What is POMIS? Post Office Monthly Income Scheme — Complete Guide 2026
India's safest monthly income scheme · 7.4% p.a. · Sovereign guarantee · ₹9L single / ₹15L joint
⚡ Key Takeaways — What is POMIS
- POMIS = Post Office Monthly Income Scheme — a Government of India savings scheme paying guaranteed monthly interest
- Current rate: 7.4% p.a. (Q1 FY 2026-27) — paid monthly, not annually or quarterly
- Investment limits: ₹9,00,000 (single) and ₹15,00,000 (joint) — principal returned after 5 years
- Open to all Indian residents 18+ — no age restriction unlike SCSS
- Fully taxable interest — no TDS by Post Office, but declare in ITR annually
- Available at all Post Office branches — cannot be opened online
What is POMIS (Post Office Monthly Income Scheme)?
The Post Office Monthly Income Scheme (POMIS) — also called MIS (Monthly Income Scheme) — is a government-backed savings instrument offered through India Post. It allows you to invest a lump sum and receive a fixed monthly interest payment for 5 years. At the end of 5 years, your entire principal is returned.
It was designed primarily for retirees, pensioners, and conservative investors who need a regular, predictable monthly income without market risk. The Government of India provides a sovereign guarantee on all deposits — meaning your money is as safe as it gets.
How POMIS Works — Step by Step
- Deposit: You deposit a lump sum (minimum ₹1,000, maximum ₹9L single / ₹15L joint) at a Post Office.
- Monthly interest: Each month, the Post Office credits interest = Principal × 7.4% ÷ 12 to your linked savings account.
- 5-year tenure: This continues for 60 months (5 years). Your principal stays untouched.
- Maturity: At the end of 5 years, your full principal is returned. You can withdraw or reinvest.
- Extension: You can extend for another 5 years at the prevailing rate on the maturity date.
| Investment | ₹9,00,000 (max single account) |
| Interest rate | 7.4% p.a. (Q1 FY 2026-27) |
| Monthly income | ₹9,00,000 × 7.4% ÷ 12 = ₹5,550/month |
| Annual income | ₹66,600/year |
| Total interest over 5 years | ₹3,33,000 |
| Principal returned at maturity | ₹9,00,000 (in full) |
| Total value at end | ₹9,00,000 + ₹3,33,000 received = ₹12,33,000 |
POMIS Key Features & Limits 2026
| Feature | Details |
|---|---|
| Interest rate | 7.4% p.a. (Q1 FY 2026-27) — reviewed quarterly |
| Payout frequency | Monthly (not quarterly like SCSS) |
| Minimum investment | ₹1,000 |
| Maximum — single account | ₹9,00,000 |
| Maximum — joint account | ₹15,00,000 (up to 3 joint holders) |
| Tenure | 5 years (extendable in 5-year blocks) |
| Principal at maturity | Returned in full — not consumed |
| Sovereign safety | Government of India guarantee — no credit risk |
| Tax on interest | Fully taxable at slab rate · No TDS by Post Office |
| 80C benefit | None (unlike SCSS which has 80C in old regime) |
| Where to open | Any Post Office branch — cannot open online |
| Number of accounts | One single account per individual + joint accounts (share counted against ₹9L limit) |
Who Can Invest in POMIS?
| Category | Eligible? | Notes |
|---|---|---|
| Indian resident individual (18+) | ✅ Yes | Single or joint account |
| Senior citizens (60+) | ✅ Yes | No special benefits — SCSS is better for seniors |
| Joint account (up to 3 adults) | ✅ Yes | Max ₹15L; each holder's share counts against ₹9L |
| Minor through guardian | ✅ Yes | Account converts to regular on turning 18 |
| NRI (Non-Resident Indian) | ❌ No | NRIs are not eligible for POMIS |
| HUF (Hindu Undivided Family) | ❌ No | HUFs cannot open POMIS |
| Trusts / companies | ❌ No | Only individuals |
How to Open a POMIS Account
- Visit any Post Office with the required documents.
- Fill the POMIS application form (Form for MIS account — available at the Post Office or India Post website).
- Submit documents: PAN card, Aadhaar card, address proof, passport-size photographs, Post Office Savings Account details (for crediting monthly interest).
- Make the deposit: Pay by cash, cheque, or online transfer. Minimum ₹1,000.
- Account activated: You receive a passbook. First monthly interest is credited one month after the account opening date.
Pro tip: Open your POMIS account on the 1st of the month to ensure you receive a full 60 monthly payouts. Accounts opened mid-month receive partial interest for the first month.
How POMIS Interest is Paid
Monthly interest is auto-credited to your Post Office Savings Account (POSA) or a linked bank account on the same date as the account opening date each month. If you opened on the 10th of April, you receive interest on the 10th of every subsequent month for 5 years.
What if you don't withdraw the monthly interest? If you don't withdraw, the interest sits in your POSA and earns 4% savings account interest. It does not compound at the POMIS rate. To maximise returns, transfer the monthly POMIS interest into a Recurring Deposit — this effectively converts the simple interest of POMIS into compounded returns.
Tax Treatment of POMIS Interest
| Tax Aspect | POMIS Rule |
|---|---|
| Tax on interest | Fully taxable as "Income from Other Sources" at your slab rate |
| TDS by Post Office | No TDS deducted at source |
| Advance tax obligation | If total tax liability exceeds ₹10,000/year, pay advance tax quarterly |
| 80C deduction | Not available (SCSS has 80C in old regime, POMIS does not) |
| 80TTB (senior citizens) | Not applicable (80TTB covers interest from banks/post office savings — not MIS) |
| Form 15G/15H | Can be submitted to avoid TDS on POSA savings interest only; POMIS interest is self-assessed |
Tax impact example: If you earn ₹5,550/month from POMIS (₹66,600/year) and are in the 20% tax bracket, your after-tax income is ₹53,280/year — effectively a net yield of 5.92% instead of 7.4%.
POMIS Premature Closure Rules
POMIS allows premature closure after 1 year from account opening, with the following penalty structure:
| Time of Closure | Penalty |
|---|---|
| Before 1 year | ❌ Not allowed — must complete 1 year |
| After 1 year but before 3 years | 2% deducted from principal |
| After 3 years but before 5 years | 1% deducted from principal |
| At maturity (5 years) | No penalty — full principal returned |
Example: If you close a ₹9L POMIS account after 2 years, you receive ₹9L − 2% = ₹8,82,000 back (plus all monthly interest already paid).
POMIS vs SCSS — Key Differences
| Feature | POMIS | SCSS |
|---|---|---|
| Interest rate | 7.4% p.a. | 8.2% p.a. (higher) |
| Payout frequency | Monthly ✅ | Quarterly |
| Rate lock-in | Not locked — changes quarterly | Locked for 5 years |
| Eligibility | All Indians 18+ | 60+ only (or qualifying retirees at 55) |
| Max deposit (single) | ₹9,00,000 | ₹30,00,000 |
| 80C deduction | No | Yes (old regime) |
| Best for | Monthly income seekers below 60 | Senior citizens — higher rate + rate lock |
→ See the detailed POMIS vs SCSS comparison for the full breakdown.
✅ Why POMIS is a Good Choice
- Sovereign guarantee — safest income instrument in India
- Monthly payouts — better cash flow management
- No age restriction — open to all adults, not just seniors
- Principal returned in full at maturity
- Simple, transparent structure — no market complexity
⚠️ Limitations to Know
- Rate not locked — income can fall if government cuts rate
- Lower than SCSS (7.4% vs 8.2%) for senior citizens
- Fully taxable — no 80C or 80TTB benefit
- Low deposit cap — ₹9L single, ₹15L joint
- No compounding — simple interest only
✅ POMIS is ideal for
- Retirees below 60 who need monthly income (SCSS requires 60+)
- Anyone wanting sovereign-guaranteed monthly income
- Conservative investors uncomfortable with market risk
- Couples using joint account for ₹9,250/month on ₹15L
- First-time investors seeking simplicity and safety
⚠️ Think twice if you are
- Senior citizen eligible for SCSS — 8.2% rate is meaningfully better
- In the 30% tax bracket — taxable income reduces net yield significantly
- Looking for corpus growth — POMIS doesn't compound
- NRI — you are not eligible for POMIS
- Needing to invest more than ₹15L in a single scheme