Post Office Monthly Income Scheme (POMIS) interest rate for October-December 2026

For retirees and others using the scheme as a pension-like income stream, the ministry's decision means the monthly payout under this scheme will remain what it has been since April 1, 2023: ₹ 5,550 a month on the maximum single-account deposit of ₹9 lakh.

Interest rates of all small savings schemes for October-December 2026

POMIS details

The POMIS helps converts a lump sum into a fixed monthly payout for five years. A single account can hold between ₹1,000 and ₹9 lakh, and a joint account up to ₹15 lakh.

The POMIS interest is paid out every month, which is ₹62 for every ₹10,000 invested. The interest is, however, taxable at slab rate. Premature closure of a POMIS account is not allowed in the first year. While it is allowed later, premature closure attracts a 2% deduction of the deposit between one and three years, and 1% after three years.

POMIS interest rate history

Government data show the POMIS rate climbed from 6.6% in 2020-21 to 7.1% in January 2023 and 7.4% from April 2023, where it has stayed since.

Under the Shyamala Gopinath Committee framework, the five-year POMIS is benchmarked to the 5-year G-sec with a 25-basis-point spread.

The 5-year G-sec averaged roughly 6.5% over the July-September reference quarter, implying a formula rate of about 6.75% against the 7.4% actually paid.

The monthly payout under this scheme is fixed at the time of opening. So accounts started during the October-December quarter will earn 7.4% for five years on the terms booked at entry.

For senior citizens comparing income options, the SCSS at 8.2% still pays more at ₹6,150 a month on ₹9 lakh against the POMIS's ₹5,550. However, SCSS requires the account holder to be 60 or above.

POMIS is the post office's only monthly-income product with no age restriction, and with bank FD rates lower after the RBI's 2025 cuts, its 7.4% continues to rank among the best guaranteed income rates available.