POMIS Interest Calculator 2026 — Monthly Payout Formula
How POMIS interest is calculated, the formula, quick reference table and how income is credited
⚡ Key Takeaways
- POMIS interest formula: Monthly income = Principal × Annual Rate ÷ 12
- At 7.4% p.a.: monthly rate = 0.6167% per month on the principal
- Interest is simple interest — same amount every month, no compounding within POMIS
- Interest credited on the same date each month as account opening to your POSA
- First interest payment arrives one month after account opening
- Uncollected interest in POSA earns only 4% savings rate — not the POMIS 7.4% rate
The POMIS Interest Formula
Monthly Interest = Principal × (Annual Rate ÷ 12)
At 7.4% on ₹9,00,000:
= ₹9,00,000 × (7.4 ÷ 12)%
= ₹9,00,000 × 0.6167%
= ₹5,550 per month
This is simple interest — the same ₹5,550 is paid every month for all 60 months. The principal of ₹9L is never reduced.
Quick Interest Reference — All Common POMIS Amounts
| Deposit | Monthly Interest | Quarterly | Annual | 5-Year Total |
|---|---|---|---|---|
| ₹50,000 | ₹308 | ₹925 | ₹3,700 | ₹18,500 |
| ₹1,00,000 | ₹617 | ₹1,850 | ₹7,400 | ₹37,000 |
| ₹2,00,000 | ₹1,233 | ₹3,700 | ₹14,800 | ₹74,000 |
| ₹3,00,000 | ₹1,850 | ₹5,550 | ₹22,200 | ₹1,11,000 |
| ₹5,00,000 | ₹3,083 | ₹9,250 | ₹37,000 | ₹1,85,000 |
| ₹7,50,000 | ₹4,625 | ₹13,875 | ₹55,500 | ₹2,77,500 |
| ₹9,00,000 (max single) | ₹5,550 | ₹16,650 | ₹66,600 | ₹3,33,000 |
| ₹12,00,000 | ₹7,400 | ₹22,200 | ₹88,800 | ₹4,44,000 |
| ₹15,00,000 (max joint) | ₹9,250 | ₹27,750 | ₹1,11,000 | ₹5,55,000 |
How POMIS Interest is Credited
| Aspect | Details |
|---|---|
| Credit date | Same date every month as the account opening date |
| First payment | One month after account opening |
| Credit method | Auto-credited to POSA (Post Office Savings Account) or linked bank account via ECS/NACH |
| If not withdrawn from POSA | Interest earns 4% savings rate — does NOT compound at 7.4% |
| Missed credits | Past-due interest not paid additionally — credited as per POSA accumulation |
| Action recommended | Withdraw or transfer to RD monthly to maximise effective returns |
Annual, Quarterly and Per-Diem Equivalents
| Period | Interest on ₹9L at 7.4% | Formula |
|---|---|---|
| Per day | ₹183/day | ₹9L × 7.4% ÷ 365 |
| Per month | ₹5,550/month | ₹9L × 7.4% ÷ 12 |
| Per quarter (3 months) | ₹16,650/quarter | ₹5,550 × 3 |
| Per year | ₹66,600/year | ₹5,550 × 12 |
| Full 5-year tenure | ₹3,33,000 | ₹66,600 × 5 |
POMIS vs FD Interest — How They Differ
| Aspect | POMIS | Monthly Payout FD |
|---|---|---|
| Interest type | Simple interest (fixed payout) | Simple interest on payout FDs |
| Rate | 7.4% (changes quarterly) | 7.5–7.75% (fixed at FD opening) |
| Rate lock | ❌ Changes each quarter | ✅ Locked for FD tenure |
| Monthly amount | Fixed per month (may change quarterly) | Fixed for full FD tenure |
| TDS on interest | No TDS by Post Office | TDS if interest > ₹40K/yr |
How to Maximise POMIS Interest Earned
- Open on 1st of month: Maximum days of interest in the first partial month
- Invest maximum: ₹9L (single) gives ₹5,550/month — leaving any below the cap wastes earning potential
- Reinvest in RD: Route monthly POMIS interest into an RD — converts simple interest into compounded returns (~8.1% effective)
- Joint account: ₹15L joint gives ₹9,250/month — 66% more than a single ₹9L account
- Couple strategy: ₹33L across three accounts → ₹20,350/month combined
- Withdraw monthly: Don't let interest sit in POSA earning only 4% — move it actively
🔗 Also read
✅ Advantages
- Simple, transparent formula — no hidden calculations
- Fixed monthly amount — predictable income every month
- Sovereign safe — interest payment backed by Government of India
⚠️ Limitations
- Simple interest only — no compounding within scheme
- Rate can change quarterly — monthly amount not permanently fixed
- Uncollected interest earns only 4% in POSA — requires active management
✅ This applies to you if
- Anyone wanting to understand exactly how POMIS calculates monthly interest
- First-time investors verifying the formula before opening an account
- Those comparing POMIS interest mechanics with bank FD interest
⚠️ Think twice if
- Those expecting compounding — POMIS is simple interest only
- High-bracket taxpayers — interest is fully taxable at slab rate
- NRIs — not eligible for POMIS regardless of interest mechanics
📋 Disclaimer & Source: All POMIS data on this page is sourced from India Post / Ministry of Finance, Govt. of India and India Post official guidelines. Interest rate of 7.4% p.a. is effective Q1 FY 2026-27 (April 1, 2026). Last reviewed: April 15, 2026. This page is for informational purposes only and does not constitute financial advice. · Full Disclaimer
Frequently Asked Questions
POMIS interest = Principal × Annual Rate ÷ 12. At 7.4% on ₹9,00,000: ₹9,00,000 × 7.4% ÷ 12 = ₹5,550 per month. This same amount is paid every month for 60 months. It is simple interest — there is no compounding within the scheme.
POMIS interest is credited monthly on the same date as the account opening date. If you opened on the 10th of April, interest is credited on the 10th of every month. The first payment comes one month after opening.
The monthly interest rate of POMIS is the annual rate divided by 12. At 7.4% p.a., the monthly rate is 7.4 ÷ 12 = 0.6167% per month. This gives ₹5,550/month on ₹9,00,000.
No — POMIS pays simple interest. The monthly payout is fixed and equal every month, and is not added back to the principal. To create compounding, manually deposit each month's POMIS payout into a Recurring Deposit (RD).
Uncollected POMIS interest accumulates in your Post Office Savings Account (POSA) where it earns only 4% savings account interest — not the POMIS rate of 7.4%. To avoid losing out, either withdraw monthly or set up auto-transfer to an RD.