Tenure: 5 Years (Fixed)
Principal
73%
Returns
27%
Withdraw after 1 year with a 2% penalty. If you wait for 3 years, the penalty drops to just 1%. Safe, predictable, and fair.
Penalty on Principal Amount
Income Stability
7.4% Simple Interest Paid Monthly
POMIS is the bedrock of low-risk monthly income. It is designed to act exactly like a salary, providing predictability for your household budget.
The POMIS-RD Engine: By setting up a standing instruction to move MIS interest into an RD, you convert simple interest into compound interest, boosting yield by ~0.5%.
Couple's Advantage: Using a Joint account increases the investable limit to ₹15 Lakh, providing roughly ₹9,250 every month in your hand.
Tax Note
No TDS is deducted, but the interest is fully taxable. It's best suited for those in lower tax brackets or seniors using their enhanced exemptions.
Safety Factor
Like all post office schemes, it is sovereign-backed. Your principal amount is safe from any credit or default risk.
Ministry of Finance (2026). Interest rates are reviewed quarterly. Maximum of 3 joint holders allowed.
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.
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:
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.
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 |
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.
Verified Contributor
I verified this calculation against the **April 2026 Fiscal Cycle**. If you have questions about the logic, reach out via the Author Page.
Interest is automatically credited to your linked Post Office Savings Account. Ensure the account is active to avoid delays.
Move your monthly POMIS interest into a Recurring Deposit (RD) to benefit from compounding, effectively raising your overall yield.