Post Office Monthly Income Scheme (POMIS) 2026: Rate, Limits & Tax
Last verified: June 2026. Investments carry risk and rates/rules change — small-savings rates are reviewed quarterly. Verify current details before investing. General information, not investment advice.
If you want a fixed monthly income from a government-backed investment, the Post Office Monthly Income Scheme (POMIS) is built exactly for that. It pays interest every month at a sovereign-safe rate. Here is how it works in 2026.
Key features
| Feature | Detail |
|---|---|
| Interest rate | 7.4% p.a. (Apr–Jun 2026 quarter), paid monthly |
| Tenure | 5 years |
| Minimum investment | ₹1,000 (in multiples of ₹1,000) |
| Maximum | ₹9 lakh (single account); ₹15 lakh (joint) |
| Risk | Government-backed — very low risk |
Note: small-savings rates are reviewed every quarter, so confirm the current rate with India Post before investing.
How the monthly income works
You invest a lump sum; the scheme pays interest into your linked post-office or bank account every month. At the end of 5 years you get your principal back in full. Example: ₹9 lakh at 7.4% pays roughly ₹5,550 a month, with the ₹9 lakh returned at maturity.
Who it suits
Retirees and anyone wanting predictable monthly cash flow with capital safety. Senior citizens may also compare it with the Senior Citizens Savings Scheme and bank FDs.
Tax treatment
There is no 80C benefit on POMIS, and the monthly interest is taxable as “income from other sources” at your slab rate. Factor this into your net return.
Premature withdrawal
You can exit after 1 year with a small penalty (a percentage deduction that reduces if you exit later). Read the rules before locking in funds you may need.
Worked example
At the current 7.4% rate, the maximum ₹9 lakh in a single account pays ₹5,550 a month; a joint account with ₹15 lakh pays ₹9,250 a month. The principal is returned after five years. Interest is taxable at your slab rate, and TDS is not deducted, so declare it in your ITR.
Making it work in retirement
Pair POMIS with the Senior Citizens Savings Scheme (8.2%) for a higher guaranteed income, and use a systematic withdrawal plan from a debt or hybrid fund for flexibility and inflation protection.
Reviewed October 2026. Card and product terms change — confirm current details with the provider.
FAQs
What is the POMIS limit?
₹9 lakh in a single account and ₹15 lakh in a joint account.
What is the POMIS interest rate in 2026?
7.4% p.a. for the April–June 2026 quarter, paid monthly. Rates are reviewed quarterly.
What is the maximum I can invest?
₹9 lakh in a single account and ₹15 lakh in a joint account.
Is POMIS interest tax-free?
No. The monthly interest is taxable at your slab rate, and there is no 80C deduction.
What is the tenure?
5 years, with your principal returned at maturity.
