₹15 Lakh in POMIS: ₹9,250/Month — Is It Worth It?

Post Office Monthly Income Scheme pays 7.4% per year on up to ₹15 lakh in a joint account. You get a fixed ₹9,250 every month for 5 years — no market risk, government-backed, but interest is fully taxable.

Here's what happened: POMIS currently offers 7.4% annual interest, paid monthly — the rate is set by the government each quarter and has held steady recently.. A joint POMIS account allows a maximum deposit of ₹15 lakh; individual accounts are capped at ₹9 lakh.. The post office deducts NO TDS on interest, but you must declare the income in your ITR and pay tax as per your income slab..

What you should do: Calculate your post-tax return first — if you are in the 30% tax slab, your effective yield drops from 7.4% to about 5.1%, which is barely better than a savings account.. Open a joint POMIS account with a spouse or parent to unlock the ₹15 lakh limit instead of the ₹9 lakh individual cap — visit your nearest post office with KYC documents for both.. Set a calendar reminder for your POMIS maturity date (5 years) — you can reinvest the principal for another term to keep the monthly income flowing without interruption..

POMIS interest can be auto-credited to a Post Office Savings Account and then swept into a linked RD — you effectively reinvest your monthly payout and compound your returns without any manual effort.