Post Office Monthly Income Scheme (POMIS) is a 5-year fixed-deposit scheme that pays interest monthly — currently 7.4% per annum. Maximum ₹9 lakh single account, ₹15 lakh joint. The go-to scheme for low-risk monthly income.
What is POMIS?
POMIS is a 5-year deposit scheme run by India Post. Interest is calculated monthly and credited to your post-office or linked bank savings account every month. At maturity, the principal is returned. Maximum investment is ₹9 lakh in a single account, ₹15 lakh in a joint account (up to 3 holders).
The scheme is fully government-backed and available to any Indian adult (joint with up to 3 adults, or for a minor through guardian). Unlike SCSS, there's no age requirement — anyone can invest.
How POMIS monthly income is calculated
Monthly interest = Principal × Annual Rate / 12. The interest is credited to your savings account on the same date each month (the date your account was opened). Principal is returned at the end of 5 years.
Tax treatment: interest is fully taxable. TDS applies above ₹40,000/year (₹50,000 for seniors). Principal does NOT qualify for 80C — POMIS is purely an income-generating scheme, not a tax-saving one.
How to use this calculator
Enter investment amount
Maximum ₹9 lakh single, ₹15 lakh joint. Minimum ₹1,000 in multiples of ₹1,000.
Confirm current rate
7.4% as of FY 2024-25. Government revises quarterly. Check indiapost.gov.in for the latest before opening.
Read monthly income + total interest
Calculator shows monthly income you'll receive, annual total, and 5-year cumulative interest. Use for income planning.
When to use it
Monthly income for retirees who don't qualify for SCSS
Anyone under 60 (or 60+ who has exhausted SCSS limit) can use POMIS for guaranteed monthly income at 7.4%. Slightly below SCSS but no age requirement.
Income from inheritance / windfall
Received a lump sum (inheritance, property sale, retirement payout) and want monthly cash flow without market risk? POMIS at the ₹9L cap gives ₹5,550/month with zero market exposure.
Conservative core of a retirement portfolio
Many retirees keep 30-40% of corpus in absolute-safe instruments — POMIS and SCSS together cover this layer. The remainder can stay in equity/hybrid for inflation protection.
Common mistakes to avoid
Exceeding the ₹9 lakh single cap
Excess investment is refunded without interest. To invest more, use a joint account (₹15 lakh max) or open separate accounts in spouse/children names.
Forgetting that interest is taxable
Many POMIS holders treat the monthly payout as 'tax-free income'. It is taxable. At 30% slab, ₹5,550 monthly becomes ~₹3,885 after tax.
Frequently asked questions
What's the maximum POMIS investment?
When does the monthly interest get paid?
Can I withdraw POMIS early?
POMIS vs SCSS — which is better?
Can I open POMIS in any post office or only specific ones?
References
- Post Office Monthly Income Scheme — India Post— India Post