Post Office MIS Calculator
Post Office MIS Calculator
Monthly income on a 5-year sovereign-backed depositSingle account cap: ₹9 lakh · Joint account cap: ₹15 lakh (up to 3 adults; income split equally).
Tenure
5 years (fixed by scheme)
Interest is paid monthly; principal is returned at maturity. Premature withdrawal allowed after 1 year with penalty.
Monthly Income
₹3,083
Paid every month for 5 years · principal returned at maturity
Total Interest (5y)
₹1.85 L
Deposit
₹5 L
Total Payout
₹6.85 L
Current POMIS rate and tenure
The current Post Office Monthly Income Scheme rate is 7.40% per annum, paid as a fixed monthly income for 5 years. The rate locked at the time of opening applies throughout the tenure — quarterly Government of India rate resets affect only new deposits. This rate is valid from 2026-04-01 through 2026-06-30 for new POMIS accounts.
How the monthly income works
You deposit a lump sum, the post office pays interest every month directly into a linked savings account, and at the end of 5 years the full deposit is returned. The interest doesn\'t compound inside POMIS — it's paid out monthly, and the principal sits unchanged.
Monthly income = (Deposit × annual rate) ÷ 12. At 7.40% on a ₹9 lakh deposit: (9,00,000 × 7.40/100) ÷ 12 = ₹5,550 per month.
Deposit limits
- Minimum: ₹1,000 (multiples of ₹1,000 thereafter).
- Single account: ₹9 lakh aggregate cap, across all your single-name POMIS accounts.
- Joint account: ₹15 lakh aggregate cap, with up to 3 adult holders; income splits equally.
- Limits were last raised on 1 April 2023 — earlier caps were ₹4.5 lakh single and ₹9 lakh joint.
Tax treatment
POMIS interest is taxable as "Income from Other Sources" at your slab rate. No TDS is deducted by the post office — you self-declare in your ITR each year. There is no §80C deduction available for the deposit. Senior citizens can use §80TTB to deduct interest income up to ₹50,000 across all sources (savings, FD, POMIS, RD, SCSS), but only in the old tax regime.
Premature withdrawal — penalty schedule
- Within 1 year: not allowed.
- 1 to 3 years: 2% of the deposit deducted as penalty.
- 3 to 5 years: 1% of the deposit deducted as penalty.
- Interest already paid out is not clawed back.
POMIS vs SCSS vs Fixed Deposit
Pick POMIS when you want guaranteed monthly cash flow on a deposit under ₹9 lakh, you're under 60 (and can't use SCSS), and you want sovereign-backed safety. Pick SCSS when you're 60+ and need a higher rate (8.20%) and a higher cap (₹30 lakh). Pick FD when you don't need monthly payouts, want flexible tenure (7 days to 10 years), or need rates from a bank you already use.
Rate verified 2026-05-28 against India Post small-savings notification dated 31 March 2026. Tax rules verified against §10, §80C, §80TTB of the Income Tax Act.
FAQs
POMIS is a small-savings scheme offered by India Post that pays a fixed monthly interest on a one-time deposit. You park a lump sum, the post office pays interest to you every month for 5 years, and at the end of the tenure your full deposit is returned. Backed by the Government of India, so the principal is safe.
The rate for Q1 FY 2026-27 (April-June 2026) is 7.40% per annum, paid monthly. Rates are reviewed quarterly by the Government of India and notified by the Ministry of Finance. The rate locked at the time of deposit applies for the full 5-year tenure — quarterly resets don't affect existing accounts.
Monthly income = (Deposit amount × annual rate) ÷ 12. At 7.40% on a ₹9 lakh deposit, monthly income = (900000 × 7.40 / 100) / 12 = ₹5,550 per month. The interest is credited automatically to a linked savings account on the date corresponding to your deposit date.
Minimum: ₹1,000 (in multiples of ₹1,000 thereafter). Maximum: ₹9 lakh for a single account; ₹15 lakh for a joint account (held by up to 3 adults). Joint-account holders share the income equally. Limits were last raised on 1 April 2023 — earlier caps were ₹4.5 lakh (single) and ₹9 lakh (joint).
Yes. The monthly interest is taxable as "Income from Other Sources" at your slab rate. No TDS is deducted by the post office — you self-declare in your ITR. POMIS does not qualify for §80C deduction. Senior citizens can use §80TTB to claim up to ₹50,000 of interest income (across all sources) as deduction in the old regime.
Yes, with a penalty: (1) within 1 year of deposit — no premature withdrawal allowed; (2) between 1 and 3 years — 2% of the deposit is deducted as penalty; (3) between 3 and 5 years — 1% of the deposit is deducted. The deposit is returned after the penalty is subtracted. Interest already paid out is not clawed back.
At the end of 5 years, your full deposit is returned. You can either close the account and take the money, or reinvest by opening a fresh POMIS account at the then-prevailing rate. The previous account doesn't auto-renew — you need to close and reopen.
POMIS: 7.40%, paid monthly, ₹9L single / ₹15L joint cap, 5-year tenure, open to all adults. SCSS: 8.20% (Q1 FY 26-27), paid quarterly, ₹30 lakh cap, 5-year tenure, only for ≥60 years (₹50K eligible from age 55 if VRS). FD: rate varies by bank, payout flexible, no cap, tenure 7 days to 10 years. POMIS is best when you want guaranteed monthly cash flow under ₹9L, are not yet 60 (and so cannot use SCSS), and want sovereign credit risk.
Yes, but the ₹9 lakh single-account limit is across all your POMIS accounts combined, not per account. The ₹15 lakh limit also includes your share of any joint accounts. So if you already have a single POMIS account with ₹6 lakh, you can only deposit another ₹3 lakh across new single accounts.
Walk into any post office with: filled application form (Form-A), valid ID + address proof (Aadhaar, PAN, voter ID, driving licence, passport), passport-size photographs, and the deposit amount in cash or cheque. The account becomes active the day the deposit clears. Online opening is available for existing post office customers through the India Post Payments Bank app, but most users still go in person.