Post Office MIS Calculator

⚠️ Not financial advice. Results are illustrative only and should not be used as the basis for any investment, tax, or financial decision. Consult a qualified financial adviser or chartered accountant before acting on any figure shown.

What is a POMIS calculator?

The Post Office MIS calculator computes the monthly interest payout, total 5-year interest, and principal returned at maturity for a Post Office Monthly Income Scheme deposit, as governed by the National Savings (Monthly Income Account) Scheme rules, with the interest rate set via the Department of Economic Affairs' quarterly small savings rate notification. Choose between single account (₹9 lakh cap) and joint account (₹15 lakh cap).

Who should use POMIS?

Retirees, parents wanting fixed monthly income, conservative investors who prioritize capital safety over returns. POMIS pairs well with SCSS (Senior Citizens Savings Scheme) and PPF for a diversified low-risk income portfolio. The 7.4% rate beats most savings accounts and many bank FDs.

POMIS vs senior citizen FD

Senior citizen bank FDs typically offer 7.5–8% — comparable or slightly higher than POMIS. Difference: bank FD pays interest at maturity (or quarterly), POMIS pays monthly. Choose POMIS if you need monthly cash flow; choose FD if you can wait. SCSS (8.2%) beats both for seniors who qualify (60+ or 55+ with VRS).

Building a monthly income portfolio with POMIS

A retired couple can combine ₹15 lakh in a joint POMIS (₹9,250 a month at 7.4%) with ₹30 lakh in SCSS (₹20,500 a month at 8.2%, paid as ₹61,500 every quarter) for ₹29,750 a month from government-backed instruments on ₹45 lakh invested. For couples where only one is a senior, the SCSS contribution is limited to one account. The MIS portion provides the month-on-month predictability that makes budgeting straightforward.

Opening and managing a POMIS account

POMIS accounts can be opened at any post office branch or through India Post internet banking. You need a Post Office savings account for interest credit — the monthly payout is auto-credited to this linked account. There is no automatic renewal; at maturity the principal is credited back to your savings account and you must reinvest manually. The 5-year interest rate is locked at the time of account opening — regardless of subsequent quarterly revisions by the Ministry of Finance — making it a predictable income stream for the full tenure.

POMIS taxation and form submission

Interest from POMIS is taxable at your income slab rate and must be declared in your ITR under "Income from Other Sources." Post offices are widely reported not to deduct TDS on POMIS interest, but we could not confirm that against an official India Post or Income Tax Department source, so check your passbook and Form 26AS instead of assuming nothing was deducted. If TDS is deducted, you claim it as credit when you file; if your total income is below the taxable limit, Form 15G (Form 15H for senior citizens) is how you ask for no deduction. Either way, include POMIS interest in your advance tax calculations to avoid penalties under Section 234B.

Frequently asked questions

What is Post Office Monthly Income Scheme (POMIS)?

POMIS is a small savings scheme where you deposit a lump sum and receive a fixed monthly interest payout. Tenure is 5 years; principal is returned at maturity. Government-backed, very safe — popular with retirees needing predictable monthly income.

What is the current POMIS interest rate?

7.4% p.a. for the October–December 2026 quarter (unchanged), paid monthly. The rate is set by the Ministry of Finance and revised quarterly. Once you open the account, your rate is locked for the full 5-year tenure regardless of subsequent changes.

What's the maximum I can invest in POMIS?

₹9 lakh in a single account and ₹15 lakh in a joint account, with a minimum of ₹1,000 in multiples of ₹1,000. The ceiling applies to each person: what you put in your own accounts plus an equal share of any joint account has to stay within ₹9 lakh. A couple can therefore invest up to ₹18 lakh in total (₹11,100 a month at 7.4%), for example ₹15 lakh in a joint account (₹9,250 a month) plus ₹1.5 lakh each in single accounts. Check how your post office applies the rule when you open the account.

Is POMIS interest tax-free?

No. Monthly interest is added to your income and taxed at your slab rate. Post offices are widely reported not to deduct TDS on POMIS interest, but we could not confirm that against an official India Post or Income Tax Department source, so check your passbook and Form 26AS, and declare the full interest in your ITR either way. POMIS doesn't qualify for Section 80C either, unlike PPF or NSC. The appeal is the income predictability, not tax savings.

Can I withdraw POMIS before 5 years?

Yes, but with penalties. Withdrawal between 1–3 years: 2% of principal deducted. Between 3–5 years: 1% deducted. No premature closure within first year. The penalty plus loss of remaining months' interest usually makes early closure unattractive.