Post Office MIS Calculator
Calculate your monthly income from the Post Office Monthly Income Scheme (POMIS) over the fixed 5-year tenure.
How the Post Office Monthly Income Scheme works
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme that pays a fixed monthly interest on your lump-sum deposit. It is popular with retirees and anyone wanting a steady, predictable income stream with no market risk.
Key features to remember:
- 5-year lock-in: the scheme has a fixed 5-year tenure. The principal is returned in full at maturity.
- Monthly payout: interest is paid every month (simple interest), not reinvested or compounded.
- Deposit limits: maximum ₹9 lakh in a single account and ₹15 lakh in a joint account.
- Tax: there is no TDS on POMIS, but the interest you earn is fully taxable as per your income tax slab.
Annual = 9,00,000 × 0.074 = ₹66,600.
Monthly = 66,600 ÷ 12 = ₹5,550. Over 5 years total interest ≈ ₹3,33,000.
Annual = 15,00,000 × 0.074 = ₹1,11,000.
Monthly = 1,11,000 ÷ 12 = ₹9,250. Over 5 years total interest ≈ ₹5,55,000.
POMIS monthly income at a glance — 7.4%
Approximate monthly and annual income from a Post Office MIS deposit at the current 7.4% annual rate, for common deposit amounts.
| Deposit | Rate | Monthly Income | Total Interest (5 yrs) |
|---|---|---|---|
| ₹1,00,000 | 7.40% | ₹617 | ₹37,000 |
| ₹3,00,000 | 7.40% | ₹1,850 | ₹1,11,000 |
| ₹5,00,000 | 7.40% | ₹3,083 | ₹1,85,000 |
| ₹9,00,000 | 7.40% | ₹5,550 | ₹3,33,000 |
| ₹15,00,000 | 7.40% | ₹9,250 | ₹5,55,000 |
Illustrative figures. ₹9 lakh is the single-account ceiling and ₹15 lakh the joint-account ceiling. Use the calculator above for your exact deposit and rate.
Frequently asked questions
How is Post Office MIS monthly income calculated?
POMIS pays simple interest. The annual interest is the deposit multiplied by the annual rate, and the monthly income is that annual figure divided by 12. At the current 7.4% rate, a ₹9,00,000 deposit earns ₹66,600 a year, paid as ₹5,550 each month. The principal is not compounded — it stays fixed and is returned in full at the end of the 5-year tenure.
What is the maximum I can invest in POMIS?
You can invest up to ₹9 lakh in a single account and up to ₹15 lakh in a joint account. These limits apply across all your MIS accounts combined. The minimum deposit is ₹1,000 and amounts must be in multiples of ₹1,000.
What is the current Post Office MIS interest rate?
The POMIS interest rate is set by the Government of India and reviewed every quarter. The current rate used in this calculator is 7.4% per annum, but you can edit the rate field to match the prevailing rate when you invest.
Is there a lock-in period for POMIS?
Yes. The scheme has a fixed 5-year maturity. Premature withdrawal is allowed after 1 year, but a penalty applies — about 2% of the deposit if withdrawn between 1 and 3 years, and about 1% if withdrawn between 3 and 5 years.
Is POMIS interest taxable?
Yes. There is no TDS deducted on POMIS interest, but the interest you earn is fully taxable and must be added to your income and taxed at your applicable income tax slab rate. POMIS does not qualify for any deduction under Section 80C.
What happens to my principal at maturity?
Your entire principal is returned to you at the end of the 5-year tenure. Throughout the term you only receive the monthly interest payouts; the deposited amount itself is untouched and paid back in full on maturity.