Overview
Post Office Monthly Income Scheme is a government-backed savings plan offered by India Post allowing individuals to earn a fixed, guaranteed monthly income through a one-time lump sum investment. Currently as per 2026 update, offering 7.40% per annum interest. POMIS is considered one of the safest investment options in India ensuring complete protection of your capital with no upper insurance limit.
Key Features Post Office Monthly Income Scheme 2026
- Interest Rate: 7.40% per annum (updated as per 1st April 2026 - 30th June 2026)
- Tenure: 5 years (60 months)
- Minimum Deposit For All: Rs. 1,000
- Maximum Deposit
- For Single Account: Rs.9,00,000
- For Joint Account (up to 3 person): Rs.15,00,000
Premature Withdrawal Rules: Withdrawal not allowed before 1 year, between 1 to 3 years - 2% deduction on deposit, after 3 years and before 5 years - 1% deduction on deposit.
Eligibility To Open Post Office MIS Scheme
| Any resident Indian citizen | Yes, you can open if aged is above 18 years |
| Non-Resident Indians | Not Allowed |
| Minors | Yes, age above 10 years can open an account in their own name |
| Children | Below 10 years Account through guardian. |
| Persons of unsound mind | Account through authorized guardian. |
Important Note
Any person can open more than one MIS account but the total investment across all accounts must stay within limit.
Post Office Monthly Income Scheme Interest Rate 2026
- The Post Office Monthly Income Scheme rates is notified every quarter by the Government of India which offers a fixed monthly income for 5 years.
- Current interest rate for FY 2026-27 is 7.4% per year for the April-June 2026 quarter.
- Once you open POMIS account, the interest rate stays fixed (no compounding interest) for the entire 5-year tenure, even if the government revises rates in future quarters.
- Interest is paid every month based on the amount invested and the prevailing interest rate.
- Monthly income is calculated as - Annual interest divided by 12 monthly payouts.
For Example
If you invest Rs.2,00,000 at 7.4% interest yearly. Annual interest will be Rs.14,800. So monthly Interest payout = Rs.1233.
How Interest Is Credited?
- Interest is credited every month directly to your Post Office Savings Account or your bank account through ECS.
- You must enable the Auto Credit Facility or ECS Credit at the time of account opening to ensure seamless monthly transfers.
How to Earn Rs.16,650 Every Month from Post Office MIS?
3 person say A, B and C opened One Joint MIS Account and Separate Single MIS Accounts
| Person | Investment in Joint Account | Investment in Single Account |
| Person A | Rs.5,00,000 | Rs.4,00,000 |
| Person B | Rs.5,00,000 | Rs.4,00,000 |
| Person C | Rs.5,00,000 | Rs.4,00,000 |
Total Investment
| Account Type | Amount |
| Joint MIS Account | Rs.15,00,000 |
| 3 Single MIS Accounts | Rs.12,00,000 |
| Total Investment | Rs.27,00,000 |
Here, the maximum limit in a single account is Rs.9 lakh and in a joint account is Rs.15 lakh which has been matched as per the limit of each person.
Monthly Interest @7.4% Calculation
| Details | Amount |
| Total Investment | Rs.27,00,000 |
| Monthly Interest | Rs.16,650 |
By combining 1 joint account + 3 single accounts, the three members together can invest Rs. 27 lakh.
Which means investing Rs. 27 lakh, a family can earn monthly interest = Rs. 16650.
Also Read - Post Office Fixed Deposit Scheme 2026: Safe Investment With High Returns
Maturity and Account Closure Rules
- Maturity period for POMIS is 5 years from the date of opening. Your full principal amount is returned after 5 years.
- The Post office MIS account cannot be extended beyond 5 years.
- If you wish to continue, you can open a fresh Post Office MIS account.
In Case of Account Holder's Death
- The Post Office MIS account must be closed immediately upon the holder's death.
- The full deposit amount plus interest up to the previous month will be paid to nominee or legal heir.
Important Note
If account is kept running even after the account holder's death. You will earn only Post Office Saving Account interest rate i.e., 4% after the holder's death.
Forms Required for Post Office MIS
| Purpose | Form Number |
| Opening an account | Form 1 |
| Premature closure | Form 2 |
| Final/permanent account closure | Form 3 |
Tax Treatment
- Interest earned is fully taxable.
- No Section 80C benefit available under this Post Office Monthly Income Scheme 2026.
- TDS provisions are applicable similar to interest on deposits.
Conclusion
Post Office Monthly Income Scheme offers guaranteed monthly income, full capital safety and returns better than bank Fixed deposit. Bank FDs insures only up to Rs.5 lakh under DICGC. But amount invested in POMIS Scheme remains 100% secure, whether the investment amount is Rs.5 lakh or Rs.27 lakh.
Also Read - Income Tax For Senior Citizens For FY 2026-27: Updated as per New Rules 2026
FAQs
Is POMIS interest taxable?
Yes, the monthly interest earned from POMIS is fully taxable as per your income tax slab.
Can two people open a joint POMIS account?
Yes, two adults can jointly open a POMIS account.
Can I open multiple POMIS accounts?
Yes, multiple accounts can be opened, but the total investment across all accounts should not exceed Rs 9 lakhs for single and Rs 15 lakhs for joint.
Is POMIS suitable for senior citizens?
Yes, POMIS account is suitable investment for retirees and senior citizens those who want a stable, fixed monthly income with low risk.
Can I transfer my POMIS account to another post office?
Yes, POMIS accounts can be transferred from one post office to another without extra charges.
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