Post Office MIS calculator: How much will you earn on Rs 9 lakh investment

New Delhi: The Post Office Monthly Income Scheme is a stable investment option available to investors who prefer dependable, i.e. government-backed, instruments with guaranteed returns. POMIS account can be opened at a Post Office by sharing certain proofs of address and identity.
All about POMIS
Post Office Monthly Income Scheme (POMIS) offers s 7.4 per cent rate of interest with a minimum investment of Rs 1,000. There’s a Rs 9 lakh cap on individual investments and a Rs 15 lakh cap on joint account investments, in which the amount will be divided equally between the joint account holders.
Investors earn interest on investments at the end of every month. The interest may accrue to the account if may be credited to a PO savings account. To be sure, PMIS interest is taxable under the Income Tax Act. The scheme has a 1-year lock-in period. The maturity period is 5 years.
A 2 per cent deduction is made on the principal amount if the amount is withdrawn after 1 year but before 3 years. If the amount is withdrawn after 3 years but before 5 years, a 1 per cent deduction on the principal is made. POMIS can be extended for another 5 years in maturity.
How much interest will you earn from POMIS

If you invest Rs 9 lakh in POMIS for a 5-year period at 7.4 per cent interest rate, you will earn Rs 5,550 per month. This will total up to Rs 66,600 per year. At the end of the 5-year term, the investor may earn Rs 3.33 lakh in interest.
An investment of Rs 4.5 lakh will earn you an interest of Rs 2,775 per month, totalling up to Rs 33,300 per year. At the end of 5 years, the investment will earn a total interest of Rs 1.66 lakh.
A Rs 1 lakh investment will earn you an interest of Rs 617 per month. This will add up to Rs 7,404 per year. A total interest of Rs 88,848 will be earned at the end of 5 years.

(Disclaimer: The above calculations are based on the assumption that the principal remains the same. For more clarity check your passbook.)