SEBI REGISTERED INVESTMENT ADVISER INA000022260
POMIS
Estimate monthly interest from the Post Office Monthly Income Scheme — investment amount, rate, and lock-in period.
For education and planning illustration only. POMIS rates, deposit limits, and premature withdrawal rules are set by the Government of India and can change. Interest is taxable.
The Post Office Monthly Income Scheme (POMIS) is a government-backed, low-risk deposit that pays a fixed monthly interest. It is popular with retirees and anyone who wants predictable passive income without market risk.
Interest rates are set by the Ministry of Finance and can change from time to time. The usual lock-in period is 5 years, after which the principal is returned.
Monthly interest is calculated with simple interest:
Mr A invests ₹1,00,000 for 5 years at 7.4% p.a.
Monthly income = (1,00,000 × 7.4%) ÷ 12 = ₹616.67 (shown as ₹617 when rounded).
Over 5 years, total interest is about ₹37,000, and the ₹1,00,000 principal is returned at maturity.
Yes. Interest earned on POMIS is taxable as per your income tax slab. There is no Section 80C deduction on the deposit itself.
Because returns are fixed and taxable, compare post-tax income with other options before investing a large amount.
