🇮🇳 Post Office Monthly Income Scheme Calculator
7.4% annual, paid monthly, government-backed.
Monthly payout
Estimates for planning only, not financial advice.
The Post Office Monthly Income Scheme pays 7.4 percent a year in monthly installments on deposits up to ₹9 lakh single or ₹15 lakh joint, with the principal returned after 5 years. Deposit the ₹9 lakh single maximum and you receive ₹5,550 every month, ₹66,600 a year, ₹3.33 lakh over five years, plus your ₹9 lakh back. It is one of India's simplest retiree income machines.
How to Use This Calculator
Enter your deposit and pick single or joint account type. The calculator shows the monthly payout, annual interest, five-year total, and the principal returned at maturity.
Enter the deposit within the limit for your account type. Multiples of ₹1,000.
Read the monthly payout. Interest is paid monthly, not compounded, by design.
Compare with the PPF calculator if growth matters more than monthly income.
The POMIS Payout Formula
Interest is credited monthly to your linked savings account; it does not compound inside MIS. Premature closure is allowed after 1 year with a penalty: 2 percent of principal if closed before 3 years, 1 percent after. The rate is reset quarterly by the government, so confirm the current rate before investing.
Worked Example
Single account, ₹9,00,000 deposit at 7.4 percent. Monthly payout: 900,000 x 0.074 / 12 = ₹5,550. Annual: ₹66,600. Five-year total interest: ₹3,33,000. At maturity you receive the ₹9,00,000 principal back, for total receipts of ₹12,33,000. A joint ₹15 lakh deposit pays ₹9,250 a month.
Reading Your Result
POMIS is an income product, not a growth product: the 7.4 percent is simple interest paid out, and inflation quietly taxes the principal's purchasing power over five years. It suits retirees who need predictable monthly cash, not young investors who should compound.
My rule: pair it, don't park everything in it. MIS covers the monthly bills; keep growth assets (NPS, equity) working alongside so the corpus does not shrink in real terms. Note the tax treatment: MIS interest is fully taxable at your slab rate, unlike PPF's tax-free status, so the post-tax yield for a 30 percent bracket investor is closer to 5.2 percent. Always check the live rate on the official post office site before committing, since quarterly revisions move it.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What is the Post Office Monthly Income Scheme?
A 5-year government savings scheme paying interest monthly. Deposit up to ₹9 lakh (single) or ₹15 lakh (joint) at the prevailing rate (7.4%), receive monthly payouts, and get the principal back at maturity. Quarterly rate revisions follow government bond yields: the 7.4% moves with markets.
How much monthly income does ₹9 lakh give in POMIS?
At 7.4%: 900,000 x 0.074 / 12 = ₹5,550 per month, or ₹66,600 per year. The maximum joint deposit of ₹15 lakh pays ₹9,250 monthly. Joint accounts double the limit to 15 lakh: couples should always open joint to maximize the monthly payout.
Is POMIS interest taxable?
Yes, fully taxable at your income tax slab rate. Unlike PPF, there is no tax exemption on the interest. A 30% bracket investor nets about 5.2% post-tax from the 7.4% headline. TDS applies above thresholds: submit Form 15G/H if your income is below taxable limits.
Can I withdraw POMIS money early?
Yes, after 1 year with penalties: 2% of principal if closed between 1-3 years, 1% after 3 years. No withdrawal is allowed in the first year. The penalty is deducted from principal: a 9 lakh closure at year two returns 8.82 lakh.
What happens at POMIS maturity?
You receive the full principal back after 5 years. The account can be extended in 5-year blocks by application, or closed and the money reinvested at prevailing rates. Nomination is mandatory at account opening: keep nominee details current to spare heirs paperwork delays.
Is POMIS better than a bank FD?
For monthly income needs, often yes: the rate (7.4%) beats most bank FDs and payouts are monthly by design. For growth, FDs with compounding or PPF may suit better. Compare post-tax yields, not headlines. Senior Citizens Savings Scheme at 8.2% beats MIS for eligible retirees: compare first.
Can NRIs invest in POMIS?
No. The Monthly Income Scheme is open only to resident Indian individuals. NRIs must look at NRE/NRO deposits or other eligible instruments. NRE deposits cannot fund MIS: only resident savings accounts qualify, so returning NRIs must convert their account status first.
How many POMIS accounts can I open?
Multiple accounts are allowed, but total deposits across all your MIS accounts cannot exceed the ₹9 lakh single / ₹15 lakh joint limits. Spouses can each hold separate single accounts: a couple can park 18 lakh across two singles for maximum coverage.
Does MIS interest compound?
No. Interest is paid out monthly to your savings account by design. If you want compounding, reinvest the payouts yourself into another instrument. Reinvest each monthly payout into a recurring deposit: the manual compounding workaround turns steady payouts into genuine growth over time.
Is POMIS safe?
It is a Government of India-backed small savings scheme, carrying sovereign guarantee on principal and interest. Credit risk is effectively zero; the risks are inflation and interest-rate changes. DICGC does not cover post office schemes: the sovereign guarantee is stronger anyway.