Post Office Monthly Income Scheme (POMIS) – Interest Rate, Benefits, Eligibility & Calculator (2026)

 

 

The Post Office Monthly Income Scheme works a bit like a prepaid salary. You put in a lump sum once and it responds with a fixed monthly payout, no follow ups required. In a world hooked on fast trades and instant returns, why does something this steady still matter? Because monthly expenses do not arrive with drama. They arrive on schedule - rent, groceries, medicine, small comforts. Would it not make sense for income to follow the same pattern?

POMIS appeals to people who like knowing what next month looks like. Retirees use it to replace a missing paycheck. Families use it to smooth household cash flow. Conservative investors use it as a financial anchor when everything else feels slippery. What role could predictable monthly income play in your own setup?

Curious about the 2026 interest rate, eligibility rules, tax treatment, or how much monthly income your investment can generate using the calculator? The sections below unpack everything, without the noise.
 

What is the Post Office Monthly Income Scheme?

More people are looking for ways to earn a dependable monthly income from their savings. The Post Office Monthly Income Scheme, often called POMIS, is one of those options that keeps things simple and solid. It is a savings plan backed by the Government of India. You make a one-time deposit and then receive a fixed amount of interest every month for the next five years. There’s no guesswork about market ups and downs. Once you invest, the interest you get doesn’t shift because of stock market swings. It’s regular, predictable and easy to plan around.

You can open an account at any post office in the country. It doesn’t matter if you’re planning for retirement, you want a steady income alongside your job, or you simply want a safer corner for your savings. The idea is straightforward: deposit money today. Then, every month for five years, the scheme pays you interest. If you want to keep earning after five years, you can renew it again at the then-current interest rate.
 

Core Features and Benefits of the Post Office MIS Scheme

There’s a quiet comfort in knowing your money is safe. That’s exactly what POMIS aims to give you. Here are the features most people find helpful:

• Monthly Income You Can Count On
  Once your account starts, you get interest every month. That is what makes this scheme stand out. You don’t have to wait until maturity to see returns.
• Government Backing
  Since this is a government scheme, your capital is protected. There are no wild swings or sudden loss of value. This makes it a good choice for people who want safety first.
• Simple Eligibility
  Any resident Indian above 18 can open an account. You can also open an account for a minor above 10 years with a guardian, or jointly with up to three adults.
• Low Minimum and Clear Maximum
  You don’t need a huge sum to begin. There’s a modest minimum and the government sets a clear cap on how much you can invest.
• Flexible Payouts
  Interest can be paid straight into your bank account or into a linked post office savings account. You decide what works best.
• Reinvestment Choice
  When five years are over, you can either take your money back or put it into the scheme again. That gives you room to plan based on what your life needs at the time.

All this adds up to a plan that feels straightforward. You know when you start how the next few years will look. That predictability is the real benefit here.
 

Latest Post Office MIS Interest Rate (2026)

Interest rates on small savings schemes like POMIS are set by the government and checked every few months. For the first quarter of 2026, the Post Office Monthly Income Scheme rate is 7.4% per year, paid out month by month. This rate has been kept steady from the previous quarters. It reflects a decision by the Finance Ministry to hold rates where they are for now.

What that means in practical terms is simple. If you invest a lump sum under this scheme, the government pays you interest every month at the annual rate of 7.4%. That money lands in your account each month, giving you a clear picture of how much you’ll receive. The rate has stayed the same through most of the past year and is expected to remain stable unless there’s a fresh review from the Finance Ministry.

This isn’t a high-risk earnings game. It’s a choice for people who want stable, regular returns rather than chasing higher but unpredictable gains. And since the payment comes monthly, you can use it to help with bills, living costs, or even reinvest in other plans. That mix of reliability and regular cash has made it a favourite for retirees and anyone who wants a dependable side income from their savings.
 

Minimum & Maximum Investment Limit

One reason the Post Office Monthly Income Scheme works for many people is that it doesn’t demand a huge starting amount. You can step in with a reasonable sum and still get a steady monthly payout. Here’s how the limits look in 2026:

You need at least Rs. 1,000 to open a Post Office MIS account. After that, you can invest in multiples of Rs. 1,000.

The maximum limit depends on how you open the account.

• If it’s a single account, the cap is Rs. 9 lakh.
• If it’s a joint account, the cap goes up to Rs. 15 lakh.

In a joint account, the investment is split equally among all holders. So even though the limit is higher, each person’s share is clearly defined.

And yes, you can open more than one MIS account. But the total investment across all MIS accounts cannot cross these limits. The post office tracks this carefully. For many investors, this balance works well.

Monthly Income Example

Numbers make things clearer. So let’s see how monthly income actually works under the Post Office MIS, assuming the 2026 interest rate of 7.4% per year.

The interest is paid every month. Not quarterly. Not yearly. That regular cash flow is what draws people in.

At the end of five years, you get back your original investment amount. The monthly income stops, but your capital comes back intact. You can then withdraw it, reinvest it, or move it somewhere else based on your needs at that time.
 

Comparison Table (2026 Rates)

To really understand where Post Office MIS stands, it helps to see it next to other popular low-risk savings options. Below is a 2026 comparison based on the latest available rates:

 

If your priority is steady monthly income, few government-backed options do it as cleanly. And for people who want safety without locking money away forever, the five-year tenure feels manageable.
 

Who Should Invest in Post Office MIS?

Not every investment is for everyone. The Post Office Monthly Income Scheme fits a very specific need. If that need sounds familiar, this scheme usually makes sense:

• Retirees who want steady cash flow: Monthly interest helps cover everyday expenses without touching savings again and again.
• People close to retirement: If you’re shifting away from risk and want something calmer, MIS offers stability without locking money forever.
• Those who dislike market ups and downs: This is because there are no tracking charts, no worrying about headlines and the return stays fixed for the full term.
• Families planning a predictable income stream: Some use it to support parents or manage regular household costs.
• Investors diversifying their savings: MIS works well alongside insurance, mutual funds, or long-term plans. It balances things out.
   

Eligibility Criteria

The eligibility rules are simple:

• You must be a resident Indian
• You must be 18 years or older to open an account on your own
• Joint accounts are allowed with up to three adults
• A minor above 10 years can have an account, managed by a guardian
• There is no upper age limit, which is why many seniors use this scheme

One important thing to remember: even if you open multiple accounts, the total investment across all Post Office MIS accounts cannot exceed the prescribed limits. The post office checks this closely.
 

How to Open a Post Office MIS Account

Opening a Post Office MIS account is not fully digital. Here’s how it actually works in 2026:

Steps to Apply for the Post Office MIS Scheme Online

Let’s be clear first. You cannot open a Post Office MIS account completely online as of now. But some parts are digital.

• You can download the MIS application form from India Post’s website    
• If you already have a post office savings account, the monthly interest can be credited digitally
• Some post offices allow appointment booking online, depending on location
• So while the final account opening still needs a visit, the prep work can be done at home.

Steps to Apply for the Post Office MIS Scheme Offline

This is the main route most people follow:

• Visit your nearest post office
• Ask for the Post Office MIS application form
• Fill in basic details like name, address, account type and nominee
• Choose single or joint account, depending on your plan
• Submit KYC documents
  • Aadhaar
  • PAN
  • Address proof
  • Deposit the investment amount
  • Cash
  • Cheque
  • Demand draft
• Collect the account passbook
• Once the account is active, monthly interest starts flowing automatically.
   

Documents Required to Open a POMIS Account

Opening a Post Office MIS account doesn’t involve paperwork overload. You’ll need a few standard documents:

• Account opening form: You can get it at the post office or download it in advance.
• Identity proof: Aadhaar card, PAN card, passport, voter ID, or driving licence.
• Address proof: Aadhaar, passport, utility bill, or bank statement.
• PAN card: Mandatory, especially for tax reporting.
• Photographs: Recent passport-size photos.
• Cheque or cash: For the initial deposit amount.

If you already have a post office savings account, things move faster. The monthly interest can be directly credited there, which saves effort later.
 

Post Office MIS Calculator

A Post Office MIS calculator helps you answer one basic question - “How much will I get every month?”

The logic is simple. You enter the amount you plan to invest and the calculator shows your monthly income based on the current interest rate. Here’s how people usually use it:

• Enter your investment amount
• The calculator applies the 7.4% annual interest rate (2026)
• It divides the interest into monthly payouts
• You see your exact monthly income

For example, if you invest Rs. 6 lakh, the calculator quickly shows that you’ll receive around Rs. 3,700 per month. That clarity helps with planning. You know what part of your expenses this income can cover. Many investors use the calculator before deciding how much to put in. It helps match expectations with reality.
 

Taxation on Post Office MIS

This is where people need to pause and pay attention. The interest you earn from Post Office MIS is fully taxable. It is added to your income and taxed according to your income tax slab. A few important points to remember:

• No tax deduction at source (TDS)
• Interest must be declared
• No Section 80C benefit

Because of this, many investors pair MIS with tax-efficient products or insurance plans. At SMC Insurance, this kind of balancing act comes up often. Together, they work better.
 

Premature Withdrawal Rules & Penalty

Sometimes plans change. If you need your money before the five-year term ends, the scheme allows early withdrawal. But there are penalties. Here’s how it works:

Early withdrawal is possible, but it’s clearly discouraged. If you stay invested for the full term, you get steady income and your full principal back. That’s why most people put in money they won’t need urgently. Emergency funds and insurance handle surprises. MIS handles calm, predictable income.
 

Post Office MIS vs Bank FD

People often weigh Post Office MIS against a bank fixed deposit. But they serve different purposes. Here’s a clear side-by-side view:

MIS is built for monthly income and FDs are better for flexibility and short-term parking.
 

Post Office MIS vs Other Saving Schemes of the Post Office

The post office offers several savings options. Each one has a different role. MIS is just one piece of that puzzle. Here’s how it compares:

 

Post Office Monthly Income Scheme for Senior Citizens

Both the POMIS and Senior Citizen Savings Scheme (SCSS) are government-backed and are popular among retirees. But they work differently:

So which is better?

• If you want higher interest and tax benefits, SCSS usually makes more sense.
• If you want monthly income and a lower entry amount, MIS feels easier.

Many senior citizens split money between both. One gives higher returns while the other gives smoother monthly cash flow. Together, they balance each other well.
 

Disadvantages of POMIS

No scheme is perfect. MIS has limits and it’s better to see them clearly.

• There’s no tax relief on either the investment or the interest.
• The income is stable, but growth is limited.
• Five years is manageable, but not ideal if you may need funds early.
• High-net-worth investors may find the limits restrictive.
• You still need to visit a post office.
   

Summing Up

Post Office MIS offers certainty. If you want a steady monthly income, minimal risk, and government backing, this scheme does its job well. You put in a lump sum once. And every month, you get a fixed payout for five years. No market anxiety and no surprises.

But it works best when used for the right reason. It’s not meant for aggressive growth or tax saving - it’s meant for stability. For many people, especially retirees or those planning regular expenses, MIS fits neatly into the bigger picture.

Disclaimer: The information provided on this platform is intended for general awareness and educational purposes. While every effort is made to ensure accuracy, some details may change with policy updates, regulatory revisions, or insurer-specific modifications. Readers should verify current terms and conditions directly with relevant insurers or through professional consultation before making any decision.

All views and analyses presented are based on publicly available data, internal research, and other sources considered reliable at the time of writing. These do not constitute professional advice, recommendations, or guarantees of any product’s performance. Readers are encouraged to assess the information independently and seek qualified guidance suited to their individual requirements. Customers are advised to review official sales brochures, policy documents, and disclosures before proceeding with any purchase or commitment.