Monthly Income Scheme Calculator

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Post Office Monthly Income Scheme (MIS) Calculator

Calculate your monthly payout from POMIS — 7.4% p.a., Q1 FY 2026-27

Amount Invested₹5,00,000
Monthly Payout₹3,083
Annual Interest Income₹37,000
Total Interest (5 years)₹1,85,000
Principal Returned at Maturity₹5,00,000
Principal — 73%
Total Interest — 27%

Post Office Monthly Income Scheme (POMIS) — 2026 Complete Guide

The Post Office Monthly Income Scheme (MIS) is one of India's most popular income-generating investment products. You invest a lump sum once, and every month the post office credits interest directly to your savings account. No market risk. No surprises. Just a steady monthly cheque — or rather, a monthly transfer — for 5 years, after which your full principal is returned.

For retirees, homemakers, and anyone building a monthly income stream, POMIS is the go-to product. The current rate for Q1 FY 2026-27 (April–June 2026) is 7.4% per annum, paying ₹5,550 per month on a maximum single-account investment of ₹9 lakh.

POMIS Key Parameters (2026)

ParameterDetails
Interest Rate (Q1 FY 2026-27)7.4% p.a., paid monthly; reviewed quarterly
Minimum Deposit₹1,000 (in multiples of ₹1,000)
Maximum — Single Account₹9,00,000 (₹9 lakh)
Maximum — Joint Account₹15,00,000 (₹15 lakh; split 50:50)
Tenure5 years (fixed, no flexibility)
PayoutMonthly, starting 1 month after opening
80C deductionNot available
Tax on interestFully taxable at income slab rate
NRI eligibilityNot eligible
MinorsAbove 10 years can open independently; below 10 by guardian

How Much Will You Earn? (₹9 Lakh Maximum Scenario)

InvestmentMonthly IncomeAnnual Income5-Year Total Interest
₹1,00,000₹617₹7,400₹37,000
₹2,00,000₹1,233₹14,800₹74,000
₹5,00,000₹3,083₹37,000₹1,85,000
₹9,00,000 (single max)₹5,550₹66,600₹3,33,000
₹15,00,000 (joint max)₹9,250₹1,11,000₹5,55,000

Joint Account Strategy — Double Your Income

A couple (both resident Indians) can open a joint MIS account with a maximum of ₹15 lakh. Each partner's share is considered 50:50 (₹7.5 lakh each) for individual limit calculation. This means both partners can also each hold their own single account with ₹9 lakh — but their share in the joint account counts towards their individual ₹9 lakh limit. A single person's effective maximum across all accounts (single + share in joint) is ₹9 lakh.

Premature Withdrawal Rules

Withdrawal TimingPenalty
Before 1 yearNot allowed
After 1 year, before 3 years2% deducted from principal
After 3 years, before 5 years1% deducted from principal
On maturity (5 years)Full principal returned, no penalty

What Happens If You Don't Collect Monthly Interest?

This is a critical rule many investors miss: if you don't withdraw your monthly interest payout, it simply sits in your post office savings account. It does not earn any additional interest — no compounding on unclaimed interest. The interest must be manually reinvested (e.g., into an RD or FD) if you want it to work harder. This is fundamentally different from compound interest products where interest automatically compounds.

💡 Power Move: Pair POMIS with a Post Office Recurring Deposit. Invest ₹9 lakh in MIS → receive ₹5,550/month → automatically route that into an RD at 6.7% p.a. (compounded quarterly). By doing this, you effectively compound your MIS interest instead of letting it sit idle. Over 5 years, you can earn significantly more than the flat 7.4% suggests.

Frequently Asked Questions

Is the monthly interest from POMIS taxable?
Yes, fully taxable. Interest from POMIS is added to your total income and taxed at your applicable slab rate. No TDS is deducted at source by India Post, but you must declare this income in your Income Tax Return (ITR). There is also no Section 80C deduction available on POMIS investments.
Can I extend POMIS after 5 years?
Yes. You can reinvest (renew) the POMIS account for another 5-year term at the prevailing interest rate at the time of renewal. The rate may differ from your original rate. Apply within 1 year of maturity — after that, the funds earn only post office savings rate (currently ~4%).
POMIS vs Bank FD with monthly payout — which is better?
POMIS at 7.4% (sovereign guaranteed, no upper limit on safety) vs major bank 5-year FD with monthly payout at 6.5–7% (DICGC insured up to ₹5 lakh). For amounts under ₹5 lakh, both are comparably safe, but POMIS may offer slightly higher rates. For amounts above ₹9 lakh per person, you'd need to split across banks anyway for safety, while POMIS has a ₹9 lakh cap per individual.
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