Looking for a safe and guaranteed way to earn monthly income without having to work every day for it? The Post Office Monthly Income Scheme (POMIS) might be just what you need. By investing just once, you can enjoy a steady payout of ₹9,250 every month, all backed by the trust of India Post and the Government of India.
This article breaks down exactly how the scheme works, who it’s for, how much to invest, and how you can benefit from reliable, risk-free income every month. Whether you’re a retiree, a homemaker, or a salaried professional looking to build passive income, this scheme could be your next smart move.
Post Office MIS Scheme
| Feature | Details |
|---|---|
| Scheme Name | Post Office Monthly Income Scheme (POMIS) |
| Interest Rate | 7.4% per annum (as of April–June 2025 quarter) |
| Monthly Payout on ₹15 Lakh | ₹9,250 |
| Maximum Investment (Joint A/C) | ₹15,00,000 |
| Maximum Investment (Single A/C) | ₹9,00,000 |
| Minimum Investment | ₹1,000 |
| Lock-in Period | 5 years |
| Tax Benefits | Interest is taxable, but no TDS is deducted |
| Official Website | India Post – POMIS |
The Post Office Monthly Income Scheme is an ideal choice for anyone who wants regular income without taking risks. Whether you’re planning for your retirement, a child’s future, or just want to diversify your portfolio with a government-backed option, POMIS offers simplicity, safety, and steady returns.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme that provides fixed monthly income in the form of interest. This scheme is perfect for conservative investors who prioritize capital protection and predictable returns.
When you invest a lump sum amount, India Post pays you a fixed monthly income at the declared interest rate for five years. At the end of the tenure, you get your entire principal amount back.
see also: Deposit Rs 60,000 in a 5-Year FD of the Post Office Today
How Does the ₹9,250 Monthly Income Work?
Let’s understand the math behind the ₹9,250 monthly income.
If you invest ₹15,00,000 (the maximum allowed for a joint account), the interest you earn annually at the current 7.4% rate is:
₹15,00,000 × 7.4% = ₹1,11,000/year
₹1,11,000 ÷ 12 months = ₹9,250/month
This monthly payout is credited directly to your linked savings account. You don’t need to do anything after the initial investment—just sit back and receive your money.
Who Can Open a POMIS Account?
You can open a POMIS account as:
- An individual adult (Single account – max ₹9 lakh)
- Jointly with up to 3 adults (Joint account – max ₹15 lakh)
- On behalf of a minor (above 10 years) by a guardian
This makes it a great choice for senior citizens, homemakers, and guardians of minors looking for fixed monthly support.
How to Open a Post Office MIS Account
Opening an account is very simple. Here’s how:
Step-by-Step Guide:
Step 1: Visit Your Nearest Post Office
Go to the post office where you want to open the account.
Step 2: Submit the Documents
You’ll need:
- Aadhaar Card
- PAN Card
- Passport-size photographs
- Address proof
- Nominee details (optional, but recommended)
Step 3: Deposit the Money
Minimum: ₹1,000
Maximum: ₹9 lakh (single), ₹15 lakh (joint)
You can deposit through:
- Cash
- Cheque
- Demand Draft (from a Post Office Savings Account)
Step 4: Receive Account Details
Once processed, you’ll receive an account passbook and monthly income will start from the end of the first month.
Benefits of POMIS
Guaranteed Monthly Income
You get assured interest payout every month—great for managing monthly expenses like rent, groceries, or medicines.
Capital Protection
Being a Government of India scheme, your principal is 100% safe.
No Market Risk
Unlike mutual funds or stock market, your returns are not affected by volatility.
No TDS Deducted
Though interest is taxable, no TDS (Tax Deducted at Source) is cut—giving you full control over tax planning.
Important Rules to Know
Lock-in Period
The money is locked in for 5 years. Premature withdrawal is allowed with penalties:
- After 1 year but before 3 years: 2% deduction
- After 3 years: 1% deduction
Taxability
- Interest earned is taxable under your income slab
- No Section 80C benefit
- No TDS is deducted
Real-Life Examples
Let’s see how different people can benefit:
| Investor Type | Investment | Monthly Income | Use Case |
|---|---|---|---|
| Senior Citizen | ₹15 lakh | ₹9,250 | Medical expenses, bills |
| Homemaker (Joint) | ₹10 lakh | ₹6,167 | Household support |
| Minor (via guardian) | ₹5 lakh | ₹3,083 | Education savings, pocket money |
What Happens After 5 Years?
At the end of 5 years:
- Your principal is returned
- You can reinvest the amount in:
- A new POMIS account
- Other schemes like Senior Citizen Savings Scheme, Post Office Time Deposit, or PPF
see also: FD Laddering: Every Year One of Your FD Schemes Can Mature
Alternatives to POMIS
| Scheme | Interest Rate | Tenure | Monthly Payout |
|---|---|---|---|
| Senior Citizens Savings Scheme | 8.2% | 5 years | Quarterly |
| Post Office Time Deposit (5-Year) | 7.5% | 5 years | No monthly payout |
| RBI Floating Rate Bonds | 8.05% | 7 years | Semi-annual payout |
| POMIS | 7.4% | 5 years | Monthly |
Post Office MIS Scheme FAQs
Q1: Is the Post Office MIS safe?
Yes. It’s backed by the Government of India and operated by India Post—making it one of the safest investment schemes.
Q2: Can I open more than one account?
Yes, but the total investment must not exceed ₹9 lakh (single) or ₹15 lakh (joint) across all accounts.
Q3: Is the interest rate fixed?
Yes, the rate is fixed at the time of investment. It won’t change for your 5-year tenure.
Q4: What if I need money urgently?
You can withdraw early, but only after 1 year, and with a small penalty.
Q5: Can NRIs invest in POMIS?
No, NRIs are not eligible to open or maintain a POMIS account.
