The Post Office Monthly Income Scheme (POMIS) is one of the most reliable and secure investment options in India, designed for those who want a steady source of monthly income. With a guaranteed 7.4% annual interest rate (as of 2025), this scheme is a great choice for risk-averse investors, retirees, and those seeking passive income.
If you invest the maximum permissible limit under a joint account (₹15 lakh), you will receive a monthly payout of ₹9,250—ensuring financial security for individuals and couples alike.
Post Office Monthly Income Scheme (POMIS)
| Feature | Details |
|---|---|
| Interest Rate | 7.4% (as of 2025) |
| Payout | Monthly interest earnings |
| Maximum Investment | ₹9 lakh (single) / ₹15 lakh (joint) |
| Tenure | 5 years |
| Premature Withdrawal | Allowed with penalties |
| Taxability | No TDS, but taxable under income tax |
| Where to Apply? | Nearest Post Office (India Post) |
The Post Office Monthly Income Scheme (POMIS) is a safe, government-backed investment option for those seeking fixed monthly income. With an attractive 7.4% annual interest rate, this scheme provides financial security without market risks. Whether you are a retiree, a conservative investor, or someone looking for guaranteed passive income, POMIS is a great choice.
What is the Post Office Monthly Income Scheme (POMIS)?
POMIS is a government-backed savings scheme that allows individuals to invest a lump sum amount and receive fixed monthly interest payouts. The investment remains secure, and the returns are guaranteed, making it ideal for individuals looking for a reliable source of passive income.
This scheme is especially beneficial for retirees, senior citizens, and conservative investors who prefer risk-free returns over market-linked investments.
How Does POMIS Work?
- You invest a lump sum amount in POMIS at a post office.
- The government provides a fixed interest rate (currently 7.4% per annum).
- The interest is paid monthly into your linked savings account.
- After 5 years, you can withdraw the principal amount or reinvest it.
- Premature withdrawal is possible after 1 year with a penalty.
Example Calculation:
- If you invest ₹15 lakh (joint account), you will receive ₹9,250 per month.
- If you invest ₹9 lakh (single account), you will receive ₹5,550 per month.
Benefits of Investing in POMIS
Guaranteed Returns
Your investment is 100% secure, backed by the Government of India. Unlike stocks or mutual funds, your capital and returns are not affected by market fluctuations.
Monthly Payouts for Regular Income
POMIS provides consistent monthly income, making it perfect for retirees or anyone needing a steady cash flow.
Easy to Open and Manage
You can open an account at any post office with minimal paperwork. The scheme is simple to understand and manage.
Joint Account Facility
Husband and wife can open a joint account and invest up to ₹15 lakh, earning ₹9,250 per month.
Flexible Withdrawal Options
While the scheme has a 5-year lock-in, you can withdraw early with a small penalty if needed.
see also: PNB Interest Rates: Latest Loan Rates and Offers After SBI’s Rate Cut
Eligibility & Account Types
Who Can Invest in POMIS?
Indian residents aged 18 years or above. Minors aged 10 and above (Account operated by a guardian) Joint accounts allowed (Up to 3 people)
Types of Accounts:
- Single Account: Maximum investment of ₹9 lakh
- Joint Account (up to 3 people): Maximum investment of ₹15 lakh
How to Open a POMIS Account?
Opening a POMIS account is easy. Follow these steps:
Step 1: Visit Your Nearest Post Office
Find your nearest India Post branch or visit India Post.
Step 2: Collect & Fill Out the Application Form
Ask for the POMIS application form and fill in the required details.
Step 3: Provide Required Documents
Submit the following:
- Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID
- Address Proof: Aadhaar, Utility Bill, Rent Agreement
- Passport-sized photographs
Step 4: Deposit the Amount
Make the investment using cash, cheque, or demand draft.
Step 5: Link a Savings Account for Monthly Interest Payouts
Provide details of a post office savings account or any bank account to receive monthly interest.
Premature Withdrawal Rules
| Withdrawal Time | Penalty |
|---|---|
| Before 1 year | Not Allowed |
| 1 to 3 years | 2% penalty on principal |
| 3 to 5 years | 1% penalty on principal |
Tax Implications
- No TDS (Tax Deducted at Source) on interest earned.
- Interest is fully taxable and must be declared in your Income Tax Return (ITR).
- No tax benefits under Section 80C.
see also: Post Office Mahila Samman Savings Certificate (MSSC) 2025
Post Office Monthly Income Scheme FAQs
1. Can NRIs invest in POMIS?
No, Non-Resident Indians (NRIs) are not eligible to invest in POMIS.
2. Is the POMIS interest rate fixed?
The interest rate is subject to periodic revisions by the government. However, once you invest, your rate remains fixed for 5 years.
3. Can I transfer my POMIS account?
Yes, you can transfer your POMIS account to any post office in India.
4. Is it better than a Fixed Deposit (FD)?
POMIS offers monthly payouts and better liquidity, making it ideal for regular income seekers. However, FDs may offer higher returns with reinvestment options.
5. What happens after 5 years?
You can withdraw your principal or reinvest it in a new POMIS account.
