What is the current interest rate of POMIS in 2026?

For the current financial quarter, the interest rate for the Post Office Monthly Income Scheme (POMIS) is fixed at 7.4% per annum, payable monthly. The government revises these rates quarterly, but once you open an account, your rate is locked in for the entire 5-year tenure.

What is the maximum investment limit for POMIS?

The government recently hiked the deposit limits. You can now invest a maximum of ₹9 Lakhs in a single account. If you open a joint account (which can have up to 3 adult members), the maximum deposit limit is capped at ₹15 Lakhs.

Is the POMIS deposit eligible for Section 80C tax benefits?

No. Unlike the Senior Citizen Savings Scheme (SCSS) or the National Savings Certificate (NSC), deposits made into the Post Office Monthly Income Scheme do NOT qualify for any tax deductions under Section 80C of the Income Tax Act.

Is the monthly interest from POMIS tax-free?

No, the monthly interest earned is fully taxable as per your applicable income tax slab. However, importantly, the Post Office does NOT deduct TDS (Tax Deducted at Source) on POMIS interest. It is entirely the taxpayer's responsibility to declare this interest income while filing their ITR.

What are the premature withdrawal penalties for POMIS?

Your principal is strictly locked for the first 1 year. If you prematurely close the account between 1 and 3 years, a hefty 2% deduction is made from the principal amount. If you close it between 3 and 5 years, the deduction drops to 1%. It is heavily advised not to break POMIS before maturity.

Can NRIs invest in the Post Office Monthly Income Scheme?

No, Non-Resident Indians (NRIs) are strictly not eligible to open a POMIS account. The scheme is exclusively available to resident Indians. If your residential status changes to NRI during the scheme's tenure, you must immediately close the account.

Can I transfer my POMIS account from one post office to another?

Yes, you can easily transfer your POMIS account from one post office branch to any other post office branch across India. This is completely free of charge and makes it convenient if you relocate.

What happens if I don't withdraw my monthly interest?

If you fail to claim or withdraw your monthly interest, it will simply lie idle in your linked savings account. It does NOT earn any additional compound interest. Therefore, it is highly recommended to set up an auto-transfer or systematic investment plan (SIP) to deploy those funds elsewhere.

POMIS Calculator India 2026 - Post Office Monthly Income Scheme

What is the POMIS? The Post Office Monthly Income Scheme (POMIS) provides guaranteed, regular monthly income to Indian investors. Backed totally by the Government of India, it is considered one of the safest investments prioritizing capital protection and consistent cashflow over aggressive growth.

With the recent Union Budget vastly extending the deposit limits, POMIS has become highly lucrative for retirees. Use our POMIS Calculator to predict your exact monthly pension.

How Does the POMIS Calculator Work?

The Post Office Monthly Income Scheme offers Simple Interest, not compound interest. Therefore, your principal amount deposited on Day 1 does not grow. It stays identical, and the bank credits the 'interest' directly into your associated savings account every single month.

Monthly Payout = (P × R) / (100 × 12)

Where:

• P = Principal deposit
• R = Annual Interest Rate (Currently 7.4%)
• Example: (9,00,000 × 7.4) / 1200 = ₹5,550 per month

Strict Deposit Limits: An individual can open a 'Single' account up to ₹9 Lakhs (recently hiked from ₹4.5 Lakhs). A 'Joint' account (up to 3 adults) can accept up to ₹15 Lakhs (hiked from ₹9 Lakhs).
Monthly Payouts Only: Interest is deposited exclusively on a monthly basis. You cannot opt for quarterly or annual payouts.
Fixed 5-Year Tenure: Your principal is tied up for 5 years. Unlike PPF, there is absolutely no provision to legally extend a POMIS account beyond maturity.

Example: ₹15 Lakh Joint Account Deposit

Mr. & Mrs. Patel open a joint POMIS account to generate a secondary stream of income, depositing the maximum permissible limit of ₹15,00,000 at the 7.4% rate.

• Annual Interest = ₹1,11,000
• Monthly Payout = ₹9,250
• Total Interest Over 5 Years = ₹5,55,000

The Patels will receive an auto-credited 'pension' of ₹9,250 every month. After 60 months, their initial ₹15 Lakhs is fully returned.

Initial Deposit: ₹15,00,000

Annual Rate: 7.4%

Tenure: 60 Months

Total Interest Earned: ₹5,55,000

POMIS vs Bank FDs vs SCSS

When choosing a reliable fixed-income investment, Indian investors frequently compare POMIS with Bank Fixed Deposits and the Senior Citizen Savings Scheme.

Parameter	POMIS	Senior Citizen Scheme (SCSS)	Bank FD
Interest Rate	7.4% p.a.	8.2% p.a.	6.5% - 7.5% p.a.
Max Deposit	₹9L Single / ₹15L Joint	₹30 Lakhs	No Limit
Payout Frequency	Monthly Only	Quarterly Only	Monthly/Quarterly/Maturity
Tax Benefit (80C)	❌ No	✅ Yes (Up to ₹1.5L)	✅ Yes (Only 5-Yr Tax Saver)
Lock-in Period	5 Years	5 Years (Extendable by 3)	7 Days to 10 Years

Frequently Asked Questions

⚠️ Disclaimer

The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.

POMIS Calculator India 2026 - Post Office Monthly Income Scheme

POMIS Cashflow Output (5 Years)

POMIS Key Rules summary: