Post Office Monthly Income Scheme (POMIS): Interest Rate, Eligibility, Deposit Limits & Withdrawal Rules

The Post Office Monthly Income Scheme (POMIS) is a government backed savings scheme offered through the India Post that allows investors to deposit a lump sum amount and earn a fixed monthly income. It is designed for individuals seeking stable and low risk returns, making it particularly suitable for retirees or conservative investors who prefer predictable cash flow instead of market-linked investments.

The POMIS offers an interest rate is 7.40% per annum, which is payable monthly, with an investment tenure of 5 years. The maximum amount that an investors can deposit is Rs. 9 lakh for a single account and Rs. 15 lakh for a joint account.

Post Office Monthly Interest Scheme - Key Highlights

Particulars	Details
Scheme Type	Government-backed savings scheme
Interest Rate	7.40% per annum
Tenure	5 years
Maximum Deposit	Rs. 9 lakh (Single Account) & Rs. 15 lakh (Joint Account)

What is Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme (POMIS) is a government backed savings scheme offered by the Indian Post that allows investors to earns a fixed monthly interest income on a on time lump sum deposit. It is a low risk investment option specifically designed for individuals preferring stable returns. 

Post Office Monthly Income Scheme (POMIS) allows investors to earn interest on their deposits which is credit on a monthly basis automatically to the Post Office Savings Account. POIMS is commonly used by retirees, conservative investors, and individuals looking for passive monthly income from their savings.

Post Office Monthly Income Scheme Interest Rate 2026

The Post Office Monthly Income Scheme (POMIS) interest rate is notified every quarter by the Government of India for small savings schemes offered through India Post. Once you open a POMIS account, the interest rate remains fixed for the entire 5-year tenure, even if the government revises rates in future quarters.

The Post Office Monthly Income Scheme (POMIS) interest rate for FY 2025-26 is fixed at 7.4% for the April-June 2026 quarter, where interest is payable monthly. 

POMIS Interest Rate History

Key Features of POMIS

Eligibility to Open a POMIS Account

Only resident indiciduals can open a Post Office Monthly Income Scheme (POMIS) account. However, minors can also open an account through a guardian. The scheme also allows individual od joint ownership with majority conversion rule. Post Office Monthly Income Scheme (POMIS) does not allows NRIs to open an account. 

Deposit Limits Under Post Office Monthly Income Scheme

The Post Office Monthly Income Scheme (POMIS) allows investors a maximum investment limit of up to Rs. 9 lakh for single account holders and Rs. 15 lakh for join account holders. The minimum invesment required is Rs. 1,000. 

Monthly Income from POMIS

The Post Office Monthly Income Scheme (POMIS) provides fixed monthly interest based on the amount invested and the prevailing interest rate (currently 7.4% per annum). Since the interest is paid every month, the annual interest is divided into 12 monthly payouts, giving investors a predictable income stream.

Post Office Monthly Income Scheme Calculator

Benefits of Post Office Monthly Income Scheme

• Capital protection: Your money is safe until maturity as this is a government-backed scheme. 
• Tenure: The lock-in period for Post Office MIS is 5 years. You can withdraw the invested amount when the scheme matures or reinvest it. 
• Affordable deposit amount: You can start with a nominal initial investment of Rs.1,000. As per your affordability, you can invest in multiples of this amount. Keep note that the maximum limit on POMIS is Rs 9 lakhs and for jointly Rs 15 lakhs. 
• Tax-efficiency: Your investment is not covered under Section 80C; TDS provisions are applicable similar to interest on deposits. 
• Payout: You will receive the payout one month after making the first investment, not at the beginning of every month. 
• Multiple Account Ownership: You can open more than one account in your name. But the total deposit amount cannot exceed Rs. 9 lakhs in all of them together. 
• Joint account: You can open a joint account with 2 or 3 people. In this case, an aggregate sum of up to Rs.15 lakhs can be invested in this account.
• Fund movement: The investor can move the funds to a recurring deposit (RD) account, which is a feature the Post Office has added recently. It is initiated to earn more interest and returns.
• Nominee: The investor can nominate a beneficiary (a family member) so that they can claim the benefits and corpus if the investor passes away during the account’s term. 
• Reinvestment: You may reinvest the corpus post maturity in the same scheme for another block of 5 years to continue earning benefits.

Taxation of POMIS

Investments made under the Post Office Monthly Income Scheme (POMIS) do not qualify for a tax deduction under Section 80C of the Income-tax Act, 1961. This means the principal amount invested in the scheme cannot be claimed as a deduction while filing your income tax return.

However, the monthly interest earned from POMIS is fully taxable. The interest income is added to your total taxable income and taxed according to your applicable income tax slab rate. Since the interest is paid out every month, investors should include the total interest received during the financial year while calculating their taxable income.

How to Open a POMIS Account?

Opening a POMIS account is not as tedious as you think. Instead of imagining long queues and even longer paperwork, please take a look at the step-by-step procedure. 

• Open a post office savings account, if you haven’t already.
• Collect a POMIS application form from your Post Office.
• Submit the duly filled form along with a photocopy of your ID and residential proofs and 2 passport-size photos at the Post Office. Do carry the originals for verification.
• Get the signatures of your witness or nominee(s) on the form.
• Make the initial deposit via cash or cheque. In the case of a post-dated cheque, the date on the cheque will be the account opening date.
• Once the processing is done, the executive at Post Office will provide you with the details of your newly opened account.

Consequences of Early Withdrawal

Note: Account can be prematurely closed by submitting a prescribed application form with a pass book at the concerned Post Office. ​​

Is POMIS Suitable for Senior Citizens?

The Post Office Monthly Income Scheme (POMIS) can be a suitable investment option for senior citizens and retirees who want a stable and predictable monthly income from their savings. Since the scheme is backed by the Government of India and offered through India Post, it is considered a low-risk investment, making it attractive for individuals who prefer capital safety and regular cash flow after retirement.

However, in many cases, the Senior Citizens Savings Scheme (SCSS) may offer a higher interest rate and larger investment limits, making it more attractive for senior citizens seeking higher returns. That said, POMIS can still work well for retirees who want fixed monthly income within the scheme’s deposit limits, or who wish to diversify their retirement savings across multiple government-backed schemes.

Post Office MIS With Other Monthly Income Plans

Post Office Monthly Income Scheme - Summary

The following image shows the summary of key information about the post office monthly income scheme.

Final Word

Thus, the post office monthly income scheme offers stable returns for the investors. Taxpayers with a low risk appettite can opt for POMIS scheme.