Post Office Monthly Income Scheme (POMIS) 2026: Interest & benefits

In summary

Post Office Monthly Income Scheme is a government-backed savings option designed for investors seeking predictable monthly interest from a lump-sum deposit.

• The current interest rate is 7.40% p.a., payable monthly.
• The account matures five years after opening.
• Deposits start from Rs. 1,000 and must be made in multiples of Rs. 1,000.
• The maximum deposit is Rs. 9 lakh for single accounts.
• Joint accounts permit combined deposits up to Rs. 15 lakh.
• Premature closure is permitted after one year, subject to deductions.

POMIS can support regular expenses, but investors should consider taxation, liquidity, and alternative fixed-income options before opening an account. The scheme offers fixed monthly interest without exposure to market movements. However, interest is taxable and the investment receives no Section 80C deduction.

What is Post Office Monthly Income Scheme (POMIS)?

The Post Office Monthly Income Scheme is officially called the National Savings Monthly Income Account Scheme. India Post offers it under government small-savings programmes.

Investors deposit a lump sum and receive monthly interest throughout the five-year tenure. The principal becomes payable after the account reaches maturity.

At the current 7.40% p.a. rate, Rs. 9 lakh generates approximately Rs. 5,550 monthly. A Rs. 15 lakh joint deposit generates Rs. 9,250 monthly.

Interest does not compound within POMIS because it is distributed every month. Unclaimed monthly interest also earns no additional interest.

Bajaj Finance Fixed Deposits offer interest rates of up to 8.15% p.a., significantly higher than Post Office Time Deposits. You can start investing today and make your savings work harder. Book Your FD today!

Also Read: How to Change / Update Mobile Number in Post Office Account?

The Post Office Monthly Income Scheme (POMIS) is administered by the Department of Posts under the Ministry of Finance. It is designed for investors who want a steady monthly income from a lump-sum deposit.

Under POMIS, you deposit a lump sum when opening the account. Interest is calculated at the applicable rate and paid monthly into the linked Post Office Savings Account. At the end of the five-year tenure, the original principal is returned.

The key features of POMIS include:

• Interest rate: 7.40% p.a., payable monthly.
• Maximum single-account deposit: Rs. 9,00,000.
• Maximum joint-account deposit: Rs. 15,00,000.
• Tenure: 5 years or 60 months.
• Monthly payout: Up to Rs. 5,550 on a Rs. 9 lakh deposit and Rs. 9,250 on a Rs. 15 lakh joint deposit.
• Taxation: Interest is taxable according to the applicable income-tax provisions. 

Also Read: How to Withdraw Money from a Post Office Savings Account?

The interest rate stated in the source for POMIS is 7.40% per annum, with interest payable monthly. The rate is reviewed and notified by the Ministry of Finance periodically.

The monthly income depends on the amount deposited. Since the interest is paid out rather than compounded within the account, the monthly payout can be calculated using the applicable annual interest rate.

Benefits of Post Office Monthly Income Scheme (MIS)

• Regular income: Monthly interest can help investors manage recurring household expenses.
• Predictability: The fixed rate allows investors to estimate income for the complete tenure.
• Government backing: POMIS operates within the Central Government’s small-savings framework.
• Accessibility: Eligible applicants can open accounts through Post Office branches across India.
• Flexible ownership: Accounts may be opened individually, jointly, or for eligible minors.

• Nomination: Account holders can nominate a person to receive proceeds after their death.

  
  

Additional read: Best saving scheme for senior citizens

Who should invest in POMIS?

POMIS may suit investors who prioritise monthly income, capital protection, and predictable returns over long-term compounding. Retirees may use the interest to support recurring expenses. Other conservative investors may use it to supplement existing income. Investors seeking capital growth should compare POMIS with cumulative products because monthly withdrawals reduce opportunities for compounding.

Post Office monthly income scheme interest rates 2026

The POMIS rate remains 7.40% p.a. for July to September 2026. The Ministry of Finance reviews small-savings rates every quarter. The rate represents annual interest, although payments occur monthly. It should not be described as interest compounded every month.

Current interest rates on Post Office Monthly Income Scheme(POMIS)

The government retained the 7.40% p.a. rate for the July to September 2026 quarter.

Investors should confirm the applicable quarterly rate before opening an account because rates may change for new deposits.

Post Office Monthly Income Scheme for senior citizens

Post Office Monthly Income Scheme for senior citizens

Senior citizens can use the Post Office Monthly Income Scheme for regular monthly income. However, the scheme provides no age-based additional interest.

Key points include:

• The interest rate is identical for senior citizens and other eligible investors.
• Interest is payable monthly after completing one month from the account-opening date.
• Investing Rs. 1,00,000 at 7.40% p.a. provides approximately Rs. 617 monthly.
• A Rs. 9 lakh single account can provide approximately Rs. 5,550 monthly.
• A Rs. 15 lakh joint account can generate approximately Rs. 9,250 monthly for all account holders collectively.
• The principal is repaid when the account completes its five-year tenure.
• Premature closure is unavailable during the first year after opening the account.
• Closure between one and three years attracts a deduction equal to 2% of the principal.
• Closure between three and five years attracts a deduction equal to 1% of the principal.
• POMIS investments do not qualify for a deduction under Section 80C.
• Monthly interest is taxable according to the account holder’s applicable income-tax provisions.
• Interest rates undergo quarterly government review, so investors should confirm current rates before opening an account.

Documentation required to open Post Office Monthly Income Scheme

Applicants generally need the following documents:

• Completed account-opening form
• PAN
• Aadhaar or another accepted identity document
• Accepted address proof
• Recent passport-size photographs
• Nomination details

• Initial deposit through an accepted payment method

  
  

The Post Office may request additional documents depending on KYC requirements and the applicant’s circumstances.

How to Open a POMIS Account?

Steps to open a POMIS account

1. Visit a Post Office branch offering savings-account services.
2. Request and complete the prescribed account-opening and KYC forms.
3. Choose a single, joint, minor, or guardian-operated account.
4. Provide PAN, identity proof, address proof, photographs, and nominee information.
5. Deposit an eligible amount in multiples of Rs. 1,000.

6. Review the account details and retain the issued passbook.

   
   

A Post Office savings account can make monthly interest credits and account management more convenient.

Also read: What is Post Office Tax Saving Scheme

Eligibility criteria for opening Post Office Monthly Income Scheme account:

• A resident Indian adult may open a single account.
• Up to three eligible adults may open a joint account.
• A guardian may open an account for a minor or an eligible dependent person.
• A minor aged ten years or above may open an account independently.

• Non-resident Indians cannot open new POMIS accounts.

  
  

The government’s myScheme portal provides current eligibility, benefits, and application information.

Early withdrawal penalty POMIS

The Post Office Monthly Income Scheme matures five years after opening. Premature closure is permitted after one year, subject to applicable deductions.

Key points to remember include:

• POMIS does not permit partial withdrawals during the five-year tenure.
• The applicable deduction is calculated on the principal, not the interest earned.
• The remaining principal is paid to the account holder after deducting the applicable amount.
• The account holder must submit the prescribed closure form and passbook at the concerned post office.
• The deductions apply equally to individual and joint POMIS accounts.

These premature-closure provisions are listed under the government’s National Savings Monthly Income Account Scheme.

Also read: What is Small Saving Scheme

POMIS premature withdrawal rules

• Within one year: Premature closure is not permitted.
• After one year but before three years: The Post Office deducts 2% from the principal.
• After three years but before five years: The Post Office deducts 1% from the principal.

• At five years: The account matures, and the principal becomes payable without a premature-closure deduction.

  
  

Account holders must submit the prescribed closure application and passbook at the concerned Post Office.

Post Office Monthly Income Scheme (POMIS) Vs other Saving Schemes of the Post Office

Each scheme has different eligibility, taxation, tenure, and withdrawal conditions. Therefore, rates alone should not determine the investment decision. Investors may also compare POMIS with a Bajaj Finance Fixed Deposit. It offers flexible tenures and several payout frequencies. From 1 May 2026, monthly payout rates reach 7.16% p.a. below age 60 and 7.49% p.a. for senior citizens.

Additional read: Tax Saving Schemes for Senior Citizens

Conclusion

Post Office Monthly Income Scheme offers government-backed capital protection, fixed monthly interest, and a defined five-year tenure. It may suit investors requiring predictable income.

However, investors should assess taxable interest, deposit limits, and premature-closure deductions. They should also compare monthly income with possible cumulative growth elsewhere.

Calculate your expected investment returns with the help of our Fixed Deposit and Sukanya Samriddhi Yojana calculators.