Post Office Monthly Income Scheme 2026: Looking for a reliable way to generate regular income without investing in the stock market? The Post Office Monthly Income Scheme (POMIS) offers an opportunity to earn fixed monthly interest by making a one-time deposit. With an annual interest rate of 7.4%, eligible investors can receive up to ₹9,250 every month, depending on their investment amount and account type.

Financial planning becomes increasingly important as retirement approaches. While salaried individuals receive regular earnings during their working years, maintaining the same financial stability after retirement can be challenging. Monthly expenses such as groceries, electricity bills, healthcare and household maintenance continue even when employment income stops.

For individuals seeking predictable returns and capital security, the government-backed Post Office Monthly Income Scheme could be worth considering. Here is a detailed explanation of its interest rate, investment limits, monthly earnings, maturity period and withdrawal conditions.

What Is the Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme is a small savings programme offered through India Post. It allows individuals to deposit a lump sum and receive interest payments every month for a fixed period of five years.

Unlike market-linked investment products, where returns depend on market performance, POMIS provides a predetermined interest rate throughout the account's tenure.

The scheme is particularly suitable for individuals who prefer stable earnings over potentially higher but uncertain investment returns.

Another important feature is its relatively low entry requirement. Investors can open an account with just ₹1,000, making the scheme accessible to people with different financial capacities.

Post Office MIS Interest Rate in November 2026

The Post Office Monthly Income Scheme currently offers an annual interest rate of 7.4%, according to the rate stated for November 2026.

Interest is calculated on the deposited amount and paid monthly. The applicable rate is fixed when the account is opened and remains unchanged until maturity, even if the government subsequently revises rates for new deposits.

For example, someone investing ₹5 lakh at 7.4% annually would receive approximately ₹3,083 per month.

However, investors should remember that the monthly payment represents interest income, not repayment of the original deposit.

Minimum and Maximum Investment Limits

India Post has established investment limits for individual and joint accounts.

The minimum deposit is ₹1,000, and investments must be made in multiples of ₹1,000.

Under the current structure, an individual can invest up to ₹9 lakh in a single account. A joint account can hold deposits of up to ₹15 lakh, with a maximum of three adult account holders.

These limits apply to the aggregate holdings of an individual across MIS accounts, subject to the applicable ownership rules.

Investors planning to deposit larger amounts should carefully check the account structure and eligibility requirements before opening an account.

Post Office MIS Calculator: Monthly Returns on ₹1 Lakh to ₹15 Lakh

The monthly income depends on the amount deposited. At an annual interest rate of 7.4%, the estimated returns are as follows:

Note: Figures are calculated using a 7.4% annual interest rate. Monthly amounts are rounded where necessary. The ₹15 lakh investment limit applies to eligible joint accounts.

For instance, a couple depositing ₹15 lakh in a joint MIS account could receive ₹9,250 every month. Over five years, their total interest income would amount to ₹5,55,000, assuming the monthly payments are received throughout the tenure.

The original ₹15 lakh deposit would be repayable at maturity, subject to the scheme's terms.

What Happens After the Five-Year Maturity Period?

The Post Office Monthly Income Scheme has a maturity period of five years from the date the account is opened.

During this period, investors receive monthly interest payments. Once the account reaches maturity, the deposited principal becomes payable.

Those wishing to continue earning monthly interest may consider opening another MIS account using the maturity proceeds, provided they satisfy the applicable eligibility conditions.

However, the interest rate available on a new account may differ from the rate offered on the previous investment.

Premature Withdrawal Rules and Penalties

Although POMIS is designed for five-year savings, investors can close their accounts before maturity under specified conditions.

Accounts cannot ordinarily be closed within the first year of opening.

If an account is closed after completing one year but before three years, a deduction equal to 2% of the principal is applicable.

For accounts closed after three years but before five years, the deduction is reduced to 1% of the deposited amount.

For example, an investor prematurely closing a ₹5 lakh account during the second year would face a principal deduction of ₹10,000.

Therefore, investors should avoid depositing money they may need for emergencies or immediate financial commitments.

Is Post Office MIS Interest Tax-Free?

One important consideration is taxation.

Interest earned through the Post Office Monthly Income Scheme is taxable according to the investor's applicable income tax provisions.

The scheme does not provide a general income tax deduction under Section 80C for the amount invested.

Consequently, the actual post-tax return may be lower than the advertised 7.4% annual interest rate, depending on the investor's taxable income.

Investors should calculate their expected tax liability before deciding how much to deposit.

Who Can Benefit From This Savings Scheme?

The Post Office Monthly Income Scheme may be useful for retirees seeking an additional income stream, individuals without regular pension payments, and conservative investors who prioritise predictable earnings.

It can also appeal to families with accumulated savings who want to generate monthly income while avoiding direct exposure to stock market fluctuations.

Nevertheless, the scheme has limitations. Its returns may not always keep pace with inflation, and the five-year tenure reduces flexibility for those who need immediate access to their savings.

Investors should therefore maintain adequate emergency funds and consider diversifying their investments instead of relying entirely on one savings product.

How to Open a Post Office MIS Account

Eligible individuals can visit a post office offering savings bank services and request the Monthly Income Scheme account-opening form.

Applicants generally need to complete the required documentation, provide identity and address verification, fulfil applicable KYC requirements and deposit the chosen investment amount.

For joint accounts, the details and documentation of all account holders may be required.

Investors should confirm the latest account-opening procedure, nomination requirements and accepted payment methods with India Post.

Final Takeaway

The Post Office Monthly Income Scheme offers a practical option for individuals seeking regular interest payments from a government-backed savings product.

At an annual rate of 7.4%, a single-account investment of ₹9 lakh can generate ₹5,550 per month, while an eligible joint-account deposit of ₹15 lakh can provide ₹9,250 monthly.

However, the scheme should be evaluated alongside inflation, taxation, liquidity requirements and long-term financial goals. Checking the latest official terms before investing can help individuals make a more informed decision.