POMIS is Better Than NSC ?

POSTED BY Mukesh Agarwal ON February 2, 2011 2:39 pm COMMENTS (3)

Hi Manish & All Members

One more thing i want to say that POMIS is good as comapred to NSC, if anyone wants to invest over 1,00,000 u/s 80c for saving Tax. POMIS gives better return than NSC. Below is a comparing chart between POMIS & NSC.
 
             6 YearsPOMIS+RD                      6 Years NSC
   
Sum Assured(A)                 1,00,000                    1,00,000
Monthly Interest                  667                          _
M.V Of R.D of 6yrs (b)          60,702                          _
5% Bonus on SA (c)             5,000                          _
Total ( b + c = D)                65,702                          _
   
After 6 Years Total (A+D)     1,65,702                      1,60,100
                                           No TDS                         No TDS
So its better to invest in POMIS which gives you Rs 5,702 more than NSC on 1 Lakhs, And Rs 25,659 upto 4.5 Lakhs. Isin’t It ?

NOTE- investment upto rs 1 lakhs is good in NSC as it saves tax u/s 80c but after that limit intrest earned on NSC is Taxable. So why not to choose POMIS ?

Mukesh
Hare Krishna

3 replies on this article “POMIS is Better Than NSC ?”

  1. Ramesh says:
    February 3, 2011 at 3:08 pm

    so this is a fight between 8.2 v/s 8.78%. the interest is taxable though. 🙂

    Reply
  2. Mukesh Agarwal says:
    February 3, 2011 at 2:47 pm

    @DR.PARITOSH V TRIVEDI

    The intrest rate @10.5% is an overall % of 6 years. You can yourself see here (www.indiapost.gov.in/netscape/6yearsMIS.html),

    Investment POMIS Rs 100000
    Total Return in 6 years with RD Rs 1,65,702,
    Intrest earned for 6 RS 65,702 ,
    So per year intrest 65,702/6yrs = Rs 10,950 appox

    So % intrest per year is 10,950*100/100000= 10.95% PA.

    But the actual return is 8.781% PA, Check the given calculator below https://www.jagoinvestor.com/calculators/html/Return_Calculator.html

    One Time Investment-100000
    Current Value-1,65,702
    Duration(Years)-6
    Percentage Per Year- 8.781%

    Mukesh
    Hare Krishna

    Reply
  3. DR.PARITOSH V TRIVEDI says:
    February 2, 2011 at 5:28 pm

    MUKESH
    AS MANSIH HAS SAID EARLIER IF THE MONTHLY INTEREST OF POMIS IS PUT IN POST RD WE CAN GET TOTAL RETURN UPTO 10.5%.CAN YOU CALCULATE HOW MUCH WILL BE THE FINAL RETURN IN ABOVE EXAMPLE WITH POMIS+PORD?

    Reply

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