Post Office Monthly Income Scheme: The Post Office Monthly Income Scheme (POMIS) 2026 is a popular savings option for people who want a regular monthly income from their savings. It is especially useful for retirees, senior citizens, families and investors who prefer a government-backed savings scheme instead of taking high investment risks. Under this scheme, you deposit a lump sum amount for a fixed period and receive interest every month.
For the October–December 2026 quarter, the scheme offers an interest rate of 7.4% per annum. You can invest up to ₹9 lakh in a single account or ₹15 lakh in a joint account, subject to the scheme’s rules. The account has a five-year maturity period, and the monthly interest can help cover regular expenses such as groceries, electricity bills, medicines and other household costs.
Post Office Monthly Income Scheme
The Post Office Monthly Income Scheme is a small savings scheme offered through India’s post office network. It is designed for people who want to receive interest regularly rather than wait until the end of an investment period to receive their returns.
Under this scheme, you deposit a fixed amount when opening the account. The deposit remains invested for five years, and interest is paid monthly at the applicable rate. The original deposit is returned when the account reaches maturity, subject to the scheme’s rules.
For example, if you invest ₹5 lakh at an annual interest rate of 7.4%, the interest works out to approximately ₹3,083 per month. This gives you a predictable income stream during the investment period, although the actual interest rate applicable to a new account depends on the rate notified for the relevant period.
Post Office Monthly Income Scheme 2026 Overview
| Particulars | Details |
|---|---|
| Scheme Name | Post Office Monthly Income Scheme (POMIS) |
| Also Known As | Monthly Income Scheme (MIS) |
| Managed By | Department of Posts, Government of India |
| Interest Rate | 7.4% per annum |
| Rate Period Covered | 1 October to 31 December 2026 |
| Minimum Deposit | ₹1,000 |
| Deposit Requirement | In multiples of ₹1,000 |
| Maximum Single Account Deposit | ₹9 lakh |
| Maximum Joint Account Deposit | ₹15 lakh |
| Interest Payment | Monthly |
| Maturity Period | 5 years |
| Premature Closure | Permitted after one year, subject to deductions |
| Eligible Applicants | Adults, eligible joint holders, minors aged 10 or above in their own name, and guardians on behalf of eligible minors |
Post Office MIS Interest Rate 2026
The Post Office Monthly Income Scheme offers 7.4% annual interest for the October–December 2026 quarter. The Government of India has kept the small savings scheme rates unchanged for this quarter.
The interest rate is important because it determines how much money you receive every month. The higher your deposit, the higher your monthly interest, provided the same rate applies and your investment remains within the permitted limit.
Interest is paid monthly rather than being added to the deposit to earn further interest. Therefore, the scheme is suitable for people who want regular cash flow instead of a compounding investment.
Keep in mind that the rate applicable to a new account is determined by the government notifications in force when the account is opened. If you are planning to invest later, check the official India Post website or the National Savings Institute for the latest rate.
How Much Monthly Income Can You Earn from Post Office MIS?
The monthly income depends on the amount you invest and the annual interest rate. At 7.4% per annum, the approximate monthly interest is calculated by dividing the annual interest by 12.
The following table shows the approximate monthly interest at different investment amounts.
| Investment Amount | Approximate Monthly Interest | Approximate Annual Interest |
|---|---|---|
| ₹50,000 | ₹308 | ₹3,700 |
| ₹1,00,000 | ₹617 | ₹7,400 |
| ₹2,00,000 | ₹1,233 | ₹14,800 |
| ₹3,00,000 | ₹1,850 | ₹22,200 |
| ₹5,00,000 | ₹3,083 | ₹37,000 |
| ₹6,00,000 | ₹3,700 | ₹44,400 |
| ₹9,00,000 | ₹5,550 | ₹66,600 |
| ₹15,00,000 | ₹9,250 | ₹1,11,000 |
These figures are rounded estimates based on a 7.4% annual rate. The ₹15 lakh example applies to an eligible joint account, not a single account. Actual payments follow the scheme’s applicable calculation and account rules.
Example of a ₹5 Lakh Investment
Suppose you deposit ₹5 lakh in a Post Office Monthly Income Scheme account at 7.4% annual interest. The annual interest would be ₹37,000, which works out to approximately ₹3,083 per month.
Over five years, the total interest would be approximately ₹1,85,000 if the rate remains applicable to the account throughout the period and all monthly payments are received as scheduled. The original deposit of ₹5 lakh would be payable at maturity under the scheme rules. This example is for illustration and does not include any tax that may apply to the interest.
Minimum and Maximum Deposit Limits
The scheme has defined deposit limits, so investors should decide how much to deposit before opening an account. The minimum deposit is ₹1,000, and deposits must be made in multiples of ₹1,000.
The maximum amount allowed in a single account is ₹9 lakh. For an eligible joint account, the maximum is ₹15 lakh. These limits apply under the scheme’s rules, including the restrictions on the total amount an individual can hold across their MIS accounts.
| Account Type | Maximum Deposit Limit |
|---|---|
| Single Account | ₹9 lakh |
| Joint Account | ₹15 lakh |
A joint account can be opened by up to three adults. Each joint holder is treated as having an equal share for calculating their permitted investment limit. This is important if one person already has another MIS account, because the scheme’s overall deposit ceiling still applies.
Before depositing money, ask the post office to confirm how the limits apply to your existing single or joint accounts. This can help prevent an excess deposit or a later correction.
Who Can Open a Post Office Monthly Income Scheme Account?
The scheme is available to eligible individuals under the National Savings (Monthly Income Account) Scheme rules. Applicants should confirm the current account-opening requirements with their post office before submitting an application.
Eligible account holders generally include:
- A single adult: An eligible adult can open an individual MIS account in their own name, subject to the deposit limit.
- Joint account holders: Up to three eligible adults can open an account together. The account is operated according to the joint-account instructions selected at the time of opening.
- A minor aged 10 years or above: A qualifying minor can open and operate an account in their own name as permitted under the scheme rules.
- A guardian on behalf of a minor: A parent or other legally eligible guardian can open an account for a minor, following the applicable requirements.
Opening an account does not remove the deposit restrictions. The maximum permitted investment must still be followed, including where a person holds more than one account or has a share in a joint account.
Documents Required to Open a Post Office MIS Account
Applicants should take the documents and information required by the post office for account opening. The exact requirements can depend on the applicant’s circumstances and the current account-opening process.
- Account-opening form: Complete the prescribed form with accurate personal details and the amount you want to deposit.
- Identity proof: Provide an accepted identity document, such as Aadhaar or another document permitted by the post office.
- Address proof: Submit an accepted document showing your current address.
- PAN details: PAN may be required for financial and tax-related compliance, depending on the applicable rules.
- Photographs: Carry recent passport-size photographs if required by the post office.
- Deposit amount: Arrange the initial deposit in accordance with the scheme’s minimum and maximum limits.
- Joint-holder or guardian documents: If the account is joint or opened for a minor, the post office may require the relevant identity details and supporting documents.
Before visiting the post office, check the current list of accepted documents and payment methods. Make sure the names and other details are consistent across your records to reduce the chance of delays.
How to Open a Post Office Monthly Income Scheme Account
Opening an MIS account generally involves visiting a post office that provides the service and completing the required account-opening formalities. Applicants should verify the current procedure and accepted payment methods before making a deposit.
- Visit a post office: Go to a post office that offers the Monthly Income Scheme and ask for the MIS account-opening form.
- Complete the application form: Enter your name, address, identification details, nominee information and other requested particulars.
- Choose the deposit amount: Decide how much you want to invest, keeping the minimum and maximum deposit limits in mind.
- Submit the required documents: Provide the identity, address and other documents requested for your account type.
- Make the deposit: Deposit the amount using an accepted payment method and follow the post office’s instructions.
- Collect your account details: Keep the passbook, receipt or other account-opening record safely for future reference.
- Confirm the interest payment arrangements: Ask how monthly interest will be credited or paid and what steps are needed if you want it transferred to an eligible savings account.
Always check the account details before leaving the post office. Keeping your receipt and account records safe can help you resolve any future payment or service issue.
Post Office MIS Maturity Period and Withdrawal Rules
The Post Office Monthly Income Scheme has a five-year maturity period. During this period, the account holder receives interest every month, while the original deposit remains invested according to the scheme rules.
If you keep the account until maturity, you can claim the deposit amount at the end of the five-year term. It is important to plan your investment around this period because withdrawing the money early can lead to a deduction from the deposit.
The scheme allows premature closure after one year, subject to the prescribed conditions:
- Closure before three years: If the account is closed after one year but before the completion of three years, 2% of the deposited amount is deducted.
- Closure after three years but before five years: If the account is closed after three years but before maturity, 1% of the deposited amount is deducted.
- Closure before one year: Premature closure is generally not permitted during the first year under the scheme rules.
For example, if an account with a deposit of ₹5 lakh is closed after two years, the 2% deduction would be ₹10,000. If the same amount is closed after three years but before maturity, the 1% deduction would be ₹5,000. These examples illustrate the deposit deductions and do not include any other adjustments that may apply.
Because early closure reduces the amount returned, it is better to invest money that you do not expect to need immediately. Check the applicable scheme rules with the post office before requesting premature closure.
Tax on Post Office Monthly Income Scheme Interest
The monthly interest received from POMIS should not automatically be treated as tax-free income. Interest is generally taxable according to the applicable income tax rules and the account holder’s individual circumstances.
The scheme’s interest payment is separate from the original deposit. The tax treatment of the interest may depend on your total income, the tax regime applicable to you and the rules in force for the relevant financial year.
Before investing, consider how the monthly interest will affect your overall taxable income. If you are unsure about your tax position, consult a qualified tax professional or refer to the official income tax guidance. Do not assume that investing through a post office automatically makes the interest exempt from tax.
Advantages of the Post Office Monthly Income Scheme
POMIS can be useful for investors who value predictable payments and want to avoid exposure to the day-to-day movement of the stock market. However, its benefits should be considered alongside its limits.
- Regular monthly income: The scheme pays interest monthly, making it easier to plan routine household expenses or supplement other income.
- Government-backed small savings scheme: It is part of the government’s small savings programme and follows prescribed rules, providing a different risk profile from market-linked investments.
- Clear investment limits: The minimum deposit and maximum account limits make it easier to understand how much can be invested.
- Fixed investment period: The five-year term provides a clear maturity date for financial planning.
- Access through post offices: Applicants can use participating post offices for account-opening and service-related support.
These features can make POMIS suitable for people who need regular income from savings. Still, it is important to compare the scheme with other options and consider inflation, tax and your need for access to the original deposit.
Disadvantages and Important Things to Consider
Although POMIS offers regular interest payments, it may not be suitable for every investor. Understanding the limitations before opening an account can help you make a better decision.
First, the deposit is generally committed for five years if you want to avoid premature-closure deductions. People who may need a large amount of money unexpectedly should keep enough emergency savings separately.
Second, the monthly interest is paid out rather than added to the deposit to generate further interest. This means the scheme is designed primarily for income, not for maximising long-term compounding.
Third, interest is subject to applicable tax rules, so the amount you keep after tax may be lower than the gross interest shown in an example. Inflation can also reduce the purchasing power of the income over time.
Finally, the interest rate for new accounts can change when the government revises small savings rates. Check the rate applicable to the period in which you plan to open the account instead of relying on an old advertisement or calculation.
Is Post Office Monthly Income Scheme 2026 a Good Investment?
POMIS may be a suitable option for people who have a lump sum available and want a predictable monthly payment over five years. Retirees, families seeking a supplementary income stream and conservative savers may find the monthly payout helpful.
However, it is important to match the scheme to your financial goals. If you need to build wealth over a long period, require quick access to your money or want returns that may grow with the market, other financial products may better fit your needs. Those alternatives can also involve different levels of risk.
Before investing, calculate the expected monthly interest, consider the tax impact and keep sufficient money available for emergencies. You should also verify the current rate and deposit rules through official government information.
FAQs
The interest rate is 7.4% per annum for the October–December 2026 quarter.
At 7.4% annual interest, a ₹9 lakh single-account deposit earns approximately ₹5,550 per month before any applicable tax.
Yes, premature closure is generally permitted after one year, subject to a 2% deduction before three years or a 1% deduction after three years but before maturity.
The Post Office Monthly Income Scheme 2026 offers regular monthly interest at 7.4% per annum for the October–December quarter, with a five-year maturity period. Check the latest official rules, calculate your expected income and choose an investment amount that suits your financial needs.
Meera Joshi is the Founder and Content Writer of Indian Fast Job Alert. She has been working in the education and government job information sector since 2015. With more than 10 years of experience, she specializes in creating accurate, easy-to-understand, and regularly updated content related to Sarkari Jobs, Government Recruitment, Admit Cards, Results, Answer Keys, Scholarships, Admissions, and Exam Updates.