Imagine receiving a guaranteed "salary" from the government every month without working. The National Savings Monthly Income Account (MIS), popularly known as POMIS, does exactly that. It is the safest way to generate regular cash flow for retirees, homemakers, and conservative investors.

Current POMIS Interest Rate (2026)

📅 Interest Rate: 7.4% p.a.

For the quarter ending March 2026, the POMIS interest rate is 7.4% per annum, payable monthly. Unlike FDs where you might choose quarterly payouts, POMIS is strictly monthly.

Investment Limits (Enhanced)

Since the 2023 Budget update, the deposit limits remain higher for 2026:

  • Single Account: Max ₹9 Lakh.
  • Joint Account: Max ₹15 Lakh.

POMIS Monthly Income Calculator 2026

How much will you get in your bank account every month? Let's calculate based on 7.4% interest.

Investment Amount Account Type Monthly Income (Payout) Total Interest (5 Years)
₹1.0 Lakh Single ₹617 / month ₹37,000
₹5.0 Lakhs Single ₹3,083 / month ₹1.85 Lakhs
₹9.0 Lakhs (Max Single) Single ₹5,550 / month ₹3.33 Lakhs
₹15.0 Lakhs (Max Joint) Joint ₹9,250 / month ₹5.55 Lakhs

Key Features & Rules

  • Tenure: 5 Years fixed.
  • Payout Mode: Auto-credit to Post Office Savings Account or ECS to any Bank Account.
  • Joint Account: Up to 3 adults can join. Income is taxable equally.
  • Premature Closure:
    • Before 1 year: Not allowed.
    • 1-3 years: 2% deduction from principal.
    • 3-5 years: 1% deduction from principal.

Is POMIS Tax-Free?

No. The interest earned is added to your total income and taxed as per your slab. However, there is no TDS deducted by the Post Office.

💡 Expert Verdict: The Monthly Income King?

For retirees who need guaranteed monthly cash flow, POMIS (7.4%) is unmatched in safety. However, for senior citizens, SCSS (8.2%) offers a higher rate (paid quarterly).

Strategy: Use SCSS for the first Rs 30 Lakhs (highest rate), then use POMIS for additional corpus up to Rs 9 Lakhs.

Conclusion

If you have a lump sum (e.g., retirement corpus) and need regular expenses covered, POMIS is unbeatable for safety. A retired couple can open individual accounts or a joint account to maximize the monthly inflow up to ₹9,250.