What is Post Office Monthly Income Scheme?

POMIS is a government-backed savings scheme offering fixed monthly interest payouts on a lump-sum deposit, with a 5-year maturity period, suitable for those seeking regular income.

POMIS Calculator 2026 | Post Office Monthly Income Scheme

Post Office Monthly Income Scheme (POMIS) — Complete Guide for Regular Income

The Post Office Monthly Income Scheme (POMIS or MIS) is a government-backed savings scheme that provides guaranteed monthly income, making it ideal for retirees, homemakers, and anyone seeking regular passive income without equity market risk. It is available at all post office branches across India.

Current POMIS interest rate: 7.4% per annum (FY 2025-26), paid monthly. This means ₹1,00,000 invested generates ₹616.67/month. Maximum investment: ₹9 lakh for a single account, ₹15 lakh for a joint account. The tenure is 5 years, after which the principal is returned in full. Premature closure is allowed after 1 year with penalty (1% deduction from Year 1-3, 0.5% from Year 3-5).

POMIS interest is fully taxable at your applicable income tax slab rate. TDS is not deducted at source by the post office, but you must report this interest income in your annual ITR. For retirees in the zero-tax bracket (income below ₹3 lakh) or low-tax bracket, POMIS provides an effective tax-free or low-tax income stream with absolute sovereign safety.

POMIS vs Bank FD: POMIS at 7.4% pays monthly (the interest cannot be reinvested through the post office itself). Bank FDs with monthly payout typically offer 6.5-7.5% at major banks, or up to 8% at small finance banks. POMIS advantage: sovereign government backing — no DICGC limit applies. Disadvantage: the interest cannot be automatically reinvested into more POMIS to compound. Strategy: auto-transfer monthly POMIS interest into a recurring deposit or mutual fund SIP to achieve compounding.

POMIS is particularly powerful as a retirement income tool. A retired couple can invest ₹9 lakh each (₹18 lakh total) in separate single accounts, generating ₹9,000+₹9,000 = ₹18,000/month combined at 7.4%. Additionally, opening a joint account for another ₹15 lakh adds another ₹9,250/month. Maximum POMIS income for a couple: ₹27,250/month from ₹33 lakh investment. Combine with SCSS for comprehensive government-scheme retirement income planning.

CalcuTools India · Free calculator · Updated July 2026 · FY 2025-26 · Not financial advice · About · How we verify

How It Works: Post Office Monthly Income Scheme (POMIS)

The POMIS is a highly secure, sovereign-backed investment scheme designed specifically to provide a steady, reliable stream of passive income. It is the preferred parking vehicle for retirees who require monthly liquidity without risking their principal capital.

2026 Limits and Algorithms

Recent fiscal revisions have drastically increased the deposit capacities to combat inflation. An individual can now deposit a maximum of ₹9,00,000 in a single account, while a joint account can hold up to ₹15,00,000. The lock-in period is strictly 5 years. The current interest rate of 7.4% p.a. is calculated annually but disbursed monthly directly into your linked savings account.

Taxation Rules

Unlike the PPF or SSY, the Post Office MIS does not offer Section 80C deductions on the principal amount. Furthermore, the monthly interest you receive is fully taxable under your respective income tax slab. However, importantly, there is no TDS (Tax Deducted at Source) cut by the post office on these payouts.

🔄 Last Updated: July 2026 · FY 2025-26 rates applied

📋 Official References

📅 Last Updated: July 2026 · FY 2025-26 ✅ Verified: Against official government sources ⚠️ Disclaimer: Results are indicative only · Not financial advice 📋 How we verify · Editorial policy

ℹ️ For informational use only. Results are estimates based on inputs provided. Not financial, tax, or investment advice. Consult a qualified professional for personalised guidance. Rates are indicative and may vary. Read full disclaimer.

About the Pomis

This free Indian calculator helps you quickly compute accurate results for pomis — updated for FY 2025-26. All calculations use official formulas verified against government and authoritative sources.

How to Use This Calculator

Enter your values in the fields above and click Calculate. Results update instantly. You can adjust any input and recalculate as many times as needed — completely free with no sign-up required.

Accuracy and Verification

Our pomis formulas are sourced from official Indian regulatory bodies including the Income Tax Department, EPFO, RBI, Ministry of Finance, and WHO where applicable. We verify results against official calculators before publishing and update with every budget and policy change.

Disclaimer

Results from this calculator are indicative and for informational purposes only. For significant financial decisions, consult a qualified financial advisor, chartered accountant, or relevant professional. Tax laws and rates change — always verify with official sources before acting on results.

CalcuTools India · Free calculator platform · About us · How we verify · Last Updated July 2026 · FY 2025-26