POMIS Rules & Limits 2026 — Complete Guidelines
Deposit caps, tenure, premature closure, extension, nomination and all Post Office MIS rules
⚡ Key Takeaways
- Maximum deposit: ₹9,00,000 (single) and ₹15,00,000 (joint) — fixed by government
- Fixed 5-year tenure — cannot be shortened; extendable in 5-year blocks at maturity
- Interest rate not locked — reviewed quarterly unlike SCSS which locks for 5 years
- Premature closure: allowed after 1 year — 2% penalty before 3 years, 1% after 3 years
- Interest paid monthly to linked savings account — uncollected interest earns only 4%
- Nomination mandatory at opening — can be changed any number of times free of charge
POMIS Deposit Rules
| Rule | Single Account | Joint Account |
|---|---|---|
| Minimum deposit | ₹1,000 | ₹1,000 |
| Maximum deposit | ₹9,00,000 | ₹15,00,000 |
| Deposit increments | Multiples of ₹1,000 | Multiples of ₹1,000 |
| Top-up allowed | ❌ No | ❌ No |
| One-time deposit | ✅ Yes — at account opening | ✅ Yes — at account opening |
| Individual share limit (joint) | — | Each holder ≤ ₹9L across all accounts |
Key rule: You cannot top up a POMIS account after it's opened. If you want to invest more, you must open a new account (subject to the ₹9L/₹15L overall limit). There is no provision for partial withdrawal either — the principal is locked until maturity.
POMIS Tenure Rules
| Rule | Details |
|---|---|
| Fixed tenure | 5 years from account opening date |
| Early exit allowed? | Yes — but only after 1 year, with penalty |
| Extension available? | Yes — in 5-year blocks, at prevailing rate |
| Maximum extensions | Unlimited (extend every 5 years) |
| Auto-extension? | No — must submit extension request within 1 month of maturity |
| Rate on extension | Prevailing rate at time of extension (not original rate) |
Interest Payment Rules
| Rule | Details |
|---|---|
| Payout frequency | Monthly — credited same date as account opening |
| First payout | One month after account opening date |
| Credit method | ECS/NACH to linked Post Office Savings Account or bank account |
| Uncollected interest | Credited to POSA — earns 4% savings interest, NOT POMIS rate |
| Interest type | Simple interest — no compounding within the scheme |
| Rate revision | Rate reviewed quarterly — payout changes with each revision |
| Rate locking | ❌ NOT locked — unlike SCSS which locks rate at opening |
Premature Closure Rules
POMIS allows premature closure after completing 1 year. The penalty is deducted from principal:
| Time of Closure | Penalty on Principal | Example (₹9L account) |
|---|---|---|
| Before 1 year | ❌ Not allowed | Cannot close within first year |
| After 1 yr, before 3 yrs | 2% of principal deducted | ₹9L − 2% = ₹8,82,000 returned |
| After 3 yrs, before 5 yrs | 1% of principal deducted | ₹9L − 1% = ₹8,91,000 returned |
| At maturity (5 years) | No penalty | Full ₹9L returned |
Interest already paid monthly is not returned or adjusted. The penalty applies only to the principal amount returned.
Extension Rules
At the end of 5 years, you can extend POMIS for another 5-year block:
- Submit extension application at the Post Office within 1 month of maturity
- The account will continue at the prevailing interest rate at extension date — not your original rate
- If you don't extend within 1 month, the principal sits in your POSA at 4% savings rate until you act
- You can extend indefinitely — every 5 years
- Extended account follows all the same rules (same deposit limits, same premature closure rules reset from extension date)
Nomination Rules
| Rule | Details |
|---|---|
| Nomination required? | Strongly recommended at opening — not mandatory but advisable |
| Number of nominees | One or more family members |
| Change nomination | Allowed anytime free of charge |
| On death of holder | Nominee receives principal + accrued interest |
| Joint account on death | Surviving holders continue the account; on all holders' death, nominee receives proceeds |
Transfer Rules
| Rule | Details |
|---|---|
| Transfer between Post Offices | ✅ Allowed — free of charge |
| Transfer to another person | ❌ Not allowed — POMIS cannot be gifted or transferred |
| Loan against POMIS | ❌ Not allowed (unlike LIC or NSC which allow loans) |
| Pledge as collateral | ❌ Not allowed |
Complete POMIS Rules Summary 2026
| Parameter | POMIS Rule |
|---|---|
| Interest rate | 7.4% p.a. (Q1 FY 2026-27) — quarterly review |
| Min / Max deposit | ₹1,000 / ₹9,00,000 (single) · ₹15,00,000 (joint) |
| Tenure | 5 years (fixed) |
| Payout | Monthly simple interest |
| Rate lock | No — changes with quarterly revision |
| Premature closure | After 1 yr: 2% penalty (yr 1–3), 1% penalty (yr 3–5) |
| Extension | 5-year blocks at prevailing rate |
| Tax | Fully taxable at slab — no TDS, no 80C benefit |
| Safety | Sovereign guarantee (Government of India) |
| Where available | Post Office branches only — no online opening |
🔗 Also read
✅ Advantages
- Clear, transparent rules — no complexity or hidden clauses
- Sovereign government guarantee — zero credit or default risk
- Monthly income — better cash flow vs quarterly schemes
- Extension option — continue at prevailing rate without reopening
⚠️ Limitations
- No top-up allowed — one-time deposit at opening only
- Rate not locked — monthly income can fall if govt cuts rate
- No loan facility — cannot pledge POMIS as collateral
- 2% penalty on early exit before 3 years is relatively steep
✅ This applies to you if
- Investors who want a clear, rule-based government savings scheme
- Those planning to hold for the full 5 years to avoid penalty
- Retirees seeking predictable monthly income with no market uncertainty
- Anyone wanting sovereign-guaranteed income with zero credit risk
⚠️ Think twice if
- Those who may need the money back within 1 year — premature closure not allowed in year 1
- Investors wanting to top up monthly — POMIS is a one-time deposit only
- Those wanting rate certainty — POMIS rate changes quarterly
- Anyone needing the deposit as loan collateral — POMIS cannot be pledged
📋 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
No — POMIS does not allow top-ups. The deposit is one-time at account opening. If you want to invest additional funds, you must open a new POMIS account (subject to the ₹9L/₹15L individual/joint limits).
The monthly interest is automatically credited to your Post Office Savings Account (POSA). If you don't withdraw it from POSA, it earns 4% savings account interest — it does not compound at the POMIS rate of 7.4%. To maximize returns, transfer monthly POMIS interest to an RD each month.
Yes — but only after completing 1 year. If you close between 1–3 years, 2% is deducted from your principal. Between 3–5 years, 1% is deducted. All monthly interest already received is yours to keep — only the principal returned is reduced by the penalty.
No — unlike NSC or LIC policies, POMIS cannot be pledged as collateral or used to secure a loan. It also cannot be transferred to another person. The only way to exit before 5 years is premature closure with penalty.
At maturity, the full principal is credited to your POSA. You must apply for extension within 1 month of maturity if you want to continue. If you don't apply, the principal sits in your POSA at 4% savings rate. You can extend for another 5 years at the prevailing interest rate.