Monthly income from the Post Office Monthly Income Scheme at 7.4%, with the ₹9 lakh single and ₹15 lakh joint limits applied.
Private · on device. Calculated in your browser, nothing you type is sent anywhere
Quick answer
POMIS pays simple interest every month for five years and returns the deposit at the end. ₹9 lakh (the single-account limit) at 7.4% pays ₹5,550 a month; a joint account can hold ₹15 lakh and pays ₹9,250 a month.
Rates as of 1 October to 31 December 2026 (Q3 FY 2026-27), notified 30 September 2026. Post Office Monthly Income Scheme: 7.4% a year. The government resets small savings rates every quarter; a deposit keeps the rate it was opened at, except PPF and SSY, which follow each quarter’s rate.
Interest is simple, paid every month into your savings account, and does not compound unless you reinvest it, for example in a recurring deposit. It is taxable at your slab. Closing before 1 year is not allowed; before 3 years 2% of the deposit is deducted, after 3 years 1%.
Formulas last verified 2026-10-10. Results are estimates, not financial advice. How we calculate.
The arithmetic is simple interest
Monthly income = deposit × rate ÷ 12
Nothing compounds inside the scheme: every month's interest is paid to your savings account and the deposit stays the same. That makes POMIS a payout product, closer to SCSS (for those over 60) than to a cumulative deposit.
Deposit
Monthly income
5-year interest
₹1,00,000
₹617
₹37,000
₹9,00,000 (single limit)
₹5,550
₹3,33,000
₹15,00,000 (joint limit)
₹9,250
₹5,55,000
The MIS plus RD habit
If you do not need the income yet, a common pairing is to send each month's payout into a Post Office recurring deposit, which compounds it quarterly. On ₹9 lakh, ₹5,550 a month in a 5-year RD at 6.7% grows to about ₹3.96 lakh instead of the ₹3.33 lakh paid out. If you want growth from the start, a cumulative FD or NSC does it in one step.
Frequently asked questions
How much monthly income does ₹9 lakh in POMIS give?
₹5,550 a month at 7.4%: ₹9,00,000 × 7.4% ÷ 12. Over five years that is ₹3,33,000 of interest, and the ₹9 lakh comes back at the end.
What are the POMIS deposit limits?
Minimum ₹1,000. Maximum ₹9 lakh in a single account and ₹15 lakh in a joint account of up to three adults, where each holder has an equal share. The limits apply across all your MIS accounts together, not per account.
Is POMIS interest taxable?
Yes, at your slab, and there is no deduction for the deposit under either regime. Because the interest is paid out rather than compounded, the monthly figure is also your taxable income from it.
Can I close a POMIS account early?
Not in the first year. Between one and three years, 2% of the deposit is deducted; between three and five years, 1%. The interest already paid is not taken back.
