Post Office Monthly Income Scheme Calculator

What Is the Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme (POMIS) is a government-backed savings instrument offered through India Post branches. It guarantees regular monthly income to investors at a fixed interest rate, making it popular among retirees and those seeking steady returns. Unlike variable-return investments, POMIS provides predictable monthly deposits directly to your bank account.

The scheme runs for a fixed 5-year tenure, after which you can withdraw the full amount or reinvest. Interest accrues monthly but is credited to your linked bank account every month without fail.

How Is Monthly Income Calculated in POMIS?

The monthly income from POMIS depends on three factors: your principal amount, the interest rate set by India Post each quarter, and the 5-year maturity period.

The basic formula is:

Monthly Income = (Principal × Annual Interest Rate) ÷ (12 × 100)

For example, if you invest ₹2,00,000 at a 7.4% annual rate:

• Monthly Income = (2,00,000 × 7.4) ÷ 1200 = ₹1,233

The total interest earned over 5 years would be ₹73,980 (₹1,233 × 60 months). Your maturity amount equals the principal plus total interest: ₹2,73,980.

Interest is paid monthly in advance–you receive the first month’s interest within 30–40 days of account opening.

POMIS Investment Limits and Eligibility

Who Can Invest?

While POMIS was originally designed for senior citizens aged 60 and above, it now accepts investments from any individual. Non-resident Indians (NRIs) are also eligible, though accounts must be opened in person at a post office branch initially.

Investment Limits

• Minimum investment: ₹1,500
• Maximum investment for individuals: ₹9,00,000
• Maximum investment for joint accounts: ₹15,00,000

You can open multiple accounts as long as the combined balance does not exceed the limit. For example, two joint accounts with different family members can be maintained.

Account Requirements

• You must have an active India Post Savings Bank Account to open POMIS
• An NRI account is acceptable
• The account holder’s name appears in the scheme certificate

Current Interest Rates and Returns

India Post reviews POMIS interest rates every quarter (January, April, July, October). Rates are determined based on government bonds and market conditions.

Typical Interest Rates (2026)

• Current quarterly rate: 7.4% per annum (subject to quarterly revision)
• Previous rate: 7.4% per annum
• Lowest recent rate: 6.6% per annum (2023)
• Highest recent rate: 7.5% per annum (2022)

A higher principal amount locks in the rate for the full 5 years, so timing your investment before a rate increase can be beneficial. However, rates are also subject to downward revision in future quarters.

Maturity Amount Calculation

The maturity amount includes both principal and total interest earned:

Maturity Amount = Principal + (Principal × Annual Rate × 5 ÷ 100)

For a ₹5,00,000 investment at 7.4%:

• Total Interest = 5,00,000 × 7.4 × 5 ÷ 100 = ₹1,85,000
• Maturity Amount = ₹6,85,000

Withdrawal and Premature Exit Rules

POMIS allows flexibility with structured withdrawal options:

After 1 Year

You can withdraw up to 50% of the principal or the balance in your account, whichever is lower. A penalty of 1% of the withdrawal amount is deducted.

After 3 Years

You can withdraw up to 50% of the principal without penalty (this was introduced as of 2023).

After Maturity (5 Years)

Full withdrawal carries no penalty. You receive the principal plus the complete accumulated interest. You can also renew the account for another 5-year cycle at the new prevailing rate.

Example Calculations

Scenario 1: Conservative Investment

• Principal: ₹2,00,000
• Interest Rate: 7.4% per annum
• Monthly Income: ₹1,233
• Total Interest over 5 years: ₹73,980
• Maturity Amount: ₹2,73,980

Scenario 2: Maximum Individual Investment

• Principal: ₹9,00,000
• Interest Rate: 7.4% per annum
• Monthly Income: ₹5,550
• Total Interest over 5 years: ₹3,33,000
• Maturity Amount: ₹12,33,000

Scenario 3: Joint Account (Higher Limit)

• Principal: ₹15,00,000 (joint)
• Interest Rate: 7.4% per annum
• Monthly Income: ₹9,250
• Total Interest over 5 years: ₹5,55,000
• Maturity Amount: ₹20,55,000

In joint accounts, both account holders can withdraw, and monthly income is paid to a single nominated bank account.

When Should You Open a POMIS Account?

Timing matters because interest rates change quarterly. If rates are declining, locking in a higher rate by opening the account in the current quarter is advantageous. Conversely, if rates are expected to rise, delaying slightly might yield better returns in your next account.

POMIS works best if you:

• Seek guaranteed monthly income without market risk
• Have a 5-year investment horizon
• Want capital preservation alongside returns
• Prefer post office simplicity over market-based instruments

POMIS vs. Other Savings Options

POMIS typically offers 0.5–1% higher returns than fixed deposits at many banks, though rates vary. Unlike mutual funds or stocks, POMIS carries no market risk. The government-backed nature makes it one of the safest investment avenues in India.

This information is for reference only. Interest rates and scheme terms are subject to change by India Post. Verify current details on the official India Post website or visit your nearest post office branch before investing.