a saviour to help you calculate your interest amount within seconds. Here are some key benefits of using the Post Office Monthly Scheme Calculator:

• Gain Future Insights: The POMIS calculator helps you to have an insight into the future. By calculating the interest earned on your invested amount, you can know your monthly income or the compounded amount even before you have made an investment in the POMIS scheme.
• Plan Your Investments: The POMIS calculator also helps you efficiently plan your investments. With a prior insight on how much your money would be yielding in the years to come, you can easily consider other investment sectors to make an investment.
• Take Calculated Risk: POMIS is a risk-free scheme, and hence by calculating your monthly interest, you can decide to take calculated risk and consider other investment options for better gains.