Post Office MIS (Monthly Income Scheme) Interest Rate
This scheme last updated its deposit rates on 01-Jul-26.
Scheme Overview
POMIS is a pure income tool — a lump sum that pays a fixed amount into your account every single month for five years, with the principal returned intact at the end. Retirees and homemakers with a corpus to park often pair it with SCSS for a combined monthly-plus-quarterly income stream.
- Interest rate: 7.40% p.a., paid monthly (unchanged for the current quarter).
- Minimum / Maximum deposit: ₹1,000 minimum (multiples of ₹1,000). Maximum ₹9 lakh for a single account and ₹15 lakh for a joint account. An individual's total across all accounts cannot exceed ₹9 lakh; a minor's cap is ₹3 lakh.
- Tenure: 5 years. The account cannot be extended — reinvest in a fresh account if you wish to continue.
- Premature withdrawal: Not allowed in the first year. Closed between 1 and 3 years: a 2% penalty on the principal. Between 3 and 5 years: a 1% penalty.
- Eligibility: Resident individuals; joint accounts with up to 3 adults; minors aged 10+ (₹3 lakh cap).
- Tax benefit: No Section 80C benefit. Interest is fully taxable at your slab. There is no TDS, but you must declare the interest in your ITR.
- Payout: Fixed monthly interest, credited one month after the deposit and every month thereafter, into the linked savings account.
Illustration: ₹9 lakh at 7.40% pays about ₹5,550 a month; a ₹15 lakh joint account pays roughly ₹9,250 a month.
Government Schemes — At a Glance
| Scheme | Rate (p.a.) | Tenure | Max Deposit | Eligibility | Early Closure | Tax Benefit | Payout |
|---|---|---|---|---|---|---|---|
| 7.10% | 15 yrs | ₹1.5L / year | Residents | Conditional | Yes | At maturity | |
| 8.20% | 21 yrs | ₹1.5L / year | Girl child | Conditional | Yes | At maturity | |
| 8.20% | 5 + 3 yrs | ₹30 lakh | Age 60+ | Yes | Yes | Quarterly | |
| 7.70% | 5 yrs | No limit | Residents | No | Yes | At maturity | |
| 7.50% | 1–5 yrs | No limit | Residents | Yes | Yes | Annual | |
| 6.70% | 5 yrs | No limit | Residents | Yes | No | At maturity | |
| 7.40% | 5 yrs | ₹9L / ₹15L joint | Residents | Yes | No | Monthly | |
| 7.50% | 115 months | No limit | Resident | Yes | No | At maturity |
Interest rates are for the July–Sept 2026 quarter and are revised quarterly by the Ministry of Finance. This is for educational purposes and is not investment or tax advice — verify current figures on India Post or NSI before investing.
Frequently Asked Questions
The Post Office Monthly Income Scheme pays 7.4% per annum for the July–September 2026 quarter, credited monthly. The rate is fixed for the full 5-year term when you open the account. It is a popular choice for retirees seeking a predictable monthly income.
The maximum is ₹9 lakh in a single account and ₹15 lakh in a joint account (up to three adults). An individual's total across all POMIS accounts cannot exceed ₹9 lakh. The minimum deposit is ₹1,000, and a minor's limit is ₹3 lakh.
At 7.4%, ₹9 lakh pays about ₹5,550 a month, and a ₹15 lakh joint account pays roughly ₹9,250 a month. The interest is credited to your linked savings account every month. The principal is returned in full at the end of the 5-year term.
POMIS has a 5-year tenure and cannot be extended. To continue after maturity, you reinvest the principal in a fresh account at the prevailing rate. Monthly interest is paid throughout the term, with the deposit returned intact on maturity.
Premature withdrawal is not allowed in the first year. If you close between 1 and 3 years, a 2% penalty applies on the principal; between 3 and 5 years, a 1% penalty. The account also closes without any penalty on the holder's death.
Yes. POMIS offers no Section 80C benefit, and the monthly interest is fully taxable at your slab. There is no TDS, but you must declare the interest in your income-tax return. Pairing it with SCSS is common for a combined monthly-plus-quarterly income.
Any resident individual can open a POMIS account, singly or jointly with up to three adults. A minor aged 10 or above can hold one, subject to a ₹3 lakh cap, and a guardian may open one for a younger minor. NRIs are not eligible.