How It Works: Post Office Monthly Income Scheme (POMIS)
POMIS is a government small-savings scheme designed to provide periodic interest payouts under the applicable scheme terms. It may suit users who value regular income and a defined tenure, but suitability depends on the person’s circumstances and current rules.
2026 Limits and Algorithms
The page shows the currently applicable deposit limits and rate assumptions for the stated period. Verify these limits and rates against the latest official scheme notification before relying on them. 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.