Find the fixed monthly income from a POMIS deposit.
About POMIS
- You deposit a lump sum once and receive interest every month for 5 years; your deposit is returned at maturity.
- Maximum deposit ₹9 lakh in a single account or ₹15 lakh in a joint account (up to 3 adults).
- The rate is fixed for the full term at the rate when you invest — 7.4% p.a. at the time of writing.
- Premature closure is allowed after 1 year with a deduction (2% of the deposit between years 1 and 3, 1% after that).
- Tax: no 80C benefit; interest is taxable, but no TDS is deducted by the post office.
Tip: link the monthly payout to a post office RD to keep the interest compounding. Also compare SCSS if you're 60 or above.
Frequently asked questions
How much can I invest in Post Office MIS?
Up to ₹9 lakh in a single account and up to ₹15 lakh in a joint account (up to three adults), with a minimum of ₹1,000. The limits apply to your total across all MIS accounts.
How is the monthly interest paid?
Interest is credited every month to your post office savings account, or to a bank account via ECS. The interest rate is fixed for the full 5-year term at the rate applicable when you invest.
Can I withdraw before 5 years?
Not in the first year. Between 1 and 3 years, 2% of the deposit is deducted; after 3 years, 1% is deducted. The rest of the deposit is returned.
Is POMIS interest taxable?
Yes. The interest is added to your income and taxed at your slab rate, and the deposit does not qualify for section 80C. Senior citizens may find the SCSS better, as it usually pays more and offers 80C benefits.