Post Office Monthly Income Scheme (POMIS) 2026
Fixed monthly income for five years from a one-time deposit.
Rates for July–September 2026 (Q2 FY 2026-27) · Updated 27 September 2026What is Post Office Monthly Income Scheme (POMIS)?
The National Savings Monthly Income Account, commonly called POMIS, lets you invest a lump sum and receive interest every month for five years. It suits retirees, homemakers and anyone who wants a predictable monthly payout without market risk.
POMIS at a glance
| Particular | Details |
|---|---|
| Current interest rate | 7.4% p.a. (Jul–Sep 2026), locked for 5 years |
| Payout | Monthly, credited to post-office savings account |
| Tenure | 5 years |
| Limit | ₹9 lakh single; ₹15 lakh joint (up to 3 adults) |
| Premature closure | After 1 year with deduction |
| Monthly income on max | ₹5,550 (single) / ₹9,250 (joint) |
Government-notified terms for July–September 2026 (Q2 FY 2026-27). Verify the latest notification before investing.
Features & benefits of POMIS
Fixed payout every month for 5 years.
Up to 3 adults; higher ₹15 lakh ceiling.
Monthly interest can be auto-credited into a post-office RD.
Nominee facility and post-office transfer available.
Eligibility — who can invest?
- Resident Indian adults (single or joint up to 3).
- Guardian for minor / person of unsound mind; minor above 10 in own name.
- NRIs cannot open.
How does POMIS work?
- Deposit a lump sum once.
- Interest is paid at the end of every month from the date of opening.
- After 5 years, the principal is returned.
- Unclaimed monthly interest does not earn extra interest — link a POSA.
Tax benefits of POMIS
| Stage | Tax treatment |
|---|---|
| Investment | No Section 80C / 123 deduction |
| Interest | Taxable at slab rate |
| TDS | Not deducted — declare in ITR |
Section 80C of the Income-tax Act, 1961 is Section 123 of the Income-tax Act, 2025 from tax year 2026-27. Deductions apply only in the old tax regime.
Withdrawal, premature closure & maturity rules
| Situation | Rule |
|---|---|
| Before 1 year | Not allowed |
| 1 to 3 years | 2% of principal deducted |
| 3 to 5 years | 1% of principal deducted |
| Death | Nominee receives the amount; interest till the preceding month |
At maturity
| Option | What happens |
|---|---|
| After 5 years | Principal refunded; reinvest in a fresh MIS at the then-prevailing rate |
POMIS returns — worked examples
| Deposit | Monthly income @7.4% | Yearly income | 5-year income |
|---|---|---|---|
| ₹1,00,000 | ₹617 | ₹7,400 | ₹37,000 |
| ₹5,00,000 | ₹3,083 | ₹37,000 | ₹1,85,000 |
| ₹9,00,000 (single max) | ₹5,550 | ₹66,600 | ₹3,33,000 |
| ₹15,00,000 (joint max) | ₹9,250 | ₹1,11,000 | ₹5,55,000 |
Simple interest, paid monthly, before tax.
POMIS calculator
How to open / invest in POMIS
- Open a post-office savings account (mandatory for credit).
- Fill the MIS account opening form.
- Submit KYC and deposit amount.
- Link to POSA for monthly credit.
Documents required
- Aadhaar
- PAN
- Photographs
- Post-office savings account details
Important forms
| Form | Purpose |
|---|---|
| Account opening form | MIS opening |
| Closure form | Premature / maturity closure |
Advantages & limitations
- Monthly income
- Government backing
- Joint limit ₹15 lakh
- Rate locked for 5 years
- Taxable interest
- No compounding
- Early-exit penalty
- Deposit ceilings
Mistakes to avoid
- Not linking a POSA — payouts stay idle
- Ignoring tax on interest
- Breaking in year 1–3 and losing 2%
POMIS vs other saving schemes
| Scheme | Rate | Tenure | Minimum | Tax |
|---|---|---|---|---|
| POMIS | 7.4% p.a. | 5 years | ₹1,000 | Taxable — no deduction |
| SCSS | 8.2% p.a. | 5 years, extendable in 3-year blocks | ₹1,000 | EET — deduction on deposit, interest taxable |
| PO RD | 6.7% p.a. | 5 years (extendable by 5 years) | ₹100 per month | Interest taxable |
| PO TD | 6.9% – 7.5% p.a. | 1, 2, 3 or 5 years | ₹1,000 | 5-year TD qualifies for deduction; interest taxable |
| POSA | 4.0% p.a. | No fixed tenure | ₹500 opening & minimum balance | Interest exempt up to ₹3,500 (₹7,000 joint) |
Frequently asked questions
What is the POMIS limit?
₹9 lakh single and ₹15 lakh joint.
Is POMIS tax-free?
No.
Can I open more than one MIS?
Yes, within the overall limit.
Can monthly interest be reinvested?
Yes — auto-credit to a post-office RD is allowed.
Information is for education and comparison. Interest rates are notified by the Government every quarter and scheme rules can change — confirm with India Post, your bank, EPFO or PFRDA before investing. FinancePortal is not a financial or tax adviser.