Post Office MIS (POMIS) 2026: Interest Rate, Calculator & Rules
POMIS interest rate is 7.4% for April–June 2026, paid monthly. Single account cap ₹9 lakh, joint ₹15 lakh. See monthly payouts, premature rules, and how it stacks up against FD and SCSS.
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Post office monthly income scheme (POMIS) 2026: interest rate, calculator and rules
POMIS is one of those schemes that does exactly what it says: you deposit a lump sum at a post office, and they pay you interest every month for five years. Government-backed, no market exposure, and the money arrives in your linked savings account whether you remember to check or not.
The rate right now is 7.4% per annum for April–June 2026. Below is how that translates into actual rupees, what the deposit limits are, what happens if you need the money early, and how the tax works — including the part most people miss.
What POMIS actually is
POMIS (Post Office Monthly Income Scheme) is a small-savings scheme run by India Post. You put in a lump sum, they pay you monthly interest for five years, and at the end you get your principal back intact.
It was built for people who come into a lump sum — retirement proceeds, a property sale, an inheritance — and want regular income without putting money into equity or chasing credit risk. The key difference from a standard FD is the payout timing: a regular bank FD compounds interest until maturity unless you explicitly set up a monthly interest sweep. POMIS just pays you every month, automatically, into your linked post office savings account.
The scheme is available at all post offices. A few banks also offer it at select branches.
Current POMIS interest rate (April–June 2026)
The Ministry of Finance reviews all small-savings scheme rates every quarter. For Q1 FY 2026-27 (April–June 2026), the POMIS rate is 7.4% per annum, paid monthly.
The rate hasn't moved since the last revision. The next review date is 30 June 2026.
Monthly payout formula: (Principal × 7.4%) ÷ 12
For context: 5-year PSU bank FDs are generally paying 6.5–6.8% right now. POMIS beats them by 60–90 basis points on the same tenure, with equivalent government-backed safety.
Deposit limits
| Account type | Minimum | Maximum |
|---|---|---|
| Single | ₹1,000 | ₹9,00,000 |
| Joint (2 or 3 people) | ₹1,000 | ₹15,00,000 |
A few points that catch people off guard:
- Multiple single accounts are allowed, but the total across all of them cannot exceed ₹9 lakh.
- In a joint account, each co-holder is treated as having an equal share. So a ₹15 lakh joint account between two people attributes ₹7.5 lakh to each — within the individual ₹9 lakh cap.
- Deposits must be in multiples of ₹1,000.
- Minors can hold accounts through a guardian, and the ₹9 lakh limit applies in the minor's name.
These limits were doubled in 2023 (previously ₹4.5 lakh single / ₹9 lakh joint) and haven't changed since.
Monthly payout: worked examples
₹9 lakh single account
Principal: ₹9,00,000 at 7.4% p.a. Monthly payout: ₹9,00,000 × 7.4% ÷ 12 = ₹5,550/month
Over 60 months: ₹3,33,000 in total interest. Principal returned at maturity: ₹9,00,000.
₹15 lakh joint account
Principal: ₹15,00,000 at 7.4% p.a. Monthly payout: ₹15,00,000 × 7.4% ÷ 12 = ₹9,250/month
Over 60 months: ₹5,55,000 in total interest. Principal returned at maturity: ₹15,00,000.
A retired couple with ₹15 lakh in a joint POMIS account gets ₹9,250/month landing in their savings account without doing anything. That won't replace a salary, but alongside a pension it means they're not eroding their corpus every month just to meet expenses.
To model your own deposit, use the FD calculator with 7.4% and monthly payout mode.
Tenure and renewal
The tenure is fixed at five years from the date of opening. At maturity, you either withdraw the principal or reinvest for another five years at whatever the prevailing rate is on that date. There is no auto-renewal — you have to show up and actively choose.
The rate is not locked in for life. If rates rise before your renewal date, you benefit. If they fall, you're stuck with the lower rate for the next term.
Premature withdrawal rules
| Timing | Penalty |
|---|---|
| Before 1 year | Not permitted |
| After 1 year, before 3 years | 2% deducted from principal |
| After 3 years, before maturity | 1% deducted from principal |
In practice: close a ₹9 lakh account at year 2 and you lose ₹18,000. Close it at year 4 and you lose ₹9,000. Monthly interest already received is not clawed back — only the principal takes the hit.
The penalty structure is actually less punishing than many bank FDs, which sometimes deduct from the interest earned on top of the principal penalty. POMIS only touches the principal.
Taxation
The deposit itself carries no tax benefit — there's no Section 80C deduction on POMIS investment, unlike PPF or tax-saving FDs.
The monthly interest is taxable at your slab rate, added to income under "Income from Other Sources." If you're in the 30% bracket, you pay 30% on the interest received each year.
The part that trips people up: post offices don't deduct TDS on POMIS interest. That is not the same as tax-free. You must declare the interest in your ITR annually. Post offices file this data with the income tax department, so unreported POMIS income can and does show up in scrutiny notices.
If your total income stays below the basic exemption limit (₹3 lakh under the old regime or ₹4 lakh under the new regime for FY 2026-27), there's nothing to pay. For anyone earning above that threshold, every rupee of POMIS interest counts.
POMIS vs FD vs SCSS
| Feature | POMIS | Bank FD (5-yr PSU) | SCSS |
|---|---|---|---|
| Interest rate | 7.4% | 6.5–6.8% | 8.2% |
| Payout frequency | Monthly | Quarterly or maturity | Quarterly |
| Principal protection | Government-backed | Up to ₹5L (DICGC) | Government-backed |
| Max investment | ₹9L single / ₹15L joint | No cap | ₹30L per individual |
| 80C deduction | No | No (standard FD) | Yes |
| TDS | No TDS (but interest taxable) | Yes above ₹40K–₹50K | Yes above ₹1L for 60+ |
| Premature closure | After 1 yr, with penalty | With penalty | After 1 yr, with penalty |
| Who can invest | All residents | All residents | 60+ only (or 55+ on VRS) |
If you're 60 or older and SCSS-eligible, SCSS wins on every metric that matters: 8.2% vs 7.4%, an 80C deduction on the deposit, and a ₹30 lakh cap against POMIS's ₹9 lakh single-account limit. POMIS earns its place for people under 60 who want monthly income, or for anyone who has already maxed the ₹30 lakh SCSS cap and still has money to place.
Tax-saving bank FDs give you the 80C deduction that POMIS doesn't, but they pay less (6.5–6.8%) and the monthly payout requires a sweep setup that isn't always seamless.
See also: best government savings schemes in India 2026 and the SCSS guide.
How to open a POMIS account
Walk into any India Post branch with:
- Aadhaar and PAN
- One passport-size photograph
- The deposit amount (cash or cheque)
- A post office savings account for monthly interest credit (you can open this the same day if you don't have one)
Cash deposits are processed same-day. Cheque deposits go active once the cheque clears. For joint accounts, all co-holders either attend together or one provides a signed and notarised authorisation for the absent co-holder.
POMIS for NRIs
NRIs cannot open new POMIS accounts. If you become an NRI while an existing account is running, you can hold it through to maturity, but no fresh deposits are allowed and you cannot open additional accounts.
Frequently asked questions
What is the current POMIS interest rate in 2026?
7.4% per annum for April–June 2026 (Q1 FY 2026-27), paid monthly. The Ministry of Finance reviews this each quarter; the next review is 30 June 2026. At this rate, ₹9 lakh earns ₹5,550/month and ₹15 lakh in a joint account earns ₹9,250/month.
What is the maximum deposit in POMIS?
₹9 lakh for a single account, ₹15 lakh for a joint account with 2–3 holders. If you hold multiple single accounts, the total across all of them cannot exceed ₹9 lakh. These limits were revised up from ₹4.5 lakh and ₹9 lakh respectively in 2023.
Is POMIS interest taxable?
Yes, fully taxable at your slab rate as "Income from Other Sources." Post offices don't deduct TDS, but that doesn't mean the income is exempt. You have to declare it in your ITR every year. Post offices share this data with the income tax department.
Can I withdraw POMIS before 5 years?
Not in the first year — the account is locked. After year one, premature closure costs 2% of the principal if you close before year three, and 1% if you close between years three and five. The monthly interest already paid to you stays with you.
How does POMIS compare to a bank FD?
POMIS pays 7.4% versus 6.5–6.8% from 5-year PSU FDs, with the same effective safety (government-backed versus DICGC insurance up to ₹5 lakh). Bank FDs have no investment cap and can be opened online. Up to the POMIS limits, the rate advantage is real.
Is POMIS better than SCSS for retired individuals?
No. SCSS pays 8.2% quarterly, qualifies for an 80C deduction, and allows up to ₹30 lakh. For anyone 60 or older, SCSS should be the first call. POMIS makes sense once the SCSS cap is filled, or for those under 60 who want monthly rather than quarterly income.
Interest rates verified for April–June 2026. Check the current quarter's rate at indiapost.gov.in before investing. This is not personalised financial advice.