Post Office Monthly Income Scheme (POMIS)
Calculate monthly interest payout on single and joint accounts under India Post Monthly Income Scheme.
Post Office Monthly Income Scheme (POMIS) Calculator
Calculate guaranteed monthly interest payouts, 5-year total cash flows, single vs joint account ceilings, zero TDS status, and statutory premature exit penalties under official National Savings Scheme rules.
Investment Parameters
Budget 2023 RulesMonthly Payout & Returns Summary
Sovereign GuaranteeStatutory Premature Exit & Deduction Guide
POMIS Payout Schedule & Ledger
Track every monthly interest credit across the 60-month tenureMonthly Income Options: POMIS vs Peers
2026 Sovereign Benchmarks| Feature | Post Office MIS (POMIS) | SCSS (Senior Citizens) | Bank Monthly Income FD | Annuity Plans (Insurance) |
|---|---|---|---|---|
| Current Interest Rate | 7.40% p.a. | 8.20% p.a. | 6.75% – 7.25% p.a. | 5.50% – 6.50% p.a. |
| Payout Frequency | Strictly Monthly | Quarterly (Apr/Jul/Oct/Jan) | Monthly or Quarterly | Monthly, Quarterly or Annual |
| Eligible Age | Any Resident Indian (10+ yrs) | 60+ Years (Senior Citizens) | All Ages | 30+ to 85 Years |
| Maximum Investment | ₹9 Lakh (Single) / ₹15 Lakh (Joint) | ₹30 Lakh per individual | No upper limit | No upper limit |
| Tenure | Fixed 5 Years | 5 Years (extendable by 3y) | 1 Year to 10 Years | Lifetime or Fixed Period |
| TDS at Source | Zero TDS (India Post) | 10% TDS above ₹50k/yr | 10% TDS above ₹40k/₹50k | TDS under Section 194DA/194 |
| Section 80C Benefit | No tax deduction | Yes (Up to ₹1.5 Lakh) | Only on 5-Year Tax Saver FDs | No (Annuity purchase taxable) |
| Sovereign Safety | 100% Govt of India Backed | 100% Govt of India Backed | DICGC insurance up to ₹5 Lakh | Insurer balance sheet |
Complete Guide to Post Office Monthly Income Scheme (POMIS)
Statutory Overview1. What is Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a sovereign savings instrument regulated by the Ministry of Finance, Government of India, under the Government Savings Promotion Act. Designed for retirees, conservative savers, and households seeking reliable monthly cash flow, POMIS provides guaranteed monthly interest credits on a fixed one-time capital deposit without any market volatility.
2. Enhanced Investment Limits (Union Budget 2023 Revision)
In the Union Budget 2023, the Ministry of Finance significantly revised the maximum investment ceilings for POMIS, effective April 1, 2023:
- Single Account: Increased from ₹4,50,000 to ₹9,00,000.
- Joint Account (up to 3 adults): Increased from ₹9,00,000 to ₹15,00,000.
- Joint Account Holding Rules: All joint account holders possess equal shares in the deposit. For instance, in a ₹15 Lakh joint account with 3 adults, each individual is deemed to have invested ₹5 Lakh toward their personal statutory limit.
3. Interest Rate and Monthly Calculation Formula
Interest on POMIS is set at 7.4% per annum and is paid on a simple interest basis every month. The statutory monthly payout formula is:
On a full ₹9,00,000 deposit at 7.4%, the subscriber receives exactly ₹5,550 every month (₹66,600 annually). Over the complete 5-year tenure (60 months), the total interest paid is ₹3,33,000, bringing total capital returned to ₹12,33,000.
4. Taxation and Zero TDS Advantage
Unlike commercial bank fixed deposits and senior citizen schemes, India Post does NOT deduct Tax Deducted at Source (TDS) under Section 194A on monthly POMIS payouts. Subscribers receive 100% of the gross interest into their savings accounts without deduction. However, this interest is fully taxable in the hands of the investor and must be declared under "Income from Other Sources" in their annual Income Tax Return (ITR) at their applicable marginal slab rate.
5. Reinvestment Strategy: Combining POMIS with Post Office RD
Investors who do not require monthly income for living expenses can set up an automatic standing instruction (ECS) to channel the monthly POMIS payout directly into a 5-Year Post Office Recurring Deposit (RD). Since India Post RD compounds quarterly at 6.7% p.a., this technique effectively transforms simple POMIS interest into a compounding wealth accumulation engine.
Frequently Asked Questions (FAQs)
POMIS RulesWho is eligible to open a Post Office MIS account?
Any resident Indian individual aged 18 years or above can open a POMIS account. A minor aged 10 years or older can open and operate an account in their own name. A guardian can open an account on behalf of a minor or a person of unsound mind. Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible to open fresh POMIS accounts.
Can an individual hold multiple POMIS accounts?
Yes, an individual can open multiple POMIS accounts across different post offices in India. However, the cumulative principal deposited across all single accounts and their proportional share in joint accounts cannot exceed the statutory limit of ₹9,00,000 per person.
What happens if the depositor passes away before maturity?
In the event of the depositor's demise before the 5-year maturity, the account is closed and the principal deposit, along with interest accrued up to the preceding month of closure, is paid to the registered nominee or legal heirs without any premature withdrawal penalty.
Can a POMIS account be transferred from one post office to another?
Yes, a POMIS account can be easily transferred free of cost from one post office branch to another anywhere across India by submitting Form SB-10(b) along with the original passbook at either the source or destination post office.
What happens if monthly interest is not withdrawn?
If the monthly interest is not claimed or linked to a Post Office Savings Account, it does not earn any extra interest in the POMIS account. Depositors should always link their savings account to ensure interest is automatically credited and starts earning interest immediately.