Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme operated through India Post that pays interest monthly on a lump sum deposit. The principal is returned in full at maturity (5 years). No market risk — the interest rate is set by the Government of India and guaranteed for the full 5-year tenure at the time of opening.

Current interest rate: 7.4% per annum (Q1 FY 2025–26). Rate is reviewed quarterly by the Ministry of Finance — update the Interest Rate field in the calculator if the rate changes in a subsequent quarter. Check indiapost.gov.in or the calculator’s pre-filled rate for the latest figure.

Investment limits: ₹1,000 minimum, ₹9 lakh maximum for a single account, ₹15 lakh maximum for a joint account (up to 3 adults). A person can open multiple MIS accounts but the combined principal across all accounts cannot exceed ₹9 lakh (single) or ₹15 lakh (joint). NRIs are not eligible for POMIS — only resident Indian individuals and minors (through guardian) can invest.

Monthly payout: interest is credited to the linked post office savings account on the same date each month (one month after deposit). Formula: Monthly Income = (Investment Amount × Annual Rate) ÷ 12. The payout is simple interest — no compounding during the 5-year tenure. Principal is returned at maturity with no bonus (the 5% maturity bonus was discontinued in 2011).

Monthly Income Reference Table at 7.4% p.a.

⚠️ Update this table if the interest rate changes in a subsequent quarter. Current rate: 7.4% p.a. (Q1 FY 2025–26)

Investment Amount	Monthly Income (₹)	Annual Income (₹)	Total Interest over 5 Years (₹)	Maturity Amount (₹)
₹1,00,000	₹617	₹7,400	₹37,000	₹1,00,000
₹2,00,000	₹1,233	₹14,800	₹74,000	₹2,00,000
₹3,00,000	₹1,850	₹22,200	₹1,11,000	₹3,00,000
₹4,50,000	₹2,775	₹33,300	₹1,66,500	₹4,50,000
₹6,00,000	₹3,700	₹44,400	₹2,22,000	₹6,00,000
₹7,50,000	₹4,625	₹55,500	₹2,77,500	₹7,50,000
₹9,00,000	₹5,550	₹66,600	₹3,33,000	₹9,00,000
₹15,00,000 (joint max)	₹9,250	₹1,11,000	₹5,55,000	₹15,00,000

Monthly income figures rounded to nearest rupee. Maturity amount = original principal (no bonus or compounding). Total interest = monthly income × 60 months.

Post Office MIS vs FD vs SCSS — Which Is Better for Monthly Income?

Feature	Post Office MIS	Bank FD (monthly payout)	SCSS (Senior Citizens)
Current Rate	7.4% p.a.	6.5–7.25% p.a. (varies by bank)	8.2% p.a. ✅ Highest
Payout Frequency	Monthly ✅	Monthly (if opted)	Quarterly
Max Investment	₹9L single / ₹15L joint	No limit	₹30L (age 60+)
Tenure	5 years	Flexible (7 days–10 years)	5 years (extendable)
Risk	Zero — Govt. guaranteed	DICGC insured up to ₹5L	Zero — Govt. guaranteed
Tax on Interest	Taxable, no TDS at source*	TDS if interest > ₹40,000/yr	TDS if interest > ₹50,000/yr
80C Deduction	No	Only 5-year tax-saver FD	Yes ✅
Premature Withdrawal	After 1 year (penalty)	Usually allowed (penalty)	After 1 year (penalty)
Who should use	All ages, regular income need	Flexibility needed	Age 60+ only ✅

*POMIS interest: TDS is not deducted at source by India Post, but the interest is taxable under ‘Income from Other Sources’ — declare in ITR. If your total income is below the taxable limit, submit Form 15G/15H to the post office to confirm no TDS obligation. SCSS has a higher rate (8.2%) and 80C benefit but is restricted to age 60+.

How to Use This Calculator

Enter Investment Amount — between ₹1,000 and ₹9,00,000 for single account (or up to ₹15,00,000 for joint — enter combined amount)
Enter Interest Rate — pre-filled at 7.4% (current Q1 FY 2025–26 rate). Adjust if rate has been revised since
Enter Lock-in Period — standard POMIS tenure is 5 years. Adjust only to compare hypothetical scenarios
Result shows instantly — Monthly Income, Annual Income, Total Interest over tenure, and Maturity Amount

Tip: to find how much to invest to receive a target monthly income, work backwards — Target Monthly Income × 12 ÷ 7.4% = Required Investment. Example: for ₹5,000/month — ₹5,000 × 12 ÷ 0.074 = ₹8,10,811. Since the single-account limit is ₹9L, ₹5,000/month target is achievable with one account. For higher monthly income, open a joint account (up to ₹15L).

Premature Withdrawal Rules and Tax Treatment

Premature withdrawal is allowed after 1 year from the date of deposit. Withdrawing between 1 and 3 years: 2% of the principal is deducted as penalty. Withdrawing between 3 and 5 years: 1% of the principal is deducted. Withdrawal before 1 year: not permitted — the account must be held for at least 12 months.

On maturity at 5 years, the full principal is returned with no deduction. The monthly interest payouts received over the tenure are yours to keep regardless of whether you continue to maturity or withdraw early — the penalty applies only to the principal returned at premature closure. Tax: all interest earned from POMIS is taxable under ‘Income from Other Sources’ in your ITR. India Post does not deduct TDS at source (unlike banks). This means you are responsible for declaring the interest income annually. If you are in the 30% tax bracket, your effective post-tax yield at 7.4% is approximately 5.1%. Investors in the nil or 5% bracket benefit most from POMIS since the pre-tax rate is competitive.

Benefits of the Post Office MIS Scheme

Using the Post Office MIS Calculator helps you visualize the specific advantages of this scheme:

Guaranteed Monthly Income: The primary benefit is the assured payout every month, which helps in managing household bills and regular expenses.
Safety and Security: Unlike mutual funds or stocks, the capital in this scheme is secure. It is not affected by market fluctuations.
Joint Account Facility: You can open a joint account with a spouse, which doubles the investment cap and ensures the income benefits the family.
Maturity Benefits: Upon maturity, you get back your initial principal amount. Additionally, the maturity amount can be reinvested in the Post Office Time Deposit (TD) for further tax-saving benefits under Section 80C.

Frequently Asked Questions (FAQ)

The current POMIS interest rate is 7.4% per annum (Q1 FY 2025–26, applicable April–June 2025). The rate is reviewed every quarter by the Ministry of Finance and may be revised. Check indiapost.gov.in or the pre-filled rate in this calculator for the latest rate. The rate locked at the time of opening remains fixed for the full 5-year tenure — you are not affected by subsequent rate changes once your account is opened.

At 7.4% p.a.: Monthly Income = (₹5,00,000 × 7.4%) ÷ 12 = ₹3,083 per month. Over 5 years you receive ₹3,083 × 60 = ₹1,84,980 in interest. At maturity you get back ₹5,00,000. Total return over 5 years = ₹6,84,980. Use the calculator above to check any amount instantly.

Yes, you can open multiple POMIS accounts — but the combined principal across all single accounts in your name cannot exceed ₹9 lakh. For a joint account (up to 3 adults), the limit is ₹15 lakh. You can hold both a single and a joint account simultaneously — but your share of the joint account principal plus your single account principal cannot exceed ₹9 lakh combined. Opening accounts in different post offices does not bypass this limit.

It depends on the rate at the time of comparison and your age. If you are below 60: POMIS at 7.4% is competitive with or slightly higher than most bank FD monthly-payout options (currently 6.5–7.25% for 5-year FDs). POMIS has zero default risk (government guarantee) vs bank FDs (DICGC insured up to ₹5 lakh per bank). If you are 60 or above: SCSS at 8.2% is a better option — higher rate, quarterly payout, and Section 80C deduction benefit.

If the monthly interest is not withdrawn, it sits in your linked post office savings account and earns savings account interest (currently 4% p.a. on post office savings account). It does not compound back into the MIS principal — POMIS pays simple interest only. To maximise returns, withdraw the monthly interest and reinvest it in a recurring deposit (RD), SIP, or another instrument that compounds the income.