What is POMIS?
The Post Office Monthly Income Scheme (POMIS) is a safe, government-backed savings scheme that provides a guaranteed monthly income. It is ideal for senior citizens, retirees, and conservative investors who want steady cash flow without market risk.
Key Features & Benefits
- Interest Rate: Currently 7.4% p.a., paid monthly.
- Investment Limits: ₹9 Lakhs for single account, ₹15 Lakhs for joint account (up to 3 adults).
- Tenure: Fixed 5-year lock-in period.
- Capital Safety: 100% guaranteed by the Government of India.
- Taxation: Interest is fully taxable as “Income from Other Sources”. No TDS by Post Office.
POMIS Income Matrix (at 7.4%)
| Investment | Monthly Income | Total Interest (5 Years) |
|---|---|---|
| ₹1,00,000 | ₹617 | ₹37,000 |
| ₹5,00,000 | ₹3,083 | ₹1,85,000 |
| ₹9,00,000 (Max Single) | ₹5,550 | ₹3,33,000 |
| ₹15,00,000 (Max Joint) | ₹9,250 | ₹5,55,000 |
POMIS Monthly Income Formula
POMIS pays simple interest every month, so the monthly payout is calculated directly on the deposit amount:
Monthly Income = (P × r) ÷ 12
P= Deposit amount (up to ₹9L single / ₹15L joint)
r= Annual interest rate as decimal (0.074 for 7.4%)
Note: Unlike NSC or KVP, POMIS interest is simple (not compounded) and is paid out monthly instead of accumulating. The principal you invest is returned in full at maturity (5 years), unless you close early and pay the premature closure penalty.
🧮Example: ₹9,00,000 POMIS Deposit
Deposit (P):
₹9,00,000
Interest Rate (r):
7.4% p.a.
Tenure:
5 years
Step 1: Apply the Formula
Monthly Income = (9,00,000 × 0.074) ÷ 12
= 66,600 ÷ 12 = ₹5,550
Guaranteed Monthly Income:
₹5,550 / month
Total Interest (5 Years):₹3,33,000
Principal Returned at Maturity:₹9,00,000