Post Office MIS Calculator - Monthly Income Scheme POMIS Calculator
📮 Calculate Monthly Income from Post Office MIS | 7.4% Interest Rate | 5-Year Tenure | Government Guaranteed
A Post Office MIS Calculator (POMIS Calculator) is an essential tool for calculating monthly interest income from the Post Office Monthly Income Scheme, a government-backed savings program offering fixed monthly returns. The Post Office Monthly Income Scheme (POMIS/MIS) provides a safe investment option with a current interest rate of 7.4% per annum (effective January 1, 2025), paid monthly on the 15th of every month. This free online calculator helps investors determine exact monthly income, total interest earnings over the 5-year tenure, and maturity amount based on their lump sum deposit (minimum ₹1,000, maximum ₹9 lakh for single account or ₹15 lakh for joint account). Ideal for retirees, senior citizens, and conservative investors seeking regular monthly income without market risk, POMIS is 100% government-backed by India Post under the Ministry of Finance, making it one of the safest fixed-income instruments in India.
Calculate Your Post Office MIS Returns
Understanding Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS/MIS) is a low-risk, government-guaranteed savings scheme designed to provide regular monthly income to investors. Launched by India Post under the Department of Posts, Ministry of Communications, and backed by the Government of India, POMIS offers complete capital safety with fixed interest returns paid monthly throughout the 5-year tenure.
Unlike other investment options where returns fluctuate with market conditions, POMIS provides predictable monthly cash flow making it ideal for retirees, senior citizens, housewives, and conservative investors who prioritize safety and regular income over high returns. The scheme allows lump sum deposits with interest credited monthly to a linked Post Office Savings Account, providing steady passive income for living expenses, medical bills, or reinvestment.
POMIS Interest Rate - Current & Historical
The Post Office MIS interest rate is revised quarterly by the Ministry of Finance based on government bond yields and prevailing economic conditions:
| Effective Period | Interest Rate (% p.a.) | Monthly Income on ₹1 Lakh |
|---|---|---|
| January 1, 2025 - Present | 7.4% | ₹617 |
| April 1, 2023 - December 31, 2024 | 7.4% | ₹617 |
| January 1 - March 31, 2023 | 7.1% | ₹592 |
| October 1 - December 31, 2022 | 7.1% | ₹592 |
| July 1 - September 30, 2022 | 6.6% | ₹550 |
| April 1 - June 30, 2022 | 6.6% | ₹550 |
| October 1, 2020 - March 31, 2022 | 6.6% | ₹550 |
Important Note: Once an account is opened, the interest rate remains fixed for the entire 5-year tenure regardless of future rate revisions. For example, if you opened an account in April 2023 at 7.4%, you'll receive 7.4% throughout, even if rates change later.
POMIS Calculation Formula
Calculating monthly income from Post Office MIS is straightforward using simple interest methodology:
Post Office MIS Interest Calculation Formula
Where:
P = Principal invested (lump sum deposit)
r = Annual interest rate (as decimal, e.g., 7.4% = 0.074)
(Principal returned at maturity, interest paid monthly during tenure)
Example Calculation 1: Investment of ₹5,00,000 at 7.4% interest rate
Monthly Interest = ₹5,00,000 × 7.4% / 12 = ₹5,00,000 × 0.074 / 12 = ₹3,083 per month
Total Interest (5 years) = ₹3,083 × 60 = ₹1,84,980
Maturity Value = ₹5,00,000 + ₹1,84,980 = ₹6,84,980
You receive ₹3,083 monthly for 60 months, and ₹5 lakh principal back at maturity.
Example Calculation 2: Maximum single account investment of ₹9,00,000 at 7.4%
Monthly Interest = ₹9,00,000 × 7.4% / 12 = ₹5,550 per month
Total Interest = ₹5,550 × 60 = ₹3,33,000
Maturity Value = ₹9,00,000 + ₹3,33,000 = ₹12,33,000
For couples with joint account (₹15 lakh), monthly income would be ₹9,250.
Investment Limits and Account Types
Post Office MIS has specific investment limits based on account type:
| Account Type | Minimum Investment | Maximum Investment | Investment Multiples |
|---|---|---|---|
| Single Account | ₹1,000 | ₹9,00,000 | ₹1,000 |
| Joint Account (2 holders) | ₹1,000 | ₹15,00,000 | ₹1,000 |
| Joint Account (3 holders) | ₹1,000 | ₹15,00,000 | ₹1,000 |
| Minor Account (Guardian) | ₹1,000 | ₹9,00,000 | ₹1,000 |
Key Points on Investment Limits:
- Individual Limit: Maximum ₹9 lakh across all MIS accounts including share in joint accounts
- Joint Account Sharing: In joint account, shares are equal unless specified differently at opening
- Multiple Accounts: Can open multiple accounts at different Post Offices, but total individual investment cannot exceed ₹9 lakh
- Investment Multiples: Deposit must be in multiples of ₹1,000 (e.g., ₹1,000, ₹2,000, ₹5,000, ₹10,000...)
- No Age Limit: No upper age limit for opening account, even 90+ year olds can invest
- Minor Accounts: Parents/guardians can open for minors; account matures in minor's favor
Features and Benefits of POMIS
Post Office Monthly Income Scheme offers several advantages for conservative investors:
- Government Backing: 100% safe, backed by Government of India sovereign guarantee
- Fixed Interest Rate: 7.4% p.a. locked for 5 years once account opened
- Monthly Payout: Interest credited on 15th of every month automatically
- Simple Interest: Easy calculation, predictable returns, no compounding complexity
- Capital Safety: Full principal returned at maturity, no market risk
- Nomination Facility: Can nominate beneficiaries for smooth inheritance
- Joint Account Option: Can invest with spouse/family (max ₹15 lakh jointly)
- Pan-India Availability: Available at all 1.5 lakh+ Post Offices across India
- No TDS: No TDS deduction if annual interest < ₹40,000 (Form 15G/15H)
- Loan Against Deposit: Can pledge MIS account for loan (after 1 year, up to 50% value)
- Account Transfer: Can transfer account to any other Post Office in India
- Ideal for Retirees: Perfect for pension-like monthly income post-retirement
Eligibility Criteria
Post Office MIS has simple eligibility requirements:
- Individual Indian Citizens: Any Indian resident adult can open account
- No Age Limit: No minimum (except 10 years for single) or maximum age restriction
- Joint Accounts: Up to 3 adults can open joint account together
- Minor Accounts: Guardian can open for minor (below 10 years); converts to normal at 10
- HUF Accounts: Hindu Undivided Families can open MIS accounts
- Not Allowed: NRIs, PIOs, Trusts, and Institutions cannot invest in POMIS
- Senior Citizens: Same rules as regular citizens; no special higher limits or rates
Documents Required:
- Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID, Driving License
- Address Proof: Aadhaar, Passport, Utility Bills, Ration Card, Bank Statement
- Passport-size photographs (2 copies)
- PAN Card (mandatory if investment > ₹50,000)
- Nomination form (optional but recommended)
Premature Closure and Penalties
While POMIS has 5-year lock-in, premature withdrawal is allowed with penalties:
| Withdrawal Period | Penalty | Amount Refunded |
|---|---|---|
| Before 1 Year | No interest paid | Only principal refunded |
| 1 Year to 3 Years | 2% of principal deducted | Principal - 2% + interest received |
| 3 Years to 5 Years | 1% of principal deducted | Principal - 1% + interest received |
| After 5 Years (Maturity) | No penalty | Full principal refunded |
Premature Closure Example: ₹5,00,000 account opened, closed after 2 years (24 months)
Monthly interest already received: ₹3,083 × 24 = ₹73,992
Penalty: 2% of ₹5,00,000 = ₹10,000
Amount Received: ₹5,00,000 - ₹10,000 = ₹4,90,000
Total Money Back: ₹4,90,000 (principal) + ₹73,992 (interest already received) = ₹5,63,992
Effective return over 2 years ≈ 6.4% p.a. after penalty (lower than 7.4% if held full tenure).
Warning - Premature Closure Impact: Closing MIS account before 5 years significantly reduces returns. Before 1 year, you lose all interest and get only principal back - effectively 0% return. The 2% penalty in years 1-3 means you get ₹9,80,000 back on ₹10 lakh deposit even after receiving 2 years of interest. Always plan for 5-year commitment when investing in POMIS. For shorter needs, consider RD or FD with flexible tenures.
Tax Implications of POMIS
Understanding tax treatment is crucial for net return calculation:
- Taxable Income: Monthly interest is fully taxable under "Income from Other Sources"
- No Tax Deduction: Principal investment in POMIS does not qualify for 80C deduction
- TDS Applicability: TDS deducted if annual interest exceeds ₹40,000 (₹6.48 lakh+ deposit)
- Form 15G/15H: Submit to avoid TDS if total income below taxable limit
- ITR Reporting: Report interest income in ITR even if below taxable limit
- Senior Citizens: Same tax rules; no special exemption on MIS interest
Tax Calculation Example:
Investment: ₹9 lakh at 7.4% | Monthly Income: ₹5,550 | Annual Interest: ₹66,600
If you're in 20% tax bracket: Tax = ₹66,600 × 20% = ₹13,320
Post-tax annual income = ₹66,600 - ₹13,320 = ₹53,280
Effective post-tax return = 5.92% p.a. (for 20% bracket)
For 30% bracket: Post-tax return = 5.18% | For 5% bracket: 7.03%
POMIS vs Other Post Office Schemes
Comparing POMIS with other popular Post Office savings options:
| Scheme | Interest Rate | Tenure | Payout | Best For |
|---|---|---|---|---|
| POMIS | 7.4% p.a. | 5 years | Monthly | Regular income seekers |
| Post Office TD | 7.0-7.5% p.a. | 1-5 years | Maturity | Lumpsum at maturity |
| PPF | 7.1% p.a. | 15 years | Maturity | Long-term wealth, 80C benefit |
| SCSS | 8.2% p.a. | 5 years | Quarterly | Senior citizens 60+ only |
| NSC | 7.7% p.a. | 5 years | Maturity | 80C tax saving |
| KVP | 7.5% p.a. | 115 months | Maturity (doubles) | Wealth doubling guarantee |
Key Differences:
• POMIS: Only scheme offering monthly income; no tax benefit; 5-year lock-in
• SCSS: Higher 8.2% rate but only for 60+ age; quarterly payout; 80C benefit on ₹1.5L
• PPF: Longest tenure (15 years); 80C benefit on ₹1.5L; compounding benefit; partial withdrawal after 5 years
• NSC: Similar tenure but compounding at maturity; 80C benefit; no regular income
Choose POMIS if you need monthly cash flow and prioritize safety over tax savings or higher returns.
How to Open POMIS Account
Opening a Post Office MIS account is a simple process:
- Step 1: Visit nearest Post Office branch with required documents
- Step 2: Fill POMIS account opening form (available at Post Office or online)
- Step 3: Submit form with KYC documents (identity, address proof, PAN, photos)
- Step 4: Link existing Post Office Savings Account or open new one (mandatory)
- Step 5: Make payment via cash, cheque, or DD (multiples of ₹1,000)
- Step 6: Fill nomination form (optional but recommended)
- Step 7: Collect passbook and acknowledgment receipt
- Step 8: Monthly interest auto-credited to linked savings account from 15th of next month
Online Option: POMIS account cannot be opened 100% online yet. Must visit Post Office physically for account opening. However, India Post offers internet banking for existing POMIS account management, balance check, and passbook download.
Pro Tip - Maximizing POMIS Returns: Open at start of month to get full month's interest credited on 15th of next month. For couples, open joint account (₹15 lakh) instead of two single accounts (₹9L + ₹9L = ₹18L) to comply with ₹15L joint limit. Link MIS to high-interest Post Office Savings Account (4% interest) to earn additional interest on monthly payouts. Consider laddering strategy: open ₹3L POMIS each year for 3 years instead of ₹9L once - provides liquidity every year after 5-year tenure.
POMIS for Senior Citizens
While POMIS is open to all ages, it's particularly suitable for retirees and senior citizens:
- Pension Supplement: Monthly income supplements pension for living expenses
- Capital Safety: 100% safe investment critical for retirement corpus preservation
- No Age Limit: Can invest even at 80+ years unlike SCSS which limits at 60
- Simple Management: No market tracking or active management needed
- Predictable Income: Fixed ₹5,550/month on ₹9L investment helps budgeting
- No Lock-in Stress: 5 years manageable for most seniors; premature exit possible
- Nomination: Easy wealth transfer to spouse/children via nomination
- Medical Emergency: Can close prematurely with 1-2% penalty if urgent need
POMIS vs SCSS for Seniors:
• SCSS Advantages: Higher 8.2% rate, quarterly ₹20,500 on ₹10L, 80C benefit on ₹1.5L, age-restricted (60+)
• POMIS Advantages: No age limit, monthly payout (vs quarterly), joint account ₹15L (vs ₹15L individual SCSS), simpler taxation
Recommendation: Use SCSS first (max ₹30L combined with spouse), then POMIS for additional safety with monthly income needs.
Common Mistakes to Avoid
Avoid these common errors when investing in POMIS:
- Exceeding Individual Limit: Don't invest more than ₹9L across all accounts; excess gets rejected
- No Linked Savings Account: Must link POSA for interest credit; open before MIS if needed
- Ignoring Nomination: Without nomination, legal heirs face complications claiming money
- Wrong Account Type: Choose joint account (₹15L) if investing with spouse vs two singles (limited ₹9L each)
- Premature Closure: Closing within 3 years incurs heavy 2% penalty plus lost interest
- Tax Planning: Not considering tax impact; 7.4% becomes 5.18% post-tax for 30% bracket
- Not Updating Address: Change of address must be updated or interest statements won't reach
- Misunderstanding Interest: Interest paid monthly; principal returned only at maturity, not monthly
- PAN Not Provided: Must provide PAN if investment > ₹50,000 else account rejected
- Expecting Higher Returns: 7.4% is moderate; equity/mutual funds may give higher long-term returns
