POMIS Interest Rate 2026 — 7.4% p.a.
Confirmed for Q1 FY 2026-27 (April–June 2026) by Ministry of Finance · Interest paid monthly to your linked savings account
⚡ Key Takeaways — POMIS Interest Rate 2026
- Current rate: 7.4% p.a. for Q1 FY 2026-27 — paid monthly, not quarterly
- Monthly payout = Principal × 7.4% ÷ 12 — fixed simple interest, no compounding
- On max single deposit (₹9L): ₹5,550/month guaranteed income
- On max joint deposit (₹15L): ₹9,250/month guaranteed income
- Rate is NOT locked — changes every quarter unlike SCSS (locked for 5 years)
- Rate stable at 7.4% since January 2023 — 14 consecutive quarters unchanged
Current POMIS Interest Rate — Q1 FY 2026-27
| Quarter | Period | Rate (p.a.) | Monthly Rate | Status |
|---|---|---|---|---|
| Q1 FY 2026-27 | April – June 2026 | 7.4% | 0.6167%/mo | ✅ Current |
POMIS Interest Rate History (2011–2026)
| Period | Rate p.a. | Change |
|---|---|---|
| Jan 2023 – Jun 2026 (current) | 7.4% | +0.2% from 7.2% |
| Oct 2022 – Dec 2022 | 7.2% | Raised from COVID-era low |
| Apr 2020 – Sep 2022 | 6.6% | COVID-era reduction |
| Jan 2020 – Mar 2020 | 7.6% | Pre-COVID high |
| Jul 2019 – Dec 2019 | 7.6% | — |
| Jan 2019 – Jun 2019 | 7.7% | — |
| Oct 2018 – Dec 2018 | 7.7% | — |
| Apr 2018 – Sep 2018 | 7.3% | — |
| Apr 2016 – Mar 2018 | 7.6% – 7.8% | — |
| 2012 – 2016 (launch era) | 8.0% – 8.4% | Highest rates |
Source: Ministry of Finance quarterly notifications. Rates shown are approximate ranges.
🔗 Also read
Monthly Payout Schedule
POMIS interest is credited on the same date of the month as the account opening date. If you opened on the 5th of April, interest is credited on the 5th of every month. The first payout arrives one calendar month after opening.
| Account Opened | First Payout | Subsequent Payouts |
|---|---|---|
| April 5, 2026 | May 5, 2026 | 5th of every month |
| April 15, 2026 | May 15, 2026 | 15th of every month |
| April 28, 2026 | May 28, 2026 | 28th of every month |
Interest is auto-credited to your linked Post Office Savings Account (POSA) or bank account via ECS. If you don't withdraw, it earns 4% savings account interest — it does not compound at the POMIS rate.
Monthly Income at 7.4% p.a. — Quick Reference
| Deposit Amount | Monthly Income | Annual Income | 5-Year Total | Account Type |
|---|---|---|---|---|
| ₹1,00,000 | ₹617/mo | ₹7,400 | ₹37,000 | Single |
| ₹3,00,000 | ₹1,850/mo | ₹22,200 | ₹1,11,000 | Single |
| ₹5,00,000 | ₹3,083/mo | ₹37,000 | ₹1,85,000 | Single |
| ₹9,00,000 (max single) | ₹5,550/mo | ₹66,600 | ₹3,33,000 | Single |
| ₹12,00,000 | ₹7,400/mo | ₹88,800 | ₹4,44,000 | Joint |
| ₹15,00,000 (max joint) | ₹9,250/mo | ₹1,11,000 | ₹5,55,000 | Joint |
→ For any custom amount, use the POMIS Calculator.
Critical Difference: POMIS Rate is NOT Locked
This is the most important distinction between POMIS and SCSS that most investors miss:
📘 What happens when the rate changes mid-tenure
| You open POMIS in April 2026 at 7.4% | Monthly payout: ₹5,550 on ₹9L |
| Govt reduces rate to 7.1% in July 2026 | Your payout drops to ₹5,325/month |
| Impact over remaining tenure | ₹225/month less = ₹12,150 less over 4.5 years |
Contrast with SCSS: once you open at 8.2%, that rate is locked for the full 5-year tenure regardless of government changes. For investors who need certainty in monthly income, SCSS's rate lock-in is a meaningful advantage.
POMIS Rate vs Senior Citizen Bank FD Rates (April 2026)
| Institution | 5-yr Senior FD Rate | POMIS Rate | Monthly income on ₹9L |
|---|---|---|---|
| SBI | 7.50% | 7.4% | SBI FD: ₹5,625 vs POMIS: ₹5,550 |
| HDFC Bank | 7.75% | 7.4% | HDFC FD: ₹5,813 vs POMIS: ₹5,550 |
| Post Office TD (5 yr) | 7.5% | 7.4% | TD: ₹5,625 vs POMIS: ₹5,550 |
| POMIS Advantage | Sovereign safety + no DICGC ₹5L cap + no TDS for small investors | ||
While some senior FDs offer slightly higher rates, POMIS provides sovereign safety — no credit risk regardless of deposit size — which makes it the preferred choice for amounts above ₹5L where DICGC insurance doesn't cover bank FDs.
POMIS Interest Rate — Pros & Cons
✅ Advantages
- 7.4% with sovereign backing — safer than bank FDs for large deposits
- Stable — unchanged for 14 consecutive quarters (Jan 2023–Jun 2026)
- Monthly payout — better than SCSS quarterly for regular expenses
- No TDS deducted at source by Post Office
- Rate beats savings accounts and liquid funds
⚠️ Limitations
- Rate NOT locked — can fall during low-rate cycles
- Lower than SCSS (8.2%) — 0.8% p.a. gap = ₹72,000 less on ₹9L over 5 years
- Fully taxable at slab rate — high earners pay up to 30% tax on income
- No 80C benefit — unlike SCSS (old regime)
- Simple interest only — no compounding within POMIS
✅ Who benefits from POMIS 7.4%
- Retirees needing monthly (not quarterly) income for regular expenses
- Investors in 0% or 10% tax bracket — interest tax impact is minimal
- Those with corpus above ₹5L wanting sovereign safety
- Couples maximising joint account (₹15L) for ₹9,250/month
⚠️ Who should compare alternatives
- Senior citizens eligible for SCSS — 8.2% is significantly better
- Those in 30% tax bracket — taxable income from POMIS is costly
- Investors needing rate certainty — SCSS locks rate, POMIS doesn't
- Those wanting growth — KVP or PPF compound better long-term
📋 Disclaimer & Source: POMIS interest rate of 7.4% p.a. is sourced from the Ministry of Finance, Government of India small savings notification effective April 1, 2026 (Q1 FY 2026-27). Last reviewed: April 15, 2026. Rates are reviewed quarterly and may change. This page is for informational purposes only and does not constitute financial advice. · Full Disclaimer
Frequently Asked Questions
The POMIS interest rate for Q1 FY 2026-27 (April–June 2026) is 7.4% per annum, payable monthly. This translates to a monthly rate of 0.6167%, confirmed by the Ministry of Finance on March 30, 2026.
No — this is a crucial difference from SCSS. The POMIS rate changes every quarter as the government reviews it. Your monthly payout will increase or decrease accordingly. If the rate falls during your tenure, your monthly income drops.
Yes. When POMIS was launched in 2011, rates were 8.0–8.4% p.a. The last time it was above 8% was before 2019. The rate was significantly cut during the COVID-era (6.6% in 2020–22) and has recovered to 7.4% since January 2023.
Monthly income = Principal × (Annual rate ÷ 12). At 7.4% on ₹9,00,000: ₹9,00,000 × (7.4 ÷ 12)% = ₹9,00,000 × 0.6167% = ₹5,550/month. The calculation uses simple interest — there is no compounding within POMIS.
Official POMIS rates are notified quarterly by the Ministry of Finance. You can verify at India Post or NSI India. The gazette notification is released on the last working day of the preceding quarter.
For amounts above ₹5 lakh, POMIS is safer — no DICGC cap applies. For rates, large public banks offer senior FDs at 7.5–7.75%, slightly above POMIS 7.4%. Small Finance Banks offer 8–9% but carry higher credit risk. POMIS balances safety with competitive returns for most retirees.