When it comes to securing a steady, risk-free monthly income, the Post Office Monthly Income Scheme (POMIS) is one of the most trusted investment options in India. And here’s the best part: if a husband and wife invest together, they can earn up to ₹8633 per month, completely safe and guaranteed by the government.
Whether you’re planning for retirement, a second source of income, or simply looking to grow your savings with minimal risk, this scheme can be a reliable financial cushion. Let’s dive into how it works, how to invest, and why it’s an ideal plan for couples.
Post Office Scheme
| Feature | Details |
|---|---|
| Scheme Name | Post Office Monthly Income Scheme (POMIS) |
| Interest Rate (Jan-Mar 2025) | 7.4% p.a. (Payable Monthly) |
| Maximum Investment Limit | ₹9 lakh (single), ₹15 lakh (joint account) |
| Monthly Income for Joint Investment of ₹15 Lakh | ₹8633 |
| Tenure | 5 years (fixed) |
| Premature Withdrawal | Allowed with penalty (1-2%) after 1 year |
| Taxation | Interest is taxable, but no TDS is deducted |
| Official Website | India Post |
The Post Office Monthly Income Scheme is a fantastic, stress-free option for couples who want steady monthly income without worrying about market volatility. By jointly investing ₹15 lakh, a husband and wife can enjoy ₹8633 every month, making it ideal for retirees, homemakers, and risk-averse investors.
It’s simple, safe, and supported by the government – perfect for those who prefer peace of mind with their finances
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme is a small savings scheme offered by India Post and backed by the Government of India. It is designed to provide monthly income in the form of fixed interest payouts. The scheme is especially popular among retirees, conservative investors, and families seeking stable income without taking market risks.
Who Can Open an Account?
- Any Indian resident above 10 years of age can open an account.
- You can open individual or joint accounts (up to 3 adults).
- Parents or guardians can open an account on behalf of minors.
How Much Will You Earn?
Here’s the detailed earning potential based on the latest 7.4% interest rate (for Jan-Mar 2025):
Example for Joint Account Investment:
- Amount Invested: ₹15,00,000 (maximum limit for joint account)
- Annual Interest: ₹15,00,000 x 7.4% = ₹111,000
- Monthly Income: ₹111,000 / 12 = ₹8633
So, a couple investing the maximum allowed amount jointly will receive ₹8633 every month for 5 years.
Note: The monthly income is fixed and credited directly to your linked post office savings account.
see also: Post Office Fixed Deposit Interest Rate 2025
How to Open a POMIS Account: Step-by-Step Guide
Step 1: Visit Your Nearest Post Office
Go to any India Post branch that offers banking services. Carry your Aadhaar Card, PAN Card, passport-size photos, and address proof.
Step 2: Fill the Application Form
Ask for the POMIS account opening form. Choose either a single or joint account.
Step 3: Make the Investment
You can invest via cheque or cash. Minimum investment is ₹1,000. Maximum limits:
- ₹9 lakh for a single account
- ₹15 lakh for a joint account
Step 4: Link Savings Account
Link a Post Office Savings Account for automatic credit of your monthly interest.
Step 5: Receive Monthly Interest
From the following month, you’ll start receiving monthly interest credited to your account.
Why Couples Should Consider Joint Investment in POMIS
- Higher Investment Limit: Joint account allows investment up to ₹15 lakh.
- Stable Monthly Income: Receive ₹8633/month jointly.
- Government-Backed Safety: 100% capital protection.
- No Market Risk: Unlike mutual funds or stocks, your returns are fixed.
- Easy Liquidity: Premature withdrawal allowed after 1 year.
Things to Keep in Mind
Interest Taxability
Although there’s no TDS, the interest is taxable as per your income tax slab. Plan accordingly.
Premature Closure Rules
- 1 to 3 years: 2% penalty on principal
- 3 to 5 years: 1% penalty on principal
- After 5 years: Full withdrawal without penalty
Transferability
You can transfer the account from one post office to another if needed.
Nomination Facility
You can add a nominee at the time of opening or later, for smoother claim process.
see also: Deposit ₹ 2 Lakh in Bank of Baroda’s Scheme and Get Fixed Interest of ₹ 17,902
Comparison with Other Monthly Income Options
| Scheme | Interest Rate | Risk | Tax Benefit | Liquidity |
|---|---|---|---|---|
| POMIS | 7.4% | Low | No 80C benefit | Moderate (after 1 year) |
| Senior Citizen Savings Scheme (SCSS) | 8.2% | Low | 80C applicable | Penalty on early withdrawal |
| Bank FD (5 yrs) | ~6.5% | Low | 80C available | Lock-in period |
| Mutual Funds (MIPs) | 7%-9% (varies) | Moderate | Depends | High |
Post Office Scheme FAQs
1. Can a husband and wife both open separate POMIS accounts?
Yes, each individual can open a separate account with a limit of ₹9 lakh. But for joint accounts, the combined limit is ₹15 lakh.
2. Is the monthly income guaranteed?
Yes, the interest payout is fixed and guaranteed by the Government of India.
3. Can I withdraw money before 5 years?
Yes, but only after 1 year. A penalty of 1-2% is applied depending on the tenure.
4. Is POMIS available online?
Currently, you need to visit the post office physically to open the account. Online access is limited.
5. What happens after maturity?
You can withdraw the principal amount or reinvest in a fresh POMIS account.
