The Post Office Monthly Income Scheme (POMIS) turns a lump sum into a fixed monthly income for 5 years. It is backed by the Government of India, so the income is guaranteed, and anyone can open it, not only senior citizens.
Key POMIS rules
- Deposit: minimum ₹1,000. Maximum ₹9 lakh in a single account and ₹15 lakh in a joint account (up to three adults).
- Interest: 7.4% a year for July–September 2026, paid every month. The rate is fixed for the full 5 years.
- Tenure: 5 years, after which the deposit is returned.
- Early closure: not allowed in the first year. A 2% deduction applies if closed between one and three years, and 1% after three years.
- Tax: there is no deduction on the deposit, and the interest is taxable.
How to use the POMIS calculator
- Choose a single or joint account.
- Enter the deposit amount. Amounts above the account limit are not counted.
- Check the interest rate.
POMIS formula
Monthly income = Deposit × Rate ÷ 100 ÷ 12Example
You deposit ₹9,00,000 in a single POMIS account at 7.4%.
- Monthly income = ₹5,550
- Yearly income = ₹66,600
- Total interest in 5 years = ₹3,33,000
- The ₹9,00,000 deposit is returned after 5 years.
Income for different deposits
| Deposit | Monthly income |
|---|---|
| ₹5,00,000 | ₹3,083 |
| ₹9,00,000 (single limit) | ₹5,550 |
| ₹15,00,000 (joint limit) | ₹9,250 |
Tips
- Put the monthly interest to work. If you don't need the income, start an RD with it. See the RD calculator.
- Retired? The SCSS calculator shows a higher-rate option for people aged 60 and above.
FAQ
What is the POMIS interest rate now?
7.4% a year for the July–September 2026 quarter, paid monthly. The rate stays fixed for 5 years once you invest.
What is the maximum deposit in post office MIS?
₹9 lakh in a single account and ₹15 lakh in a joint account.
Is POMIS interest taxable?
Yes. The monthly interest is added to your income and taxed at your slab rate.
Can I withdraw before 5 years?
Only after one year, with a 2% deduction up to three years and 1% after that.