The Post Office Monthly Income Scheme (POMIS) is designed for people who want a steady monthly income from a one-time investment. Simply enter the amount you plan to invest, choose whether the account is single or joint, and this calculator will instantly estimate your monthly payout, total income over the 5-year tenure, and the principal amount you receive back at maturity. Since the scheme pays interest every month rather than reinvesting it, POMIS remains one of the most popular low-risk income options offered by India Post.
| Year | Payout Received That Year | Cumulative Payout Received |
|---|
Unlike fixed deposits that often reinvest interest, the Post Office Monthly Income Scheme (POMIS) pays your earnings directly every month, providing a predictable stream of income throughout the entire 5-year tenure. Your original investment remains unchanged and continues to earn interest at the fixed rate applicable when the account is opened. Since the monthly interest is paid out separately, there is no compounding within the scheme itself. At maturity, you receive back the full amount you originally invested, while all the monthly interest payments would already have been credited to your nominated Post Office Savings Account or linked bank account over the five-year period.
What Is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme designed for people who want a fixed monthly income from a one-time investment. Instead of locking away your earnings until maturity, the scheme pays interest to you every month, making it a popular choice among retirees, pensioners, and conservative investors seeking predictable cash flow.
Once you invest in a POMIS account, the interest rate remains fixed for the entire 5-year tenure. Your monthly payout is calculated on the amount invested and is credited regularly to your linked Post Office Savings Account or bank account. Since the scheme is backed by the Government of India, it is considered one of the safest income-oriented investment options available to retail investors.
At the end of the five-year period, you receive your original investment amount back in full, while all monthly interest payments would already have been paid to you during the tenure. This makes POMIS suitable for investors who prioritise stable income over long-term wealth accumulation.
Single Account vs Joint Account: Which Option Should You Choose?
The Post Office Monthly Income Scheme allows investors to open either a Single Account or a Joint Account, depending on their financial goals and investment requirements. Choosing the right account structure can help maximise the amount you can invest while ensuring regular monthly income.
A Single Account can be opened by one eligible individual and currently allows investments of up to ₹9 lakh. All monthly interest payments and the maturity amount belong solely to the account holder.
A Joint Account can be opened by up to three adults together and permits a combined investment of up to ₹15 lakh. For investment limit calculations, the deposited amount is divided equally among all account holders, regardless of who contributed the funds.
For example, if two individuals open a joint account with ₹15 lakh, each person is considered to have invested ₹7.5 lakh. Since the individual investment limit is ₹9 lakh, both account holders can still invest an additional ₹1.5 lakh each through separate single accounts if they wish.
A joint account is often preferred by spouses and family members who want to generate a higher monthly income while staying within the investment limits prescribed under the scheme.
How to Read the Calculator Results
Start by selecting either a Single Account or Joint Account. The calculator automatically adjusts the maximum investment limit based on your selection. Next, enter your planned investment amount or move the slider to the desired value.
The results section displays four important figures:
- Investment Amount: The total amount deposited into the POMIS account.
- Monthly Income: The fixed interest amount expected to be credited every month.
- Total Income Over 5 Years: The combined interest you may receive during the entire tenure.
- Maturity Amount: The principal amount returned at the end of the 5-year term.
You can also view the detailed yearly payout summary to understand how much income the scheme is expected to generate each year throughout the investment period.
Important Rules and Tax Implications
The Post Office Monthly Income Scheme has a fixed tenure of 5 years. Premature closure is allowed, but only after the account has completed one year from the date of opening.
- If the account is closed after 1 year but before 3 years, a deduction of 2% of the principal amount is applied.
- If the account is closed after 3 years but before maturity, the deduction reduces to 1% of the principal amount.
- No premature closure is permitted within the first year of opening the account.
If the account is not closed immediately after maturity, the balance may continue to remain in the account under the rules prescribed by India Post. However, investors should monitor the maturity date carefully and submit closure instructions on time to avoid earning a lower rate than expected.
Unlike schemes such as the Public Provident Fund (PPF), National Savings Certificate (NSC), or Senior Citizens Savings Scheme (SCSS), investments made under POMIS do not qualify for tax deduction under Section 80C of the Income Tax Act.
The monthly interest received from POMIS is fully taxable and must be reported while filing your income tax return. Although India Post does not generally deduct TDS on monthly payouts, the interest remains taxable according to the investor’s applicable income tax slab.
POMIS Next to SCSS
| Feature | Post Office MIS (POMIS) | Senior Citizens Savings Scheme (SCSS) |
|---|---|---|
| Interest Rate | 7.4% per annum | 8.2% per annum |
| Interest Payout | Monthly | Quarterly |
| Eligibility | Any eligible Indian resident adult | Senior citizens and eligible retirees |
| Maximum Investment | ₹9 lakh (Single) / ₹15 lakh (Joint) | ₹30 lakh per individual |
| Section 80C Tax Benefit | Not Available | Available up to the prescribed limit |
| Primary Purpose | Regular monthly income | Higher income for retirees |
Both schemes are backed by the Government of India and are popular among conservative investors seeking predictable returns. However, they are designed for different audiences and financial goals.
POMIS focuses on providing a fixed monthly income stream and is available to eligible adults regardless of age. This makes it useful for individuals who want regular cash flow without taking market-related risks.
SCSS, on the other hand, is specifically designed for senior citizens and eligible retirees. It currently offers a higher interest rate, a significantly larger investment limit, and tax benefits under Section 80C, making it one of the most attractive retirement-oriented savings schemes available.
If your priority is a monthly payout and you do not qualify for SCSS, POMIS can be a suitable option. If you are eligible for SCSS, many retirees prefer to utilise their SCSS limit first because of its higher interest rate and additional tax advantages before considering other fixed-income schemes.
Frequently Asked Questions
Tabassum is a government document researcher and writer with over 5 years of experience exclusively dedicated to tracking and simplifying Central and State Government document processes across India. She has researched and published detailed guides on 100+ government documents and certificates – including Aadhaar Card, PAN Card, Ration Card, Domicile Certificate, and Birth Certificate – covering all states and the Central Government, helping lakhs of Indian citizens successfully complete their paperwork in simple, easy-to-understand language.