POMIS Calculator: Find out Your Guaranteed Monthly “Income” from the Post Office

Let us paint a picture that almost every Indian can relate to. You have worked hard your entire life. You have commuted through heavy traffic, dealt with stressful bosses, and saved a portion of your salary every single month for decades. Finally, retirement day arrives.

At first, it feels amazing. No more alarm clocks! But by the second week, a quiet panic starts to set in. For the first time in 30 years, you are not going to receive that comforting SMS on the 1st of the month: “Your salary has been credited.”

How do you pay for groceries? How do you pay your electricity bills? How do you replace that monthly paycheck without risking your hard-earned life savings in the volatile stock market?

This is exactly where the Post Office Monthly Income Scheme (POMIS) becomes a lifesaver.

Backed 100% by the Government of India, POMIS is one of the safest, most reliable investment options in the country. You deposit a lump sum of money, and in return, the Post Office pays you a fixed, guaranteed “salary” every single month for 5 years. No market crashes, no hidden fees, just pure peace of mind.

In this massive, 2,000-word Paisaseekho guide, we are going to explain everything you need to know about POMIS in 2026. We will break down the latest investment limits, explain the tax rules, compare it with Bank FDs, and give you a free, custom-built POMIS Calculator so you can see exactly how much monthly income you can generate!

1. POMIS Calculator

2. What Exactly is POMIS and How Does it Work?

Let’s break the POMIS (Post Office Monthly Income Scheme) down into 10th-grade English.

Imagine you buy a small shop and give it on rent. Every month, the tenant pays you a fixed rent. At the end of your agreement, you still own the shop.

POMIS works exactly like this, but without the headache of finding a tenant or dealing with property repairs.

1. The Asset: You open a POMIS account at your local post office and deposit a lump sum of cash (e.g., ₹10 Lakhs).
2. The Rent: The government takes your money and uses it to build roads, bridges, and infrastructure. For using your money, they pay you “rent” (Interest) every single month, directly into your savings account.
3. The Return: Exactly 5 years later, the agreement ends. The government stops paying the monthly rent, but they return your original ₹10 Lakhs to you safely.

It is the perfect financial product for retirees, housewives, or anyone who has a large chunk of money (like a property sale or an inheritance) and wants to convert it into a steady, reliable monthly cash flow.

3. Why is POMIS So Popular in 2026? 

In 2026, we are living in a very unpredictable world. The stock market goes up and down based on wars happening in other countries, and sometimes even large banks face crises.

In this chaos, the Post Office is a fortress.

When you put your money in POMIS, you are not lending money to a private businessman or a corporate bank; you are lending money directly to the Government of India.

This is called a “Sovereign Guarantee.” It means that even if the global economy crashes, the Indian government is legally obligated to pay you your monthly interest and return your principal. Your risk of losing your money is absolutely zero. This psychological peace of mind is why millions of senior citizens refuse to put their retirement money anywhere else.

4. POMIS Investment Limits and Lock-ins

The government knows that POMIS is an amazing deal. Because it is so safe and offers a high interest rate, if there were no rules, billionaires would put hundreds of crores into it just to sit back and earn guaranteed money.

To ensure this scheme benefits the middle class, the government has placed strict limits.

The Deposit Limits (Updated for 2026)

In recent budgets, the Finance Minister massively increased the limits, making POMIS much more attractive.

• Single Account: If you open the account in just your name, the maximum amount you can deposit is ₹9,00,000 (Nine Lakh Rupees).
• Joint Account: If you open the account with your spouse, sibling, or parent, the maximum limit jumps to ₹15,000,000 (Fifteen Lakh Rupees). You can have a maximum of 3 adults in a joint account.

Note: You can open multiple POMIS accounts in different post offices, but if you add up all the deposits across all your accounts, the total cannot cross ₹9 Lakh for an individual.

The Minimum Deposit

You do not need to be rich to start. The minimum amount required to open a POMIS account is just ₹1,000. All deposits must be in multiples of ₹1,000.

The Lock-in Period

POMIS is a medium-term commitment. Once you deposit the money, the account is locked for exactly 5 years. You will receive your interest every month for 60 months, and on the exact 5th anniversary of opening the account, your original principal will be returned to you.

5.How Much Monthly Income Can You Actually Earn?

Let us do a simple calculation so you understand exactly how the Post Office figures out your monthly payout.

The current interest rate is approximately 7.4% per annum (per year).

(Note: The government reviews this rate every quarter, but once you open your account, your rate is “locked” for the entire 5 years. Even if the government drops the rate next year, you will continue to get 7.4%!).

Scenario 1: Mr. Sharma opens a Single Account with maximum limits.

• Deposit Amount (P): ₹9,00,000
• Interest Rate (R): 7.4% per year
• Yearly Interest = (9,00,000 x 7.4) / 100 = ₹66,600 per year.
• Monthly Income = ₹66,600 / 12 months = ₹5,550 per month.

Scenario 2: Mr. and Mrs. Sharma open a Joint Account with maximum limits.

• Deposit Amount (P): ₹15,00,000
• Interest Rate (R): 7.4% per year
• Yearly Interest = (15,00,000 x 7.4) / 100 = ₹1,11,000 per year.
• Monthly Income = ₹1,11,000 / 12 months = ₹9,250 per month.

For a retired couple living in a tier-2 city, an extra ₹9,250 dropping into their bank account every month covers the entire grocery bill and the electricity bill, guaranteed for 5 straight years!

6. What If You Need Your Money Back Early? (Premature Withdrawal)

Life is unpredictable. You might deposit ₹9 Lakhs locking it for 5 years, but suddenly, there is a medical emergency in Year 2, and you desperately need that cash.

The Post Office understands this, but they also want to discourage people from treating this like a regular savings account. Therefore, they allow “Premature Withdrawals,” but they hit you with a financial penalty.

Here are the strict rules for breaking your POMIS account early:

• Before 1 Year: You are completely locked in. You cannot withdraw your money under any circumstances before 1 year is complete (except in the unfortunate event of the account holder’s death).
• Between 1 Year and 3 Years: If you break the account during this window, the Post Office will deduct a 2% penalty from your principal amount.
  (Example: If you deposited ₹9 Lakhs, they will deduct ₹18,000 as a penalty and return ₹8,82,000 to you).
• Between 3 Years and 5 Years: If you break the account in the final two years, the penalty is reduced to 1% of your principal.
  (Example: If you deposited ₹9 Lakhs, they will deduct ₹9,000 and return ₹8,91,000 to you).

Paisaseekho Advice: Never put your emergency fund into POMIS. Always keep at least 6 months of living expenses in a highly liquid savings account or a liquid mutual fund, so you never have to pay these 1% or 2% penalties to the Post Office.

7. Is POMIS Income Tax-Free?

This is the biggest misconception about the Post Office Monthly Income Scheme. Many people assume that because it is a government scheme, it must be tax-free.

This is absolutely false.

Here are the critical tax rules you must know in 2026:

1. No Section 80C Benefit: When you deposit your ₹9 Lakhs, you do not get any tax deduction under Section 80C.
2. Fully Taxable Interest: The ₹5,550 you receive every month is considered “Income from Other Sources.” You must add this total yearly interest to your regular income and pay tax on it according to your income tax slab. If you are in the 30% tax bracket, a huge chunk of your POMIS income will go back to the government as tax!
3. The Silver Lining (No TDS): Unlike bank Fixed Deposits, the Post Office does not deduct any TDS (Tax Deducted at Source) from your monthly payouts. You receive the full amount in your hand every month. However, it is your legal responsibility to declare it when you file your ITR (Income Tax Return) at the end of the year.

8. POMIS vs. Bank FDs vs. SCSS (Which One Should You Choose?)

You might be wondering, “Why should I choose POMIS when HDFC or SBI are offering Monthly Payout Fixed Deposits?” or “What about the Senior Citizen Savings Scheme?”

Let’s do a quick comparison to help you choose the right product.

POMIS vs. Bank Monthly FDs

• Interest Rate Security: Bank FD rates change constantly. If you book an FD today and the bank drops rates next year, your renewal will be at a lower rate. With POMIS, your 7.4% is locked safely for 5 straight years.
• Safety: While big private banks are relatively safe, POMIS has zero default risk because of the sovereign guarantee.

POMIS vs. Senior Citizen Savings Scheme (SCSS)

If you are above 60 years of age, the SCSS is mathematically much better than POMIS.

• SCSS currently offers a much higher interest rate (usually above 8.2%).
• SCSS allows a massive deposit limit of ₹30 Lakhs.
• SCSS gives you a tax deduction under Section 80C.
• The Catch: SCSS is only for people above 60. POMIS is available for any adult (even an 18-year-old). Also, SCSS pays interest quarterly (every 3 months), whereas POMIS pays you every single month.

9. Step-by-Step: How to Open a POMIS Account

In 2026, the Post Office has modernized massively. Opening an account is no longer a painful all-day process.

Step 1: Open a Post Office Savings Account

You cannot just take cash and open a POMIS account. You first need a regular Post Office Savings Account. Why? Because the monthly interest from your POMIS will be automatically credited (auto-transferred) to this savings account every month. You can even link this savings account to your standard bank account via net banking!

Step 2: Gather Your Documents

You will need your KYC documents. Carry your original Aadhaar Card, PAN Card, two recent passport-size photographs, and photocopies of everything.

Step 3: Visit the Post Office

Go to your nearest India Post branch. Ask for the “Account Opening Form” (Form-1).

Step 4: Make the Deposit

Fill out the form, attach your KYC, and provide your initial deposit. You can pay via a Cheque or a Demand Draft. (If you use a cheque, the date of realizing the cheque in the government’s account will be the official opening date of your POMIS).

Step 5: Collect Your Passbook

Once processed, the Post Master will hand you a physical passbook. Keep this safe! It contains your account number and tracks your 5-year lock-in period.

Conclusion: A Rock-Solid Foundation for Your Portfolio

In the exciting world of cryptocurrency, high-risk stocks, and unpredictable real estate, the Post Office Monthly Income Scheme feels a bit… boring.

But when it comes to your core financial security, “boring” is exactly what you want.

POMIS is not designed to make you a millionaire overnight. It is designed to let you sleep peacefully at night. By utilizing our POMIS Calculator to plan your deposits, you can build a reliable, unshakeable “salary” that hits your account on the same day every single month, regardless of whether the stock market crashes or a global war breaks out.

For retirees, conservative investors, and families looking to stabilize their cash flow, the 2026 Post Office Monthly Income Scheme remains an absolute crown jewel of the Indian financial system.

Frequently Asked Questions (FAQs) About POMIS

Q1: What is the current interest rate of the Post Office Monthly Income Scheme?

For the year 2026, the interest rate generally hovers around 7.4% per annum, payable monthly. The Ministry of Finance reviews and declares the exact rate every quarter.

Q2: What is the maximum amount I can invest in POMIS?

An individual can deposit a maximum of ₹9 Lakhs in a single account. If you open a joint account (maximum 3 adults), the total combined limit increases to ₹15 Lakhs.

Q3: Is the monthly interest from POMIS tax-free?

No, the interest is fully taxable. The monthly payout is added to your total annual income and taxed according to your applicable income tax slab. However, the Post Office does not deduct TDS before paying you.

Q4: Do I get tax benefits under Section 80C for investing in POMIS?

No. Unlike the Public Provident Fund (PPF) or the Senior Citizen Savings Scheme (SCSS), the initial lump sum deposit you make into a POMIS account does not qualify for tax deductions under Section 80C.

Q5: Can I withdraw my money from POMIS after 2 years?

Yes, but with a penalty. You cannot withdraw anything in the first year. If you withdraw between 1 to 3 years, a 2% penalty is deducted from your principal. If you withdraw between 3 to 5 years, a 1% penalty is deducted.

Q6: Does the interest rate change every quarter for my existing POMIS account?

No. This is a huge benefit. Even though the government updates the rate every quarter for new accounts, the rate you get on the day you open your account is permanently locked in for the entire 5-year duration of your scheme.

Q7: Can I leave the monthly interest in the POMIS account to compound?

No. POMIS does not offer compound interest. The interest must be paid out every month. If you do not withdraw it from your linked savings account, it will only earn the standard savings account interest (around 4%), not the 7.4% POMIS rate.

Q8: What happens to the account if the account holder passes away?

If the primary account holder dies, the POMIS account will be closed prematurely without any penalty. The principal amount and the interest earned up to the month of death will be paid to the registered nominee or legal heir.

Q9: Can I open a POMIS account in the name of a minor child?

Yes. A parent or legal guardian can open a POMIS account on behalf of a minor. Furthermore, a minor above the age of 10 can independently open and operate an account in their own name, subject to the ₹9 Lakh maximum limit.

Q10: After 5 years, can I extend the same POMIS account?

No, POMIS does not have an automatic extension facility. After 5 years, the account matures, and the principal is credited to your savings account. If you want to continue, you must take that money and physically open a brand-new POMIS account at the current prevailing interest rate.