Post Office MIS Calculator
See the fixed monthly income your Post Office Monthly Income Scheme deposit pays at the statutory 7.4% — deposit up to ₹9 lakh single or ₹15 lakh joint, principal back after 5 years.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a premier sovereign-backed regular income savings scheme administered by India Post under the Government Savings Promotion Act. Engineered for investors seeking predictable, guaranteed monthly cash flow, POMIS allows you to park a lump sum and receive fixed monthly interest payments for exactly 5 years.
POMIS currently carries an attractive interest rate of 7.4% per annum, paid out monthly directly into your post office or bank savings account. Guaranteed 100% by the Government of India with zero market or credit risk, your initial principal remains completely intact and is returned in full upon maturity at 5 years.
Key Operational Rules: Revised Deposit Caps & Joint Account Advantage
Key statutory guidelines governing Post Office Monthly Income Scheme accounts:
- Enhanced Deposit Caps (Budget 2023):
- Single Account: Up to ₹9,00,000 (₹9 Lakh) per individual (increased from ₹4.5 Lakh).
- Joint Account (up to 3 adults): Up to ₹15,00,000 (₹15 Lakh) (increased from ₹9 Lakh). In a joint account, all joint holders have an equal share in investment and monthly payouts.
- Monthly Interest Payouts: Interest is payable on completion of a month from the date of opening, and so on till maturity. If you do not claim the monthly interest, it does NOT earn any additional interest. Setting up an auto-credit mandate to your savings account ensures timely receipt.
- Five-Year Fixed Tenure: The account matures exactly 5 years from the date of opening. You can close the account and receive your full principal, or reinvest into a fresh POMIS account.
The POMIS Monthly Income Formula
Monthly Income = Principal (P) × (Annual Rate r ÷ 12)
- Monthly Income: Fixed rupee amount credited to your savings account every month for 60 months.
- P — Principal amount deposited (up to ₹9 Lakh single or ₹15 Lakh joint).
- r — Sovereign notified annual rate (7.4% → 0.074).
- Annual Income: Exactly
Monthly Income × 12.
A Worked Example: Monthly Payouts on ₹9 Lakh & ₹15 Lakh Deposits at 7.4%
Guaranteed Monthly Income Breakdown at Current 7.4% Sovereign Rate:
- Single Account Maximum (₹9,00,000):
- Monthly Income Credited: ₹5,550 per month
- Annual Pension Income: ₹66,600 per year
- Total 5-Year Interest Received: ₹3,33,000
- Principal Refunded at Year 5: ₹9,00,000 (Total Proceeds: ₹12.33 Lakh)
- Joint Account Maximum (₹15,00,000):
- Monthly Income Credited: ₹9,250 per month
- Annual Pension Income: ₹1,11,000 per year
- Total 5-Year Interest Received: ₹5,55,000
- Principal Refunded at Year 5: ₹15,00,000 (Total Proceeds: ₹20.55 Lakh)
Post Office MIS Monthly Payouts Across Popular Deposit Slabs at 7.4% p.a.
| Deposit Amount | Account Type | Monthly Payout | Annual Income | Total 5-Year Interest |
|---|---|---|---|---|
| ₹1,00,000 | Single / Joint | ₹617/mo | ₹7,400 | ₹37,000 |
| ₹3,00,000 | Single / Joint | ₹1,850/mo | ₹22,200 | ₹1,11,000 |
| ₹5,00,000 | Single / Joint | ₹3,083/mo | ₹37,000 | ₹1,85,000 |
| ₹9,00,000 (Single Max) | Single | ₹5,550/mo | ₹66,600 | ₹3,33,000 |
| ₹12,00,000 | Joint | ₹7,400/mo | ₹88,800 | ₹4,44,000 |
| ₹15,00,000 (Joint Max) | Joint (2-3 Adults) | ₹9,250/mo | ₹1,11,000 | ₹5,55,000 |
All payouts are 100% sovereign guaranteed by the Government of India. The 7.4% interest rate remains locked in for your entire 5-year tenure.
Taxation Rules: Zero TDS Advantage & Premature Withdrawal Penalty
Tax implications and premature exit guidelines governing POMIS:
- Zero TDS: India Post does NOT deduct any TDS (Tax Deducted at Source) on monthly POMIS interest payments! You declare the interest in your annual income tax filing under "Income from Other Sources".
- No Section 80C Deduction: Deposits in POMIS do not qualify for deductions under Section 80C.
- Premature Exit Penalty: No withdrawal is allowed before 1 year. If closed between 1 year and 3 years, a penalty of 2% of the principal deposit is deducted. If closed between 3 years and 5 years, a penalty of 1% of the principal deposit is deducted.
Post office MIS questions, answered
Crucial answers on deposit limits, monthly payout schedule, joint account limits, premature penalties, and tax rules.
Under revised Budget 2023 rules, an individual can invest up to ₹9,00,000 (₹9 Lakh) in a single account and up to ₹15,00,000 (₹15 Lakh) in a joint account. A person can hold both single and joint accounts, provided their aggregate share does not exceed ₹9 Lakh.
The current notified interest rate for POMIS is 7.4% per annum, payable monthly. The rate locked in on the date of deposit remains fixed for the entire 5-year tenure.
Interest is payable on completion of one month from the opening date and every subsequent month. You can set up an automatic ECS/credit instruction to transfer the monthly interest directly into your post office savings account or commercial bank account.
No. India Post does not deduct any TDS on monthly interest credits. However, the interest earned is fully taxable at your applicable income tax slab rate under "Income from Other Sources".
No. Deposits made into the Post Office Monthly Income Scheme do not qualify for tax deductions under Section 80C. If you require Section 80C tax deductions, consider National Savings Certificates (NSC) or 5-Year Post Office Time Deposits.
No withdrawal is permitted within the first 1 year. If closed between 1 and 3 years, 2% of the principal amount is deducted as penalty. If closed between 3 and 5 years, 1% of the principal amount is deducted.
A joint account can be opened by up to three adults. All joint holders share an equal entitlement to the investment and the monthly interest credits.
No. Non-Resident Indians (NRIs) are not eligible to open a POMIS account. Only resident Indian individuals (including guardians on behalf of minors) can open accounts.
If monthly interest is not withdrawn or auto-credited to a savings account, it remains idle in your POMIS account and does NOT earn any additional interest. Always link your savings account to ensure idle cash earns savings interest or fuels an RD/SIP.
For senior citizens aged 60+, SCSS is superior: it offers higher interest (8.2% vs 7.4%), higher deposit capacity (₹30 Lakh vs ₹9 Lakh), and Section 80C tax deductions, although SCSS pays interest quarterly. POMIS is ideal for non-seniors or investors who specifically need monthly cash flow.