Educational Purpose Only: The POMIS interest rate is set by the Government of India and revised quarterly. Verify the current rate before investing.
How it works
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme that pays a fixed monthly interest income on a one-time lump-sum deposit. It is ideal for retirees and risk-averse investors who want a guaranteed, regular income without exposure to market fluctuations.
The deposit limit is ₹9 lakh for a single account and ₹15 lakh for a joint account. The scheme has a fixed 5-year tenure, after which the principal is fully returned. Interest is paid monthly directly to your linked savings account. The current interest rate is 7.4% per annum (subject to quarterly government review).
Who should invest in POMIS?
Retirees
POMIS provides a guaranteed monthly income stream to supplement pension. The government backing eliminates credit risk, making it safer than most fixed-income alternatives.
Risk-Averse Investors
For investors who cannot afford any capital loss, POMIS offers capital protection with a predictable monthly payout — no market exposure at all.
Regular Income Seekers
Unlike FDs that pay interest quarterly or at maturity, POMIS pays monthly — ideal for covering regular household expenses.
Senior Citizens
Senior citizens can combine POMIS with SCSS (Senior Citizen Savings Scheme) to maximise tax-efficient monthly income from government-backed instruments.
Frequently Asked Questions
What is the maximum investment allowed in POMIS?
The deposit limit is ₹9 lakh for a single account and ₹15 lakh for a joint account. A person can hold only one single account, but can have one single and one joint account simultaneously — giving a maximum personal investment of up to ₹9 lakh + a share of ₹15 lakh in the joint account.
What is the current POMIS interest rate?
The current POMIS interest rate is 7.4% per annum, paid monthly. The rate is reviewed quarterly by the Government of India and linked to government bond yields. Always verify the latest rate at your nearest post office or the India Post website before investing.
Can I withdraw POMIS before 5 years?
Yes, premature closure is allowed after 1 year. If you close between 1–3 years, 2% of the principal is deducted. If you close between 3–5 years, 1% is deducted. No premature withdrawal is allowed within the first year.
Is POMIS interest taxable?
Yes. Interest income from POMIS is fully taxable as 'Income from Other Sources' at your applicable income tax slab rate. There is no TDS deduction by the post office — it is your responsibility to include this income in your ITR. Senior citizens can also claim deduction under Section 80TTB.
What happens to POMIS after 5 years?
After the 5-year maturity, you receive your original principal back in full. You can reinvest it in a new POMIS account for another 5-year term. The principal returned is not taxable — only the interest income during the tenure was taxable.
Related Calculators
This calculator is for educational and illustrative purposes only. The POMIS interest rate is set by the Government of India and revised quarterly. Check the latest rate at your nearest post office or on the India Post website before investing.