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Smart and informed investment decisions are a great way to grow your corpus and secure your financial future. Among the many investment options available, the Post Office Monthly Income Scheme (POMIS) is one of the safest options.


POMIS, a scheme recognised and approved by the Ministry of Finance, offers security for your investments. It enables you to invest funds into an account and earn fixed monthly interest payments. 


In fact, according to the 2023-24 Budget, the limit for this scheme has been increased to ₹9 Lakhs for single accounts and to ₹15 Lakhs for joint accounts. Additionally, investing in the postal monthly income scheme is simple. All you have to do is visit a post office near you and open an account.


To understand how you can make the most of your investment with postal MIS, scheme benefits and features, read on.

Interest Rates of Post Office Monthly Income Scheme

For April-June 2023, the POMIS interest rate is 7.40%, making it one of the highest return-generating schemes. The interest rate is set every quarter, and the previous rates are available on the official website. 


Here are previous Post Office MIS scheme interest rates:


POMIS Interest Rates (p.a.)

Jan – March 2023


Oct – Dec 2022


April – Sept 2020


Jan – March 2020


The effective Post Office MIS scheme rate is set every three months based on the yields of the same-term government bonds. Unlike some investment instruments, the Post Office Monthly Income Scheme interest rate for senior citizens and non-senior citizens is the same. 


Your interest earnings are calculated based on the investment amount, prevailing interest rate, and other factors. Furthermore, interest earned is not subject to TDS. However, you must pay taxes on the interest income. 


With monthly interest payouts, you can also choose the automatic withdrawal transfer option offered under POMIS. Your earnings are automatically transferred to your savings account through ECS and PDCs.


You also have the option to reinvest the maturity amount. Moreover, if you do not withdraw at the end of the tenor, your investment will continue to collect interest for up to 2 years. 


post office monthly income scheme

Features and Benefits of the POMIS Scheme

The following are the key features and benefits of a Post Office Monthly Income Scheme:

1. Low-Risk Term Investment: 

The Post Office MIS is a secure, risk-free avenue for investment. The fixed interest from the scheme ensures stable monthly income payments. Moreover, it has a 5-year (60 months) lock-in term with a reinvestment option. 

2. Minimum & Maximum Required Amount: 

The Post Office MIS plan has a minimum deposit requirement of ₹1,000. The maximum amount you may deposit depends on your account type and is as follows:

Account Type 

Maximum Investment Limit

Single Account

₹9 Lakhs

Joint Account

₹15 Lakhs

3. Facility of Joint Account: 

Indian residents above the age of 10 years old can invest either individually or jointly. A joint account can only be held by three adults, with the shares being equal for every account holder.

4. Unlimited Accounts: 

There is no limit on the number of accounts you can have. There is, however, a cap on the total amount you can invest. The maximum cumulative balance for all single accounts is ₹9 Lakhs, while that for joint accounts is ₹15 Lakhs.

5. Nomination & Transfer facilities: 

You can transfer your accounts between different post offices. Moreover, you also get a nomination facility, which you can modify in the future. The beneficiary, however, can only claim upon the account holder's demise.

6. Auto Interest Withdrawal: 

You can automatically transfer your interest earnings from the prevailing POMIS interest rates to a savings account. This is done using the Electronic Clearing System (ECS) or Post-Dated Cheques (PDC).

7. Taxation on the Earnings: 

The interest amount is not subject to TDS deduction. However, the income from the post office MIS scheme is taxable. The investment is also ineligible for section 80C tax concessions.

Premature Withdrawal Penalty

Premature withdrawals are permitted after one year. However, there is a penalty depending on when you make the withdrawal. If it is after 3 but before 5 years, the penalty is 1%. In case it is after 1 year but before 3 years, the penalty is 2%.  

Process of Opening a POMIS Account

To start your Post Office Monthly Income Scheme, you will need to visit the nearest post office in your area and get the POMIS form. Once you fill out the application form, submit it with the required documents and nominee information. After that, make your first deposit. 


Before you invest in POMIS, keep the following in mind:

  • Make sure you have a savings account with the post office

  • If you don’t, Open it with the post office where you want to open a POMIS account 

  • Carry your original documents to complete the verification

Eligibility and Document Requirements

Every Indian citizen who is a resident and above the age of 10 is eligible to open a POMIS account. POMIS is not available for Non-Resident Indians (NRIs). The following documents are required at the time of applying to open a POMIS account:

  • Two passport-sized recent photographs

  • Proof of address

  • Proof of identity documents with the original papers at the time of application. (Aadhar card, Voter ID, PAN Card, Passport)

Post Office Monthly Income Scheme Calculator

Today, there is a digital calculator for multiple investment instruments, including POMIS. The Post Office MIS interest rate calculator is available on the official website of various banks, NBFCs, and financial institutions. 


Like other return calculators, this calculator estimates the monthly interest that you earn by investing in POMIS. The results of the Post Office MIS calculator can be compared to other such monthly income schemes


Comparing the returns of the Post Office Monthly Income Scheme with other monthly income schemes will enable you to make an informed decision. It will also help ensure that you make the most of your investment. 


Whether you are a non-senior citizen or senior citizen, post office MIS calculator is convenient, easy, and quick. Just enter the investment amount and the current interest rate to get the results instantly. 

An Example to Analyse POMIS

If you invest ₹3,00,000 in the scheme with a maturity period of 5 years, you will receive a fixed monthly payout of around ₹1,750 at an annual interest rate of 7%. You have two options to withdraw this amount: you can either receive it directly from the post office or as a credit in your savings account through ECS. 


You can withdraw this amount every month. You can even let it accumulate over a few months and then withdraw the accrued amount. However, doing the latter may not be beneficial, as your income does not earn any interest. 


Instead, you can opt for the new feature of investing your monthly interest payout into a recurring deposit (RD) account. This way, you can keep growing your wealth.

Post Office Monthly Income Scheme Vs Other Saving Schemes

Here is a comparison of POMIS with other saving schemes:

Savings Scheme

Interest Rate (p.a.)


Post Office Monthly Income Scheme


No TDS deduction

Post Office Time Deposit (5 years)


TDS deduction is applicable

Post Office Time Deposit (1,2,3 years)


No TDS deduction

Post Office Recurring Deposit


No TDS deduction

Public Provident Fund


TDS deduction is applicable

Senior Citizen Saving Scheme


TDS deduction is applicable

National Savings Certificate


TDS deduction is applicable

Disclaimer: Above-mentioned rates and charges are subject to changes at the lender’s discretion.


Before investing in any instruments or schemes, including POMIS, ensure that they align with your current and future financial needs. This will help ensure that you stay invested for the long haul and maximise your returns.


 The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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The minimum investment amount for investing in POMIS is ₹1000.

POMIS comes with multiple withdrawal options. The first is from the post office, and the second is to transfer the amount to your savings account through ECS.

Yes, you can transfer your Post Office Monthly Income Scheme account from one post office to another.

Yes. POMIS is one of the most suitable investment schemes for senior citizens. 

Yes, premature withdrawal is allowed in the POMIS. However, there is a penalty.

No, you cannot avail a loan against your POMIS account.

The Post Office Monthly Income Scheme is among the best because of benefits like low minimum investment and high interest rates.

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