POMIS Calculator
Calculate monthly income from Post Office Monthly Income Scheme
Investment Amount₹9,00,000
POMIS Interest Rate (p.a.)7.4%
Current rate: 7.4% p.a. (Q1 FY 2025-26) · Interest paid monthly
Tenure5 yr
POMIS has a fixed 5-year tenure · Extendable on maturity
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Tax StatusTaxable at slab rate
💡 POMIS pays monthly interest directly to your Post Office Savings Account. The principal is returned in full at maturity after 5 years. It is one of the safest regular income options with a sovereign guarantee.
📅 Year-wise POMIS Income Summary
| Year | Monthly Payout | Annual Income | Cumulative Income |
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What is Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme is a government-backed savings scheme that provides a guaranteed fixed monthly income for 5 years in exchange for a lump-sum deposit. It is one of the safest regular income instruments available in India — backed by the sovereign guarantee of the Government of India — making it ideal for retirees and conservative investors seeking predictable monthly cash flows.
The current POMIS interest rate is 7.4% p.a. (Q1 FY2026), paid monthly. The principal is returned in full at the end of the 5-year tenure.
POMIS Key Rules & Limits (2025)
| Feature | Details |
|---|---|
| Current Interest Rate | 7.4% p.a. (Q1 FY2026), paid monthly |
| Monthly Payout Rate | 7.4% ÷ 12 = 0.617% per month |
| Minimum Investment | ₹1,000 |
| Maximum — Single Account | ₹9,00,000 |
| Maximum — Joint Account | ₹15,00,000 |
| Maximum Monthly Income | ₹5,550/month (single) · ₹9,250/month (joint) |
| Tenure | 5 years (extendable in 5-year blocks) |
| Where to open | Any Post Office in India |
| Tax status | Monthly interest fully taxable at slab rate · No TDS |
| Premature closure | After 1 year with penalty (1% deducted before 3 years, 0.5% after 3 years) |
POMIS Monthly Income Formula
Monthly Payout
Monthly Income = Principal × (Annual Rate ÷ 12)
Example: ₹9,00,000 × (7.4% ÷ 12) = ₹9,00,000 × 0.617% = ₹5,550/month
POMIS uses simple interest — the monthly payout is a fixed amount throughout the 5-year tenure. There is no compounding of payouts. The principal is returned at maturity.
POMIS Calculation — Worked Example
📘 Single account — maximum investment of ₹9,00,000 at 7.4%
| Investment | ₹9,00,000 |
| Interest Rate | 7.4% p.a. |
| Tenure | 5 years |
| Monthly Income | ₹5,550/month |
| Annual Income | ₹66,600/year |
| Total Interest (5 yr) | ₹3,33,000 |
| Principal Returned | ₹9,00,000 (at maturity) |
POMIS vs FD Monthly Payout vs SWP
| Feature | POMIS | Monthly Payout FD | SWP (Mutual Fund) |
|---|---|---|---|
| Returns | 7.4% (guaranteed) | 6.5–8.5% (guaranteed) | 10–14% (market-linked) |
| Safety | Sovereign guarantee | DICGC up to ₹5L | Market risk |
| Maximum investment | ₹9L (single) / ₹15L (joint) | No limit | No limit |
| Principal at end | Full principal returned | Full principal returned | Depends on returns vs withdrawal |
| Tax | Fully taxable (no TDS) | Fully taxable (TDS if >₹40K) | LTCG 12.5% on gains only |
| Best for | Retirees, capped amounts, sovereign safety | Larger corpus, bank preference | Long retirement, inflation hedge |
POMIS for Retirement Income in India
POMIS is one of the most commonly used retirement income tools for risk-averse Indians. Here is how to use it effectively:
- Maximise the account: A retired couple can jointly invest ₹15,00,000 (joint account) + ₹9,00,000 each in individual accounts = ₹33,00,000 total in POMIS, generating ₹20,350/month guaranteed income.
- Combine with SWP: Use POMIS for the guaranteed income floor (covers essential expenses) and an SWP from a balanced mutual fund for additional inflation-beating income.
- Reinvest income in RD: If you don't need the monthly income immediately, open a recurring deposit with the monthly POMIS payout. This effectively compounds your returns — converting POMIS from a simple interest scheme to a compounded one.
- Tax planning: POMIS income is taxable. If both spouses are in lower tax brackets post-retirement, splitting investments between joint and individual accounts can reduce the overall tax burden.
- Ladder with KVP: Invest some corpus in POMIS (for monthly income) and some in KVP (for capital growth and doubling). This gives you both current income and future lump-sum growth.
Frequently Asked Questions
Can I open POMIS online?
Currently POMIS can only be opened by visiting a Post Office branch. However, once the account is opened, the monthly interest is credited automatically to your Post Office Savings Account (POSA) or linked bank account, and you can track it online through the India Post portal or IPPB app.
What happens to POMIS monthly income if I don't withdraw it?
If the monthly interest is not withdrawn, it is credited to your Post Office Savings Account and earns 4% savings account interest — it does not compound at the POMIS rate. To maximise returns, consider manually transferring the monthly income into an RD or liquid fund each month.
Can I have both a single and a joint POMIS account?
Yes — an individual can hold one single POMIS account (up to ₹9L) and be a joint holder in a joint account (up to ₹15L). Each joint holder's share in the joint account is counted against their individual ₹9L limit. So a couple can effectively invest ₹9L (individual) + ₹9L (individual) + up to ₹15L (joint) = maximum ₹33L between them.
Can POMIS be extended after 5 years?
Yes — POMIS can be extended for another 5 years on maturity by submitting an extension application at the Post Office within one month of maturity. The extension continues at the prevailing interest rate at the time of extension, not the original rate.