Post Office MIS Calculator India: Complete Guide to Monthly Income Scheme Returns Updated February 2026
Key Takeaways
- Post Office MIS offers 7.4% annual interest paid monthly, ideal for regular income seekers
- Maximum investment: 9 lakh (single account) or 15 lakh (joint account)
- 5-year tenure with sovereign guarantee - zero risk investment
- Minimum investment only 1,000, accessible to all investors
- Interest is taxable, but senior citizens can claim 50,000 deduction under Section 80TTB
- Premature withdrawal allowed after 1 year with 2% penalty (before 3 years) or 1% penalty (after 3 years)
What is Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme designed for investors seeking a guaranteed monthly income from their savings. Ideal for retirees, senior citizens, and anyone wanting to supplement their regular income, POMIS offers attractive interest rates with complete capital protection.
Launched by the Ministry of Communications, Post Office MIS is available across all post offices in India. The scheme provides fixed monthly payouts based on your investment amount, making it perfect for creating a steady income stream in retirement or for meeting regular expenses.
Current POMIS Interest Rate 2025
7.4% per annum - Payable monthly
Single Account Max: 9 lakh | Joint Account Max: 15 lakh
Sovereign Guarantee: Government of India
Post Office Monthly Income Scheme: Key Features and Details
| Feature | Details |
|---|---|
| Interest Rate | 7.4% per annum |
| Tenure | 5 years |
| Minimum Investment | 1,000 |
| Maximum Investment | 9 lakh (single) / 15 lakh (joint) |
| Interest Payout | Monthly |
| Capital Protection | Sovereign guarantee |
| Premature Withdrawal | After 1 year with penalty |
| Tax Status | Interest fully taxable |
Types of POMIS Accounts
- Single Account: Individual account with maximum investment of 9 lakh
- Joint Account: Two adults (usually spouse) with maximum 15 lakh investment
- Nominee Facility: Mandatory nomination available for all accounts
Who Should Invest in Post Office MIS?
- Retirees seeking regular monthly income
- Senior citizens wanting guaranteed returns
- Risk-averse investors prioritizing capital safety
- Investors wanting to supplement existing pension or income
- Those planning for short-term goals (5 years)
How to Use Our Post Office MIS Calculator
Step 1: Enter Investment Amount
- Principal Amount: Amount you plan to invest (1,000 to 9 lakh for single account)
- Joint account holders can invest up to 15 lakh
Step 2: Interest Calculation
Post Office MIS calculates monthly interest as follows:
Monthly Interest = (Investment × 7.4%) ÷ 12
Annual Interest = Investment × 7.4%
Understanding the Results
- Monthly Interest: Amount credited every month
- Annual Interest: Total interest earned in a year
- 5-Year Total Interest: Cumulative interest over tenure
- Maturity Amount: Principal returned after 5 years
POMIS Interest Calculation: Monthly Income Returns
| Investment Amount | Monthly Interest | Annual Interest | 5-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 |
Based on 7.4% annual interest rate. Principal returned at maturity.
Monthly Payout Schedule
Interest is credited on the first working day of every month. For example, if you open account on January 15, first interest payment will be on February 1 and continue monthly.
POMIS vs SCSS vs Bank FD: Investment Comparison
| Parameter | POMIS | SCSS | Bank FD |
|---|---|---|---|
| Interest Rate | 7.4% | 8.2% | 6.5-7.5% |
| Payout Frequency | Monthly | Quarterly | Flexible (Monthly/Quarterly/Maturity) |
| Max Investment | 9L (15L joint) | 30 lakh | No limit |
| Tenure | 5 years | 5 years (extendable 3) | 7 days - 10 years |
| Age Limit | None | 60+ years | None |
| Section 80C Benefit | No | Yes (up to 1.5L) | Only 5-year FD |
| Safety | Sovereign | Sovereign | Bank risk (DICGC covered up to 5L) |
When to Choose Post Office MIS
- You need monthly income (not quarterly like SCSS)
- You are under 60 years (not eligible for SCSS)
- You want sovereign guarantee
- You prefer post office over banks
Benefits of Post Office Monthly Income Scheme
1. Guaranteed Monthly Income
Fixed monthly payouts ensure regular cash flow for meeting expenses or supplementing pension income.
2. Sovereign Guarantee
Government-backed scheme ensures complete capital protection. Zero risk of default.
3. Attractive Interest Rate
7.4% interest is higher than most bank FDs, providing better returns on your investment.
4. Flexible Investment Limits
Invest from as low as 1,000 up to 9 lakh (single) or 15 lakh (joint account).
5. Easy Access
Available across 1.5 lakh post offices nationwide. Simple account opening process.
6. Joint Account Facility
Open joint account with spouse for higher investment limit and shared ownership.
7. Nomination Facility
Mandatory nomination ensures smooth transfer to nominee in case of account holder's death.
POMIS Withdrawal and Maturity Rules
Maturity After 5 Years
At maturity, the principal amount is returned to the account holder. You can either:
- Withdraw the full amount
- Reinvest in a new POMIS account
- Invest in other post office schemes
Premature Withdrawal Rules
| Withdrawal Period | Penalty | Interest Paid |
|---|---|---|
| Before 1 year | Not allowed (except death) | No interest |
| After 1 year, before 3 years | 2% of principal | Interest - penalty |
| After 3 years, before 5 years | 1% of principal | Interest - penalty |
| Death of account holder | No penalty | Full interest till date |
Post Office MIS Taxation and TDS
Interest Taxation
Post Office MIS interest is fully taxable as per your income tax slab:
- Interest added to your total taxable income
- Taxed at your applicable tax rate (5%, 20%, or 30%)
- No special tax exemption for POMIS interest
TDS (Tax Deducted at Source)
- TDS at 10% applies if annual interest exceeds 40,000
- Senior citizens: TDS threshold is 50,000
- No TDS if you submit Form 15G/15H
- Submit PAN card to avoid 20% TDS
Section 80TTB Benefit for Senior Citizens
Senior citizens (60+) can claim deduction up to 50,000 under Section 80TTB on interest income from all sources (bank + post office deposits).
Eligibility and Account Opening for Post Office MIS
Who Can Open POMIS Account?
- Resident Indians: Any adult Indian citizen
- Minors: Through guardian (on attaining majority, account can be converted)
- Joint Account: Two adults (usually spouse)
- NRIs: Not eligible to open new accounts
Documents Required
- Account opening form
- Identity proof (Aadhaar card, PAN card, Passport)
- Address proof
- Passport size photographs
- PAN card copy (mandatory)
- Nomination form
How to Open Account
- Visit nearest post office with required documents
- Fill account opening form
- Provide nominee details
- Make initial deposit (minimum 1,000)
- Account opened immediately
Investment Strategies for Post Office MIS
Strategy 1: Maximize for Maximum Income
- Invest maximum 9 lakh (single) or 15 lakh (joint)
- Get highest possible monthly income (5,550 or 9,250)
- Ideal for retirees with substantial corpus
Strategy 2: Diversify with Other Schemes
- Combine POMIS with SCSS (if senior citizen)
- Use POMIS for monthly income needs
- Invest balance in PPF or RD for long-term growth
Strategy 3: Staggered Maturity
- Open multiple POMIS accounts at different times
- Ensure regular income even after one account matures
- Reinvest matured amounts in new accounts
Why Use Our Post Office MIS Calculator?
Key Features
- Accurate Calculations: Based on current 7.4% interest rate
- Monthly Breakdown: See exact monthly income
- Yearly Projection: 5-year total interest calculation
- Single vs Joint: Compare both account types
- Tax Estimation: Understand taxable income
- Free and Fast: Instant results, no registration required
How It Helps Investors
- Plan monthly budget with guaranteed income
- Compare POMIS with other income options
- Decide optimal investment amount
- Calculate tax liability on interest
- Plan for retirement income
Post Office MIS vs Global Monthly Income Schemes
India's Post Office Monthly Income Scheme is among the most accessible guaranteed-income instruments globally. Here is how it compares to similar products in other countries:
| Country | Product | Annual Return | Guarantee | Regulator |
|---|---|---|---|---|
| India | POMIS | 7.4% p.a. | Government of India | Ministry of Finance |
| USA | I-Bonds / Treasury notes | 4-5% (variable) | US Treasury | US Treasury, FINRA |
| UK | Premium Bonds / NS&I | Prize-based (avg ~4.4%) | Government of UK | NS&I / FCA |
| Australia | Term Deposits | 4-5% (market) | APRA-backed up to AUD 250k | APRA |
| Germany | Bundesschatzbriefe | 3-4% (market) | Federal Republic of Germany | BaFin |
POMIS stands out for its consistently high sovereign-guaranteed rate in an emerging market context, making it especially attractive for Indian retirees and conservative investors seeking predictable monthly income.
Frequently Asked Questions About Post Office MIS
Conclusion: Generate Guaranteed Monthly Income with Post Office MIS
Post Office Monthly Income Scheme is an excellent option for generating guaranteed monthly income with complete capital protection. With 7.4% annual interest paid monthly, sovereign guarantee, and flexible investment limits, POMIS provides a reliable income stream for retirees and risk-averse investors.
Our Post Office MIS Calculator helps you plan your monthly income accurately, showing exactly how much you can earn based on your investment amount. Whether you're planning for retirement or seeking regular income from your savings, POMIS offers a secure and predictable return.
Key advantages of Post Office MIS:
- Guaranteed monthly income at 7.4% rate
- Complete capital protection with sovereign guarantee
- Invest from 1,000 to 9 lakh (15 lakh joint)
- Simple account opening at any post office
- Nomination facility for smooth transfer to heirs
Use our calculator today to plan your monthly income!
Calculate Your Post Office MIS Returns Now
Use the calculator above to estimate your monthly income and start planning your regular income stream.
References and Government Resources
- India Post - Post Office MIS Account Opening
- National Savings Institute - Ministry of Finance
- Income Tax Department - Section 80TTB Guidelines
- National Portal of India - Government Schemes
- RD Calculator - Compare with Recurring Deposit
- SCSS Calculator - Senior Citizen Savings Scheme