What is the Post Office MIS?
The Post Office Monthly Income Scheme pays a fixed monthly interest on a lump-sum deposit for five years, with the principal returned at maturity. It is sovereign-backed and popular with retirees who want predictable cash flow.
Limits are ₹9 lakh for a single account and ₹15 lakh for a joint account.
Formula & worked example
Worked example: ₹9,00,000 at 7.4% earns ₹66,600 a year, giving a monthly payout of ₹5,550. Over five years you receive ₹3.33 lakh of interest and the ₹9 lakh principal comes back intact at maturity.
How to use this post office mis calculator
- Enter your deposit — the calculator caps it at the applicable limit.
- Select single or joint; joint accounts allow ₹15 lakh.
- The rate is fixed at deposit for the full five years.
- The monthly figure is credited to your linked savings account.
Smart tips
- A couple can open one joint (₹15 lakh) plus two single accounts, maximising household allocation.
- There is no TDS on POMIS, but the interest is fully taxable in your hands.
- Premature closure after one year carries a 2% penalty; after three years it drops to 1%.
- Combine POMIS with SCSS for a laddered, fully guaranteed retirement income stream.
- The rate is fixed for five years, so locking in when rates are high is valuable.
Frequently asked questions
What is the POMIS interest rate?
Currently 7.4% a year, paid monthly. It is revised quarterly for new accounts but fixed once you deposit.
What is the maximum POMIS investment?
₹9 lakh in a single account and ₹15 lakh in a joint account.
Is POMIS interest taxable?
Yes, fully taxable at your slab rate, although no TDS is deducted at source.
Can I withdraw POMIS early?
Yes, after one year with a 2% penalty on the deposit, reducing to 1% after three years.
Want the theory behind the numbers? Read our small savings guides on the Money Blog.