Post Office Monthly Income Scheme Calculator 2026
Invest a lump sum in POMIS and earn a guaranteed monthly payout for 5 years. At 7.4% p.a., ₹9 lakh earns ₹5,550 every month – sovereign-backed, zero market risk, no TDS.
Senior citizen? SCSS at 8.2% pays ₹600 more per month on the same ₹9 lakh. Compare → | Not sure if POMIS suits your situation? → Is POMIS Worth It in India?
Interest already credited monthly is yours to keep regardless of when you exit. Penalty applies only to the principal returned. Exit before 1 year is not permitted.
Cumulative interest credited to your account by end of each year. Principal returned in full at maturity.
Pre-tax monthly income comparison on your current investment. SCSS available for 60+ only. MF SWP returns not guaranteed.
Every calculator shows you the pre-tax number. Pick your slab to see what actually hits your bank account after income tax.
*MF SWP: LTCG 12.5% after 1 year. Returns not guaranteed. SCSS TDS applies above ₹50,000/year. All figures post-tax monthly.
Instead of letting monthly POMIS payouts sit in savings at 3.5%, reinvest them into a Post Office RD. See how your effective return jumps above the stated 7.4%.
The rate you lock today stays for 5 years. If RBI cuts POMIS rates next quarter, how much extra will you earn versus someone who waited?
Answer 3 questions. Get a direct recommendation – not a list of pros and cons.
1. How old are you?
What is POMIS? Complete Guide to Post Office Monthly Income Scheme 2026
The Post Office Monthly Income Scheme (POMIS), formally known as Post Office MIS, is a small savings scheme administered by the Department of Posts under the Ministry of Finance, Government of India. It is one of the oldest and most trusted guaranteed monthly income investments available to Indian residents, with a sovereign guarantee equivalent to any central government obligation. Unlike equity-linked or market-linked instruments, POMIS carries zero capital risk – your principal is guaranteed by the Government of India, not by a bank or NBFC.
The fundamental structure of POMIS is simple: you make a one-time lump-sum deposit, receive a fixed monthly interest credit for exactly 60 months, and collect your full principal at maturity. There is no compounding, no market linkage, no reinvestment of interest, and no variation in payout. The same rupee amount arrives in your linked post office savings account on the same date every month for 5 years. This predictability is precisely why POMIS appeals to retirees, senior citizens without SCSS eligibility, parents building a monthly income stream, and conservative investors who want their savings to generate a fixed “salary” without touching the corpus. Our guide on how much monthly income ₹1 crore generates in retirement shows why POMIS is central to most conservative retirement strategies.
How POMIS Monthly Interest is Calculated
On ₹9,00,000 at 7.4% → ₹9,00,000 × 7.4 ÷ 1200 = ₹5,550 per month
Total interest over 5 years → ₹5,550 × 60 = ₹3,33,000
Maturity value → ₹9,00,000 (principal returned in full, no compounding)
POMIS uses simple interest, not compound interest. The rate is applied to the original principal every month for the duration of the scheme. This is an important distinction: ₹9 lakh in POMIS at 7.4% earns exactly ₹3,33,000 over 5 years. Compare this to an FD that compounds quarterly: ₹9 lakh in a 7% FD compounded quarterly for 5 years generates approximately ₹3.72 lakh in interest – more than POMIS at a lower stated rate, purely due to compounding. This is why POMIS is best understood as a cash flow tool (predictable monthly income) rather than a wealth accumulation tool.
POMIS vs RD vs FD: Three Different Financial Jobs
A common confusion is treating POMIS, FD, and RD as interchangeable fixed income products. They serve fundamentally different financial purposes. POMIS is for investors who already have a corpus and want it to generate monthly cash flow without eroding the principal. A Recurring Deposit (RD) is the opposite: it is for investors who want to build a corpus through regular monthly deposits. A standard Fixed Deposit sits in between – it builds wealth through compounding and pays at maturity (or quarterly if opted).
If your goal is monthly income from a lump sum, POMIS is the correct instrument. If your goal is to build wealth through regular savings, an RD or SIP is correct. If your goal is to park a lump sum and let it compound, a fixed deposit is correct. Many experienced investors combine all three: keep living-expense corpus in POMIS, reinvest the monthly POMIS payout into an RD, and build long-term wealth through SIP.
Who Can Open a POMIS Account
- Resident Indian adults: Any individual holding Indian residency. NRIs cannot open new POMIS accounts (existing pre-FEMA accounts may continue until maturity).
- Joint accounts: Two or three adults jointly. All holders have equal rights to the monthly payout. Joint account limit is ₹15 lakh total.
- Minors via guardian: Parents or legal guardians can open on behalf of a minor. Account converts to adult on turning 18.
- Minors above 10 (own name): Can independently hold up to ₹3 lakh in their own POMIS account.
- Documents: Aadhaar, PAN (mandatory above ₹50,000), passport photo, and deposit amount (cheque, DD, or cash).
- Nomination: Mandatory at opening. Nominee receives balance plus unclaimed interest on the holder's death.
POMIS Interest Rate 2026: History, Investment Limits, and Account Rules
Rate Revision Cycle and the Rate Lock Advantage
The POMIS interest rate for 2025-26 is 7.4% per annum, unchanged since April 2023. The Ministry of Finance revises small savings rates quarterly (April, July, October, January) under the National Small Savings Fund framework. The rate-setting mechanism links POMIS yields to prevailing government securities (G-Sec) yields with a small positive spread, meaning POMIS rates broadly follow the RBI's monetary policy direction.
The most investor-friendly feature: the rate at account opening is locked for the full 5-year tenure. A revision in October 2026 will not affect accounts opened in April 2026. Those accounts continue earning 7.4% through to April 2031. This rate lock is one of the strongest structural arguments for opening POMIS in a high-rate environment, before an RBI rate-cut cycle begins eroding new account rates. RBI cut rates twice in early 2025 – accounts opened before those cuts are already benefiting from this protection.
| Period | POMIS Rate | Monthly Income on ₹9L | Monthly Income on ₹15L (Joint) |
|---|---|---|---|
| Apr 2023 – Present (2026) | 7.40% | ₹5,550 | ₹9,250 |
| Jan – Mar 2023 | 7.10% | ₹5,325 | ₹8,875 |
| Oct – Dec 2022 | 6.70% | ₹5,025 | ₹8,375 |
| Apr 2020 – Jun 2022 | 6.60% | ₹4,950 | ₹8,250 |
| Jan – Mar 2020 | 7.60% | ₹5,700 | ₹9,500 |
Investment Limits: Single, Joint, and Minor Accounts
| Account Type | Minimum | Maximum | Holders | Monthly Income at Max |
|---|---|---|---|---|
| Single (Adult) | ₹1,000 | ₹9,00,000 | 1 | ₹5,550 |
| Joint (2–3 Adults) | ₹1,000 | ₹15,00,000 | 2 or 3 | ₹9,250 |
| Minor (own name, 10+) | ₹1,000 | ₹3,00,000 | Self | ₹1,850 |
Investments must be in multiples of ₹1,000. These revised limits came into effect in April 2023, doubling the earlier single-account ceiling of ₹4.5 lakh. A frequently misunderstood rule: a person's proportionate share in a joint account is counted against their individual ₹9 lakh ceiling. In a 50-50 joint account of ₹15 lakh, each holder has used ₹7.5 lakh of their ₹9L ceiling. For maximum household allocation, each spouse opening separate individual accounts (₹9L each = ₹18L combined) captures more total capacity than a single joint account.
Premature Withdrawal Rules
| Holding Period | Exit Allowed? | Penalty | Example: ₹5L Account |
|---|---|---|---|
| Under 1 year | Not permitted | N/A | Cannot withdraw |
| 1 year to 3 years | Yes, with penalty | 2% of principal | Receive ₹4,90,000 |
| 3 years to 5 years | Yes, with penalty | 1% of principal | Receive ₹4,95,000 |
| At maturity (5 years) | Full return | Nil | Receive ₹5,00,000 |
All monthly interest already received is yours to keep regardless of exit timing. Penalty applies only to principal returned.
POMIS vs FD vs SCSS vs PPF vs SWP: Complete Monthly Income Comparison 2026
No single fixed income scheme is right for every investor. The optimal instrument depends on your age, tax bracket, income frequency need, liquidity requirement, and risk tolerance. Here is the most comprehensive comparison for Indian investors in 2026.
| Instrument | Rate 2026 | Monthly Income ₹9L | Tenure | Taxability | TDS | Risk | Who Can Use |
|---|---|---|---|---|---|---|---|
| POMIS | 7.40% | ₹5,550 | 5 yrs fixed | Slab | No TDS | Nil (Sovereign) | All residents |
| SCSS | 8.20% | ₹6,150* | 5+3 yrs | Slab | TDS >₹50K/yr | Nil (Sovereign) | 60+ only |
| SBI FD 5Y (monthly) | 6.50% | ₹4,875 | Flexible | Slab | TDS >₹40K/yr | Very Low | All |
| NSC | 7.70% | – (maturity only) | 5 yrs | 80C+slab | No TDS | Nil | All |
| PPF | 7.10% | – (partial after 7yr) | 15 yrs | Tax-free | No TDS | Nil | All |
| SSY | 8.20% | – (maturity only) | 21 yrs | Tax-free | No TDS | Nil | Girl child |
| MF SWP (equity) | 10–12%** | ₹7,500–9,000** | Open | LTCG 12.5% | No (LTCG) | Market risk | All |
*SCSS pays quarterly; converted to monthly equivalent. **MF SWP returns not guaranteed; historical averages used. Rates as of Q1 2026.
The Under-60 Monthly Income Gap: Why POMIS Has No Real Competitor
For investors under 60 who need guaranteed monthly income from a lump sum, the Indian market has a conspicuous gap. SCSS is unavailable until age 60. PPF and NSC do not pay monthly. Bank FDs offer lower rates (6.5–7.25% for 5Y) with TDS above ₹40,000/year of interest. Corporate deposits offer higher rates but carry credit risk.
This leaves POMIS as the only sovereign-guaranteed monthly income scheme available to Indian residents under 60. At 7.4% with no TDS and a government guarantee, it occupies a unique position in the fixed income landscape. The nearest equivalent – a government bond (G-Sec) – requires a Demat account, carries secondary market price risk, and is less accessible to retail investors.
POMIS vs SCSS: The 5-Year Total Gap in Rupees
| Investment | POMIS 7.4% (Monthly) | SCSS 8.2% (Quarterly) | 5-Year Difference |
|---|---|---|---|
| ₹5 Lakh | ₹3,083/mo | ₹3,417/mo | +₹20,000 total |
| ₹9 Lakh | ₹5,550/mo | ₹6,150/mo | +₹36,000 total |
| ₹15 Lakh (Joint) | ₹9,250/mo | ₹10,250/mo* | +₹60,000 total |
| ₹30 Lakh (SCSS max) | N/A (₹9L+₹15L split) | ₹20,500/mo | – |
*SCSS ₹15L monthly equivalent. SCSS TDS applicable above ₹50,000/year; POMIS has no TDS. Both taxable at slab rate.
For a complete analysis of when POMIS is the right choice given your income, age and tax bracket, read: Is POMIS Worth It in India?
POMIS Tax Treatment 2026: ITR Filing, Advance Tax, and Post-Tax Yield Analysis
POMIS interest is classified as “Income from Other Sources” (Section 56, Income Tax Act) and is fully taxable under both old and new tax regimes. No exemption. No Section 80C benefit. The post office does not deduct TDS – this means your full monthly income arrives in your account every month, but the compliance burden is entirely yours.
How to Declare POMIS Income in Your ITR
- Calculate FY interest: Monthly POMIS credit × 12 (or months credited if account opened mid-year). Example: ₹5,550 × 12 = ₹66,600/year on ₹9L.
- Declare under Schedule OS (Other Sources) in ITR-1 or ITR-2 as applicable.
- Pay advance tax if estimated annual tax liability exceeds ₹10,000: 15% by June 15, 45% by September 15, 75% by December 15, 100% by March 15.
- Form 15G/15H is irrelevant: These prevent bank TDS. Post office doesn't deduct TDS, so these forms serve no purpose for POMIS.
- No 80C deduction: POMIS deposit does not reduce your taxable income. No benefit under Section 80C, 80D, or any other deduction head.
Post-Tax Effective Yield by Slab (2026, New Tax Regime)
| Tax Slab | Effective Rate (+ 4% cess) | Post-Tax POMIS Yield | Monthly Income ₹9L Post-Tax |
|---|---|---|---|
| 0% (₹0–3L, or 87A rebate) | 0% | 7.40% | ₹5,550 |
| 5% (₹3L–7L) | 5.2% | 7.02% | ₹5,261 |
| 10% (₹7L–10L) | 10.4% | 6.63% | ₹4,972 |
| 15% (₹10L–12L) | 15.6% | 6.24% | ₹4,683 |
| 20% (₹12L–15L) | 20.8% | 5.86% | ₹4,395 |
| 30% (Above ₹15L) | 31.2% | 5.09% | ₹3,817 |
POMIS and the New Tax Regime: The Retiree Advantage
The new tax regime's ₹3L zero-tax threshold and Section 87A rebate up to ₹7L of total income means many retirees with only pension (or no pension) plus POMIS income effectively pay zero tax. A retired individual with ₹9L in POMIS generating ₹66,600/year in interest, combined with a modest pension or other income below ₹7L total, faces zero tax under the new regime. This makes POMIS's pre-tax yield of 7.4% the actual take-home yield. Check our Real Return Calculator to see how inflation erodes this further over 5 years – one of the best risk-free returns available anywhere in the Indian fixed income landscape for this investor profile.
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