Post Office Monthly Income Scheme (MIS) — Interest Rate, How to Open Account

Looking for a safe investment that gives you monthly income? The Post Office Monthly Income Scheme (POMIS) is one of the best options in India. It is backed by the Government of India, your money is 100% safe, and you get a fixed monthly payout directly into your savings account.

This guide covers everything — current interest rate, deposit limits, how to open an account, monthly income calculation, premature withdrawal rules, tax treatment, and more.

What Is Post Office Monthly Income Scheme (POMIS)?

The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme offered by India Post. You deposit a lump sum amount, and the post office pays you interest every month for 5 years. At the end of 5 years (maturity), your original deposit is returned in full.

Key Features at a Glance

Current POMIS Interest Rate (2025–26)

The POMIS interest rate for January to March 2026 (Q4 FY 2025–26) is:

7.4% per annum, paid monthly

The government reviews small savings scheme interest rates every quarter. The POMIS rate has remained at 7.4% since April 2023.

POMIS Interest Rate History

Who Can Open a POMIS Account?

• Any resident Indian citizen aged 18 or above
• A minor (aged 10+) can open an account in their own name
• An account can be opened by a guardian on behalf of a minor below 10 years
• Joint account can be opened by up to 3 adults
• NRIs and HUFs are not eligible

Deposit Limits

Important: The maximum limit applies across all your MIS accounts. If you have ₹5 lakh in one MIS account, you can only invest ₹4 lakh more in another single account.

In a joint account, each holder's share is equal. So in a joint account with 2 holders and ₹15 lakh deposit, each holder's share is ₹7.5 lakh.

The minimum deposit is ₹1,000, and investments must be in multiples of ₹1,000.

How to Open a POMIS Account (Step by Step)

Documents Required

• Identity proof — Aadhaar card, PAN card, Voter ID, or Passport
• Address proof — Aadhaar, utility bill, or bank statement
• Passport-size photographs (2 copies)
• PAN card or Form 60 (mandatory for deposits of ₹50,000 or more)

Steps to Open at Post Office

1. Visit your nearest Head Post Office or Sub Post Office
2. Ask for the MIS Account Opening Form
3. Fill in your personal details, nominee information, and deposit amount
4. Attach the required documents (KYC)
5. Deposit the amount via cash, cheque, or demand draft
6. You will receive a passbook as proof of your investment

Can You Open POMIS Online?

Currently, you cannot open a new POMIS account online. You must visit the post office in person. However, if you have an India Post Internet Banking or IPPB (India Post Payments Bank) account, you may be able to manage your existing account and track interest payouts online.

Monthly Income Calculation

The formula to calculate your monthly income from POMIS:

Monthly Income = (Deposit Amount × Interest Rate) ÷ 12

Examples

With the maximum joint account deposit of ₹15 lakh, you earn ₹9,250 per month — a reliable income without any risk.

Tip: The monthly interest is automatically credited to your linked post office savings account. You can also set up auto-transfer to your bank account.

Premature Withdrawal Rules

You cannot withdraw your deposit before 1 year from the date of opening.

After Maturity

• You can withdraw the full amount after 5 years without any deduction
• If you don't withdraw at maturity, the amount earns interest at the post office savings account rate (currently 4%)
• You can reinvest by opening a new POMIS account

Tax Treatment of POMIS

Understanding the tax implications is important:

• No Section 80C benefit — POMIS deposits do not qualify for tax deduction under Section 80C
• Interest is fully taxable — Monthly interest earned is added to your total income and taxed as per your income tax slab
• No TDS — The post office does not deduct TDS on POMIS interest. But you must declare the interest income in your ITR
• Interest up to ₹10,000 from post office savings account (where POMIS interest is credited) is exempt under Section 10(15)(i) — but this applies only to the savings account interest, not POMIS interest itself

Tip: If your total income is below the taxable limit, you effectively pay zero tax on POMIS interest.

POMIS vs Fixed Deposit vs SCSS — Comparison

Who should choose POMIS? Anyone who wants a guaranteed monthly income with zero risk — retirees, homemakers, or conservative investors of any age.

Who should choose SCSS? Senior citizens (60+) who want a higher interest rate and tax benefits. Read our SCSS guide for full details.

Who should choose FD? Those who want flexible tenure and higher deposit limits. Compare rates in our FD interest rates guide.

Important Tips

1. Combine POMIS with other schemes — Invest in POMIS, SCSS, and PPF together for a diversified, safe portfolio
2. Use joint accounts wisely — A couple can invest ₹15 lakh in a joint MIS account plus ₹9 lakh each in individual accounts = ₹33 lakh total in POMIS
3. Link to savings account — Ensure your POMIS is linked to a post office savings account for automatic monthly credit
4. Track interest rate changes — Rates are revised quarterly; your existing investment rate stays locked for 5 years
5. Nominate someone — Always add a nominee to avoid complications for your family
6. Plan for taxes — Since there's no TDS, set aside money for tax payment if your income is taxable
7. Explore all post office schemes — Check our complete post office savings schemes guide for other options

Frequently Asked Questions (FAQs)

1. Can I open more than one POMIS account?

Yes, you can open multiple POMIS accounts. However, the total deposit across all your single accounts cannot exceed ₹9 lakh, and the total across joint accounts cannot exceed ₹15 lakh.

2. What happens if I don't withdraw the money after 5 years?

If you don't withdraw at maturity, your deposit will remain in the account and earn interest at the post office savings account rate (currently 4% p.a.). It will not earn the higher POMIS rate.

3. Can I transfer my POMIS account to another post office?

Yes, you can transfer your POMIS account from one post office to another anywhere in India. Visit your current post office and fill out a transfer request form.

4. Is POMIS interest rate fixed for the entire 5-year period?

No. The government can revise POMIS interest rates every quarter. However, in practice, the rate applicable at the time of your deposit remains effective for the full tenure. Check the latest notifications for confirmation.

5. Can a senior citizen open both POMIS and SCSS?

Yes, absolutely. A senior citizen can invest in both POMIS (up to ₹9 lakh single) and SCSS (up to ₹30 lakh). This is a great strategy to maximise safe monthly/quarterly income.

6. Is there any lock-in period?

Yes, the deposit is locked for 1 year. After 1 year, you can make a premature withdrawal with a penalty (2% before 3 years, 1% after 3 years).

7. Can NRIs invest in POMIS?

No. NRIs are not eligible to open a POMIS account. Only resident Indian citizens can invest in this scheme.

Conclusion

The Post Office Monthly Income Scheme (POMIS) is one of the safest ways to earn a guaranteed monthly income in India. With an interest rate of 7.4% per annum, zero risk, and government backing, it's ideal for retirees, homemakers, and anyone looking for stable returns.

While it doesn't offer tax deductions under 80C, the simplicity and reliability of POMIS make it a strong choice for conservative investors. Combine it with other post office schemes and fixed deposits for a well-rounded savings strategy.

Visit your nearest post office today to open your POMIS account and start earning monthly income!