The Post Office Monthly Income Scheme (POMIS) is a government-backed savings plan designed to provide a safe and steady income for investors. With a guaranteed interest rate and zero market risk, this scheme is a perfect option for those seeking secure financial growth while earning fixed monthly returns.
If you’re looking for an investment that guarantees returns, POMIS is an excellent choice. Whether you’re a retiree seeking a monthly income, a risk-averse investor, or someone planning for financial stability, this scheme offers attractive benefits with no risk of capital loss.
Great Returns Without Any Risk with This Post Office Scheme
| Feature | Details |
|---|---|
| Interest Rate | 7.4% per annum (as of latest update) |
| Investment Limit | ₹1,000 (minimum), ₹9 lakh (individual), ₹15 lakh (joint account) |
| Tenure | 5 years |
| Monthly Payout | Yes (Fixed interest credited every month) |
| Risk Factor | Zero (Government-backed) |
| Tax Benefits | No TDS, but interest is taxable |
| Premature Withdrawal | Allowed with penalties (1-2%) |
| Official Source | India Post |
The Post Office Monthly Income Scheme (POMIS) is a safe, risk-free investment that guarantees steady monthly income. With an attractive 7.4% interest rate, capital protection, and zero risk, it’s an excellent option for anyone seeking financial security and passive income.
What Is the Post Office Monthly Income Scheme (POMIS)?
POMIS is a fixed-income investment plan offered by the Indian Post Office. It enables investors to deposit a lump sum and receive monthly interest payouts at a fixed rate. Since the scheme is backed by the Government of India, it is one of the safest investment options available.
How Does It Work?
- You invest a lump sum amount (₹1,000 to ₹9 lakh for individuals, ₹15 lakh for joint accounts).
- Interest is calculated at a fixed rate (currently 7.4% per annum).
- Monthly interest is credited directly to your Post Office savings account.
- Your principal is returned after 5 years, ensuring safe capital preservation.
- You can reinvest the maturity amount in the same or another scheme.
see also: Earn Returns of Up to Rs 5 Lakh with Just Rs 1,000 Investment
Who Should Invest in POMIS?
- Retirees looking for a steady monthly income.
- Conservative investors who prefer guaranteed returns.
- Parents or guardians wanting to invest securely for a child’s future.
- Anyone who wants risk-free passive income.
Benefits of Investing in POMIS
1. Fixed Monthly Income
Unlike market-linked investments, POMIS provides a steady monthly payout, helping you meet monthly expenses without touching your principal.
2. Capital Protection
Since it’s a government-backed scheme, your money is 100% safe, making it a preferred choice over risky market-based investments.
3. No TDS (Tax Deducted at Source)
There is no TDS deduction on POMIS interest payouts, though the interest is taxable as per your income slab.
4. Flexible Withdrawal Options
While the scheme has a 5-year lock-in, premature withdrawals are allowed with minimal penalties:
- Before 3 years – 2% penalty on deposit amount.
- Between 3-5 years – 1% penalty on deposit amount.
5. Easy to Open and Operate
Opening a POMIS account is simple and can be done at any Post Office branch with minimal paperwork.
How to Open a POMIS Account
Step-by-Step Process
- Visit Your Nearest Post Office – Locate your nearest branch.
- Fill Out the POMIS Application Form – Available at any Post Office.
- Submit the Required Documents:
- Aadhaar Card / PAN Card (ID Proof)
- Address Proof (Utility bill, Aadhaar, Passport, etc.)
- Passport-size photos
- Make the Initial Deposit – Through cash or cheque.
- Start Receiving Monthly Interest – Automatically credited to your linked Post Office savings account.
How Much Can You Earn?
| Investment Amount | Monthly Interest (7.4%) | Yearly Interest |
|---|---|---|
| ₹1,00,000 | ₹616 | ₹7,400 |
| ₹5,00,000 | ₹3,083 | ₹37,000 |
| ₹9,00,000 | ₹5,550 | ₹66,600 |
| ₹15,00,000 (Joint) | ₹9,250 | ₹1,11,000 |
Alternatives to POMIS
If you’re looking for similar risk-free investments, consider:
- Senior Citizens Savings Scheme (SCSS) – Offers higher interest (8.2%), but only for 60+ aged individuals.
- Public Provident Fund (PPF) – A long-term tax-free savings option with higher returns (7.1%).
- Fixed Deposits (FDs) – Offered by banks with similar or slightly higher interest rates.
see also: How to Register for Bank of Baroda Net Banking from Home: A Step-by-Step Guide
Post Office Scheme FAQs
1. Is POMIS better than Fixed Deposits?
Both offer fixed returns, but POMIS provides monthly payouts, making it ideal for retirees and those needing regular income.
2. Can I reinvest after maturity?
Yes, you can reinvest in the same scheme or transfer your funds to other post office savings plans.
3. Is the interest rate on POMIS fixed?
The interest rate is subject to change every quarter, but it remains one of the most stable investment options.
4. What happens if I withdraw my investment early?
You can withdraw after one year with penalties (1-2%), but it’s best to stay invested for 5 years to maximize returns.
5. Is POMIS taxable?
Yes, interest earned is taxable under your income tax slab, though no TDS is deducted.
