What is POMIS?
The Post Office Monthly Income Scheme turns a one-time deposit into a fixed monthly payout. It currently pays 7.4% per annum (Q2 FY 2026-27, July to September 2026) for a 5-year term. The rate you get at opening stays locked for the whole tenure, so there is no market risk and no payout surprise.
The Limits and Rules
You can deposit between ₹1,000 and ₹9 lakh in a single account, or up to ₹15 lakh in a joint account, limits that were raised in Budget 2023. The scheme runs for 5 years, and your full principal comes back at maturity. Only the interest is paid out monthly, so the deposit itself does not grow. At the maximum single deposit, ₹9 lakh pays ₹5,550 a month; the ₹15 lakh joint maximum pays ₹9,250. The interest is taxable at your slab, and the deposit has no 80C benefit.
Who is POMIS Right For?
It suits retirees and conservative savers who want certain monthly cash flow. If you are a senior citizen, check SCSS at 8.2% first, since it pays more. The scheme's main limitation is inflation: a fixed payout buys a little less every year, which you can quantify with the inflation calculator. Pairing POMIS with some growth assets protects the later years.
How to Get the Most From POMIS
A joint account raises the ceiling to ₹15 lakh, with each holder's share counting toward their personal ₹9 lakh limit. Set the payout to auto-credit into your savings account, and if you do not spend all of it, sweep the surplus into a post-office RD so the fixed income goes back to compounding. And when the 5 years end, do not roll over on autopilot: compare the then-current POMIS rate against SCSS if you have become eligible, the 5-year post-office time deposit, and bank FDs — our overview of every post-office scheme lines the whole family up in one place.
POMIS Compared With the Alternatives
Against a monthly-payout bank FD, POMIS offers a government-locked rate that is usually competitive, while FDs offer flexible amounts, tenures and senior-citizen premiums. Against an annuity, POMIS returns your principal after 5 years, whereas an annuity locks your capital for life. Against an SWP from a debt fund, the SWP can be more tax-efficient but carries market risk. The right mix depends on how much certainty your monthly budget genuinely needs.