A major relaxation comes to the minds of people who invest in small savings schemes of post offices. One of the most important Post Office Scheme MIS (Monthly Income Scheme) has kept its rate of interest unchanged for the current quarter.
What is the Post Office Monthly Income Scheme (POMIS)?
It is one of the savings schemes backed by the government with a tenure of just 5 years. In it, you can earn interest every month and get it paid. It is a monthly payout scheme.
Earlier, its rate of interest for January 1, 2023, to March 31, was 7.10%. And for April 1, 2023, to June 30, 2025, it was 7.40%. Thus, it was increased.
What Is the POMIS Interest Rate for July-September 2025?
Currently, the Government of India has decided to keep the interest rate the same for the current quarter, that is, Q2 of the current financial year.
Thus, the current rate of interest for July to September 2025 is 7.40% per annum, which is unchanged from the previous one.
Read Also - Post Office FD Scheme - Safe Investment with Up to 7.5% Interest
Minimum and Maximum Deposits
The minimum deposit for availing the benefits of this scheme is ₹ 1000. In a single account, you can invest up to ₹ 9 lakh, while if you have a joint account, you can deposit up to ₹ 15 lakh.
How Much Do You Earn Monthly?
As you know, MIS is a monthly payout scheme, so interest is paid every month. Here's what you get in turn for different investments :
| Investment | Monthly Income |
|---|---|
| ₹ 1,00,000 | ₹ 617 |
| ₹ 5,00,000 | ₹ 3,083 |
| ₹ 9,00,000 | ₹ 5,550 |
| ₹ 15,00,000 (Joint limit) | ₹ 9,250 |
Thus, it is clear, if you deposit ₹ 1,00,000 in your account, you will get a monthly interest of ₹ 617, while if you invest ₹ 9,00,000, which is the maximum limit of an individual account, then you will get monthly income of ₹ 5,550 as per this scheme and its current interest.
If you have a joint account, then the maximum limit of investment rises to ₹ 15,00,000, and for it you will earn an interest of ₹ 9,250 per month.
How to calculate POMIS income?
Use this simple formula:
Monthly Income = Invested Amount × (7.4% ÷ 12)
Or try an online POMIS calculator.
Who Should Invest?
1) Retirees seeking a stable monthly cash flow.
2) People who do not want to take risks and prefer government‑guaranteed returns.
3) Homemakers or fixed‑income dependents.
4) POMIS suits anyone wanting fixed income without market volatility.
Eligibility:
1) It is available only to Indian residents.
2) NRIs are not eligible.
3) Any adult over 18 years of age is eligible.
4) Any minor above 10 years of age is eligible to avail the benefits of this scheme with the help of a guardian.
Tax Benefits: What You Need to Know?
1) It is not eligible for Section 80C tax deduction.
2) Interest is taxable, but no TDS is deducted as long as the monthly interest is ≤ ₹10,000.
3) Senior citizens may be eligible for tax relief under Section 80TTB (on interest income) if applicable.
Also Read - Earn 8.2% Interest! Senior Citizens' Savings Scheme Backed by Government
How to Open a POMIS Account?
To open a POMIS account, follow these instructions:
1) Ensure you have a Post Office Savings Account. If you do not have it, open one.
2) Visit your nearest India Post branch and fill out the POMIS account form.
3) Submit your required documents, such as -
- Identity proof
- Address proof
- Passport-sized photos
- Cheque or cash deposit (min ₹1,000, multiple of ₹1,000)
5) Interest begins one month after the deposit date and is paid monthly via ECS and is auto credited to your account.
FAQs
Can NRIs invest?
No, NRIs can not invest in POMIS. It is exclusive for Indian residents only.
Can you withdraw early?
No, withdrawals aren't permitted in the first year. However, you can withdraw after the completion of the first year. If you choose to withdraw before maturity, a penalty is applied. If you withdraw within the time frame of 1–3 years, then 2% penalty on the principal is applied. And if you choose to withdraw from 3–5 years, then 1% penalty is applied.
Is interest taxable?
Yes, the interest you earned under this scheme is fully taxable. Senior citizens may qualify for 80TTB relief.
Summary
The rate of interest remains steady at 7.4% for July–September 2025.
Post Office MIS is ideal for retirees, homemakers, and people who want fixed returns.
Monthly payouts, capital protection, and no TDS (if income ≤₹10K).
Simple to open at any India Post branch with standard documentation.
Are you planning for a fixed monthly income? If yes, then you should go with the Post Office Monthly Income Scheme (MIS).
Curious how it stacks up against FD, SCSS, or NSC? Just let me know—I can help you compare.
Read Also -
Can PPF Account Be Transferred? Complete Guide for Banks, Branches & Post Offices
