Post Office Monthly Income Scheme - Interest Rate 2026, Benefits & How to Open POMIS Account?

Post Office Monthly Income Scheme (POMIS) is a scheme where you invest a lump-sum amount and earn a fixed interest every month, i.e., 7.40% per annum. This secure savings investment option is for those who do not prefer high-risk investment avenues. You can invest in this from any Indian Post office near you.

POMIS Interest Rate Update

The Post Office Monthly Savings Scheme (POMIS) interest rate for Q4 (January-March) of FY 2025-26 has been kept unchanged at 7.4% per annum. 

What is Post Office Monthly Income Scheme?

The Indian Post Office offers a “Savings Monthly Income Account” scheme (MIS/POMIS). It is low-risk and provides monthly interest as a passive income source. 

Under this scheme, you can deposit a specified lump sum amount and receive monthly interest at a specified rate. The interest can be drawn through an auto credit facility into your Post Office Savings Account or through ECS into the depositor's bank account.

You can invest up to Rs. 9 lakh individually or Rs. 15 lakh jointly, and the investment period is 5 years. The interest rate for FY 2025-26 is 7.40% per annum, payable monthly.

Eligibility Criteria to Open a POMIS Account

• Only a resident Indian can open a POMIS account. 
• NRIs cannot enjoy the benefits of this scheme. 
• Any adult can open a POMIS account. 
• You can open an account on behalf of a minor who is aged 10 years and above. They can avail the fund when they become 18 years old 
• A minor, after attaining majority, has to apply for conversion of the account in his name.

In a joint account, all the joint holders shall have equal share in investment. Limits for accounts opened on behalf of a minor as guardian shall be separate. Deposits/shares in all MIS accounts opened by an individual shall not exceed Rs.9 lakh.

POMIS Interest Rate 2026

The Post Office Monthly Income Scheme (POMIS) provides interest at the rate of 7.4% per annum which is paid monthly for 2025-26. 

The following table gives the historical data of the POMIS interest rate: 

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.

Post Office Monthly Income Scheme Calculator

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. ​​

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.