If you've been looking for an investment that pays you every single month — without touching the stock market — the Post Office Monthly Income Scheme (POMIS) might be exactly what you need. It's government-backed, low-risk, and the payout hits your account like clockwork. For retirees especially, that kind of predictability is hard to put a price on. Here's everything you need to know about POMIS in 2026 — rates, limits, taxes, and whether it actually makes sense for you.
The Post Office Monthly Income Scheme is a savings plan run by India Post. You deposit a lump sum once, and in return, you get a fixed monthly interest payout for five years. Simple as that. No market risk. No NAV tracking. No waiting for dividends that may or may not come. The interest is credited directly to your Post Office Savings Account every month — automatically. It's primarily used by retirees, homemakers, and conservative investors who want their savings to do something every month rather than just sit there.
The current POMIS interest rate is 7.4% per annum, payable monthly. This rate has been stable through every quarter of FY 2025–26, and it applies for the full 5-year tenure once your account is opened — meaning even if the government revises rates later, your locked-in rate doesn't change. That's worth repeating: once you open the account, your 7.4% is fixed. Future rate cuts don't affect you.
Period
Interest Rate (p.a.)
April 2026 – June 2026
7.40%
January 2026 – March 2026
October 2025 – December 2025
July 2025 – September 2025
April 2024 – March 2025
January 2024 – March 2024
October 2023 – December 2023
April 2023 – June 2023
January 2023 – March 2023
7.10%
October 2022 – December 2022
April 2020 – September 2020
6.60%
January 2020 – March 2020
7.60%
The rate touched a low of 6.6% during the pandemic and has since settled firmly at 7.4% — which is decent for a completely risk-free, government-guaranteed instrument.
Key Features
Feature
Details
Scheme Type
Government-backed savings via India Post
Interest Rate
7.4% per annum
Interest Payout
Monthly
Tenure
5 years
Minimum Deposit
₹1,000
Maximum – Single Account
₹9 lakh
Maximum – Joint Account
₹15 lakh
Risk Level
Low
Nomination
Available
Transferability
Yes, across post offices
Account Type
Single or joint (up to 3 adults)
The POMIS eligibility criteria are straightforward. Any resident Indian adult can open one. Minors can also participate — through a guardian — and children above the age of 10 can open an account in their own name. Joint accounts are allowed with up to three adult holders. What you cannot do: NRIs are not eligible to open a new POMIS account. If you hold an existing account and later become an NRI, the account must be closed.
Eligibility
Status
Resident adult individual
✅ Yes
Joint holders (up to 3 adults)
Minor through guardian
Minor above 10 years (own name)
NRIs
❌ No
The POMIS investment limit in 2026 remains:
Single account: Maximum ₹9 lakh
Joint account: Maximum ₹15 lakh
Minimum deposit: ₹1,000 (in multiples of ₹1,000)
One important thing — if you open multiple single accounts, the combined total across all of them still cannot exceed ₹9 lakh. The limit is per individual, not per account.
At 7.4% per annum, the monthly payout works out to roughly ₹617 per lakh invested. Here's what that looks like across different investment amounts:
Investment Amount
Approx. Monthly Payout at 7.4%
₹1 lakh
₹617
₹2 lakh
₹1,233
₹5 lakh
₹3,083
₹9 lakh (max – single)
₹5,550
₹15 lakh (max – joint)
₹9,250
A couple investing the full ₹15 lakh in a joint POMIS account can expect around ₹9,250 every month for five years. That's not a bad baseline income — especially if it's supplementing a pension or rental income.
Capital is fully protected. Since this is a government-backed Post Office savings scheme, your principal is not at any risk. Whatever you put in, you get back at maturity.
Predictable cash flow. The interest arrives every month — not quarterly, not annually. You know exactly what's coming in.
Low entry point. You can start with just ₹1,000. Most people go in significantly higher, but the option is there.
Multiple accounts allowed. You can hold more than one POMIS account — handy if you want to stagger maturity dates. Just remember the ₹9 lakh aggregate cap.
Joint account option. Up to three adults can open a joint account together, accessing the higher ₹15 lakh limit. Each joint holder has equal ownership rights.
Nomination facility. You can name a family member as nominee. If something happens to you during the account tenure, the nominee can claim the corpus without hassle.
Reinvestment option. When the 5-year term ends, you can reinvest the maturity amount into a fresh POMIS account at the then-prevailing rate.
Fund routing to RD. Want to grow your monthly interest instead of spending it? You can give standing instructions to redirect that interest into a Post Office Recurring Deposit — turning your POMIS payout into a secondary savings vehicle.
The Post Office Monthly Income Scheme does not qualify for tax deduction under Section 80C. The principal amount you invest cannot be claimed as a deduction when filing your ITR.
The monthly interest, however, is fully taxable. It gets added to your total income for the year and taxed as per your applicable income tax slab. If you're in the 30% bracket, every rupee of POMIS interest is taxed at 30%. TDS provisions apply, similar to interest earned on fixed deposits.
One silver lining: under Section 80TTA, interest earned from Post Office Savings Accounts (the account where your POMIS payout lands) is deductible up to ₹10,000 per year. It's a small but real benefit.
The POMIS account has a 5-year lock-in, but premature withdrawal is allowed after the first year — with a penalty:
Withdrawal Timing
Penalty
Before 1 year
Not allowed
After 1 year, before 3 years
2% deducted from principal
After 3 years, before 5 years
1% deducted from principal
To close early, submit the prescribed application form along with your passbook at your Post Office.
The process is simpler than most people expect:
Open a Post Office Savings Account, if you don't already have one — this is where your monthly interest will be credited.
Collect the POMIS application form from your nearest post office (or download it from the India Post website).
Submit the filled form with photocopies of your ID proof, address proof, and two passport-size photographs. Carry the originals for verification.
Get nominee or witness signatures on the form, as applicable.
Make the initial deposit — by cash or cheque. If paying by cheque, the date on the cheque becomes the account opening date.
Collect your account details from the post office executive once the account is processed.
That's it. No complicated KYC loops. No waiting weeks for approval.
For retirees and senior citizens who want a stable monthly income from their savings, the Post Office Monthly Income Scheme is a genuinely solid option. It's government-backed, carries no market risk, and pays out every month — which matters when you're living on a fixed income.
That said, seniors should also look at the Senior Citizens Savings Scheme (SCSS) before deciding. SCSS currently offers a slightly higher interest rate and allows a larger maximum deposit (up to ₹30 lakh for a couple), which makes it worth comparing. The two schemes are not mutually exclusive. Many retirees use both — SCSS for the higher rate and higher limits, POMIS for supplementary monthly income — spreading their corpus across multiple government-backed instruments.
POMIS
Monthly Income Mutual Fund
Monthly Income Insurance Plan
Returns
7.4% p.a., guaranteed
Market-linked, not guaranteed
Depends on insurer, not fixed
Risk
Moderate to high
Low to moderate
Liquidity
After 12 months (with penalty)
Exit load may apply
High surrender charges
Investment Limit
₹9L (single), ₹15L (joint)
No upper limit
Tax on Returns
Taxable as per slab
Taxable on dividends/gains
Annuity income taxable
Added Benefit
Capital safety
Potential appreciation
Life insurance cover
If guaranteed returns and peace of mind are your priority, POMIS wins comfortably. If you can tolerate some volatility for potentially higher returns, a debt mutual fund might make more sense. The insurance-linked plan is a different category altogether — don't use it primarily as an income product.
The Post Office Monthly Income Scheme is one of the most straightforward income-generating investments available in India. Fixed 7.4% interest. Monthly payouts. Government backing. Five-year tenure with a clear exit route.
It won't make you rich. It isn't meant to. But for anyone who wants their savings to generate a reliable, predictable monthly income — without worrying about market cycles — POMIS does exactly what it promises.
Q: What is the POMIS interest rate for April–June 2026?
A: The POMIS interest rate for Q1 FY 2026–27 (April to June 2026) is 7.4% per annum, paid out monthly. This rate has remained unchanged since April 2023. Once you open the account, this rate is fixed for the full 5-year tenure regardless of future revisions.
Q: Can I open a POMIS account online through India Post?
A: As of now, POMIS accounts need to be opened in person at a post office branch. You must submit the application form, KYC documents, and initial deposit physically. However, India Post does offer net banking and mobile banking through CBS-enabled post offices for managing existing accounts.
Q: What happens to POMIS interest if I don't withdraw it monthly?
A: The monthly interest is automatically credited to your linked Post Office Savings Account. If you don't withdraw it, the interest simply accumulates in your savings account — it does not compound within the POMIS account itself. To make it work harder, set up standing instructions to transfer it to a Post Office RD each month.
Q: Is POMIS better than a bank FD for monthly income in 2026?
A: For guaranteed monthly income, POMIS offers 7.4% p.a. with full government backing — which is competitive with most major bank FDs at similar tenures. The main trade-off: bank FDs allow larger deposits (no ₹9 lakh cap) and sometimes offer slightly higher rates for senior citizens. POMIS wins on capital safety; bank FDs win on flexibility.
Q: Can I transfer my POMIS account if I relocate to another city?
A: Yes. Your POMIS account can be transferred to any post office branch across India at no extra cost. Just submit a transfer request at your current post office, and the account moves seamlessly — with no interruption to your monthly payouts.
Q: What is the penalty for closing a POMIS account before 5 years?
A: Premature closure isn't allowed within the first year. After 1 year but before 3 years, a 2% deduction is applied on your principal. Between 3 and 5 years, the penalty drops to 1%. Submit the prescribed form with your passbook at the post office to initiate early closure.
Q: Can a minor open a POMIS account?
A: Yes. A minor below 10 years can open a POMIS account through a guardian. A minor above 10 years can open the account in their own name. When the minor turns 18, the account gets converted to a regular adult account with the applicable limits.
Q: Is POMIS interest taxable in India?
A: Yes — the monthly interest earned from POMIS is fully taxable and added to your total income for the year. It is taxed at your applicable income tax slab rate. There is no TDS-free threshold as seen in PPF or Sukanya Samriddhi Yojana. However, interest on the linked Post Office Savings Account is deductible up to ₹10,000 under Section 80TTA.
Q: Can I reinvest my POMIS maturity amount in the same scheme?
A: Yes. After the 5-year term ends, you can reinvest the full maturity amount into a new POMIS account at the interest rate prevailing at that time. There is no automatic rollover — you need to visit the post office and submit a fresh application.
Q: What is the maximum monthly income possible from POMIS in 2026?
A: At the current rate of 7.4% p.a., the maximum monthly income from a single POMIS account (capped at ₹9 lakh) is approximately ₹5,550 per month. For a joint account (capped at ₹15 lakh), the maximum monthly payout comes to approximately ₹9,250.
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