India Post · Small Savings · Updated Oct 2026
Post Office Monthly Income Scheme (POMIS) Calculator
Turn a lump-sum deposit into a fixed monthly income at the official 7.4% p.a. rate (1 Oct – 31 Dec 2026; unchanged since Apr 2023 — verify at indiapost.gov.in). Estimate payouts, 5-year maturity value, premature-closure penalty, and compare against a bank FD.
Estimate only — not financial advice. Rates are set by the Government of India every quarter and can change. Figures below use the stated rate for illustration; confirm the current rate and rules at your post office before investing.
Estimate only — not financial advice. The rate field below is for what-if scenarios; your actual rate locks at the rate in force when you open the account.
- Annual interest
- ₹37,000
- Total interest over 5 years
- ₹1,85,000
- Deposit returned at maturity
- ₹5,00,000
- Total received (60 payouts + deposit)
- ₹6,85,000
- Maturity date
- 10 Oct 2031
Year-by-year breakdown
| Year | Monthly payout | Interest this year | Cumulative interest |
|---|
First 12 monthly payouts
| # | Payout month | Amount | Running total |
|---|
- Penalty
- 2% = ₹10,000
- Interest already paid
- ₹74,000
- Total value (returned + interest paid)
- ₹5,64,000
- Rule applied
- Closed between 1–3 years → 2% of deposit deducted
Rule: no withdrawal before 1 year · 1–3 years: 2% of deposit deducted · 3–5 years: 1% deducted (India Post scheme norms).
POMIS and SCSS pay out interest (monthly/quarterly cash flow, no compounding). The FD and Time Deposit compound and pay a lump sum at maturity. Comparison assumes you spend the payouts rather than reinvest them.
Static comparison — ₹5,00,000 for 5 years
| Scheme | Payout | Total interest (5 yr) | Proceeds | Notes |
|---|---|---|---|---|
| POMIS (monthly payout) 7.4% p.a., paid monthly | ₹3,083.33/month | ₹1,85,000 | ₹6,85,000 | Govt-backed; monthly cash flow; rate locked at opening |
| Post Office 5-yr Time Deposit 7.5% p.a., compounded quarterly | — (lump sum at maturity) | ₹2,24,974.01 | ₹7,24,974.01 | Govt-backed; compounds; no monthly income |
| Bank 5-yr Fixed Deposit 7.0% p.a., compounded quarterly (editable) | — (lump sum at maturity) | ₹2,07,389.10 | ₹7,07,389.10 | DICGC insured up to ₹5 lakh per bank; compounds; no monthly income |
| Senior Citizen Savings Scheme (60+) 8.2% p.a., paid quarterly | ₹10,250/quarter | ₹2,05,000 | ₹7,05,000 | Govt-backed; 60+ only; ₹30 lakh cap; quarterly cash flow |
Live comparison — your deposit
| Scheme | Rate | Regular payout | Total interest (5 yr) | Proceeds |
|---|
Rates: POMIS 7.4% p.a. monthly payout; Post Office 5-yr Time Deposit 7.5% p.a. compounded quarterly; SCSS 8.2% p.a. quarterly payout (age 60+, ₹30 lakh cap) — all per the Finance Ministry’s Oct–Dec 2026 notification. Bank FD rate is your editable assumption. Verify before investing.
POMIS rules at a glance
- Tenor: 5 years. Full deposit returned at maturity; renewable for another 5 years at the then-current rate.
- Rate: 7.4% p.a. payable monthly (Oct–Dec 2026 quarter). Locks at account opening; quarterly revisions apply to new accounts only.
- Limits: ₹1,000 minimum (multiples of ₹1,000); ₹9 lakh single / ₹15 lakh joint (2–3 adults, equal shares).
- Eligibility: resident Indian adults; joint accounts up to 3 adults; guardian for a minor; minor above 10 years in own name.
- Premature closure: not allowed before 1 year; 2% of deposit deducted at 1–3 years; 1% at 3–5 years.
- Payouts: credited monthly to your post office savings account; unclaimed interest earns nothing extra.
- Tax: interest fully taxable at slab rates; no Section 80C benefit; TDS provisions apply.
- Safety: backed by the Government of India (sovereign guarantee).
Frequently asked questions
Estimate only — not financial advice. Answers describe the scheme rules and use the 7.4% p.a. rate for the Oct–Dec 2026 quarter. Confirm the current rate at indiapost.gov.in before investing.
1 What is the current Post Office Monthly Income Scheme interest rate?
The official POMIS rate is 7.4% per annum, payable monthly. It applies for the quarter 1 October – 31 December 2026 (announced by the Finance Ministry on 30 September 2026) and has been unchanged since April 2023. Rates are reviewed every quarter, so always verify the latest rate at indiapost.gov.in before investing. The rate in force on the day you open the account applies for the full 5-year tenor — later revisions affect only new accounts.
2 How much monthly income will I get from POMIS?
Monthly payout = deposit × 7.4% ÷ 12. Examples at the current rate: ₹1,00,000 → ₹616.67/month (₹7,400/year); ₹5,00,000 → ₹3,083.33/month (₹37,000/year, ₹1,85,000 over 5 years); ₹9,00,000 (single-account maximum) → ₹5,550/month (₹66,600/year, ₹3,33,000 over 5 years); ₹15,00,000 (joint-account maximum) → ₹9,250/month (₹1,11,000/year, ₹5,55,000 over 5 years). Use the calculator above for your exact deposit.
3 What are the minimum and maximum deposits in POMIS?
Minimum ₹1,000 (in multiples of ₹1,000). Maximum ₹9,00,000 in a single account and ₹15,00,000 in a joint account (2–3 adults, equal shares). You may hold more than one account, but the combined balance per person is subject to the same caps. A guardian can open an account for a minor, and a minor aged 10 or above can open one in their own name — a separate lower limit applies to minors, so confirm it at your post office.
4 What is the premature closure penalty for POMIS?
You cannot close a POMIS account before completing 1 year. If closed after 1 year but before 3 years, 2% of the deposit is deducted; after 3 years but before 5 years, 1% is deducted. Example: closing a ₹5,00,000 deposit after 24 months costs a ₹10,000 penalty — you get back ₹4,90,000 plus the ₹74,000 interest already paid, for ₹5,64,000 in total.
5 Is POMIS interest taxable?
Yes. POMIS interest is fully taxable at your income-tax slab rate under ‘Income from Other Sources’. The deposit does not qualify for any Section 80C deduction, and TDS provisions apply to the interest, like other deposit interest. This is general information, not tax advice — consult a tax professional for your situation.
6 POMIS vs bank fixed deposit — which pays more?
On ₹5,00,000 for 5 years: POMIS at 7.4% pays ₹3,083.33 every month, ₹1,85,000 total interest, with the ₹5,00,000 principal returned at maturity. A 5-year bank FD at 7.0% compounded quarterly grows to about ₹7,07,389.10 — roughly ₹2,07,389.10 interest paid as a lump sum at maturity. The FD total is higher because interest compounds; POMIS gives you monthly cash flow instead. The right choice depends on whether you need regular income or maximum growth — this comparison is an estimate, not financial advice.
7 What happens to my money when POMIS matures after 5 years?
The full deposit is returned to you, plus the last month’s interest — on ₹5,00,000 at 7.4% that is ₹5,00,000 + 60 payouts totalling ₹1,85,000 (₹6,85,000 received overall). You can renew the account for another 5 years at the then-current rate. There is no maturity bonus (discontinued in December 2011).
8 Does unclaimed monthly interest earn extra interest in POMIS?
No. Monthly interest must be withdrawn or auto-credited to your post office savings account each month; any interest left idle earns nothing extra — it is not reinvested or compounded. That is why the 5-year total is exactly 60 × the monthly payout.
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