Investors looking for a safe and reliable source of monthly income often turn to government-backed schemes. One such trusted option is the Post Office Monthly Income Scheme (POMIS). This investment plan offers a fixed monthly return while ensuring the protection of your capital.
If you’re wondering, “How much monthly income can I earn with a lump sum investment of ₹15 lakh in POMIS?”, you’re in the right place. This article breaks down everything you need to know about POMIS, including interest rates, eligibility, benefits, and how to open an account.
Post Office Monthly Income Scheme (POMIS)
| Feature | Details |
|---|---|
| Investment Limit | ₹9 lakh (Single Account), ₹15 lakh (Joint Account) |
| Interest Rate (as of 2025) | 7.4% per annum (fixed) |
| Monthly Income on ₹15 lakh | ₹9,250 per month |
| Tenure | 5 years |
| Premature Withdrawal | Allowed with penalty |
| Taxability | Interest is taxable, but no TDS |
| Official Website | India Post |
The Post Office Monthly Income Scheme (POMIS) is an excellent investment for those seeking a secure, government-backed source of fixed monthly income. With an attractive interest rate of 7.4% and a guaranteed return of ₹9,250 per month on ₹15 lakh, POMIS remains a preferred choice for retirees, conservative investors, and risk-averse individuals.
What is the Post Office Monthly Income Scheme (POMIS)?
POMIS is a low-risk investment scheme offered by the Indian Post Office. It allows individuals to invest a lump sum amount and earn fixed monthly interest payouts. Since it is backed by the Government of India, it provides assured returns and capital safety, making it a preferred choice among risk-averse investors like retirees, pensioners, and those seeking stable returns.
see also: IDBI Bank’s 375-Day FD Scheme
How Much Monthly Income Can You Earn?
The current interest rate for POMIS is 7.4% per annum. The monthly payout is calculated as follows:
MonthlyInterest=(InvestmentAmount×InterestRate)÷12Monthly Interest = (Investment Amount × Interest Rate) ÷ 12
For a ₹15 lakh investment:
₹15,00,000×7.4₹15,00,000 × 7.4% ÷ 12 = ₹9,250 per month
This means that with a one-time deposit of ₹15 lakh, you can earn ₹9,250 every month for five years.
Benefits of Investing in POMIS
1. Guaranteed Returns
Since POMIS is backed by India Post, it provides fixed monthly returns regardless of market fluctuations.
2. Safe Investment
Unlike stock markets, mutual funds, or other high-risk investments, POMIS ensures zero capital loss.
3. Suitable for Conservative Investors
POMIS is ideal for those who seek steady income without taking risks, such as senior citizens, homemakers, and salaried professionals.
4. No Market Volatility
The scheme’s interest rate is fixed for the tenure, making it a stable and predictable investment option.
Senior Citizen Savings Scheme: वरिष्ठ नागरिकों के फायदे की स्कीम, पोस्ट ऑफिस से करें आवेदन
Eligibility Criteria for POMIS
- Must be an Indian citizen.
- Minimum age: 10 years (Minors can invest with a guardian).
- No NRI investments allowed.
How to Open a POMIS Account?
Step 1: Visit the Nearest Post Office
Locate your nearest India Post Office and obtain the POMIS application form.
Step 2: Submit the Required Documents
Provide the following:
- KYC Documents (Aadhaar, PAN Card, Voter ID, etc.)
- Passport-sized Photos
- Address Proof
- Initial Deposit via Cash/Cheque
Step 3: Complete the Process
- Fill out the nominee details.
- Submit the application form with documents.
- Once approved, receive the account passbook.
Premature Withdrawal Rules
| Duration | Penalty |
|---|---|
| Before 1 year | Not allowed |
| 1 to 3 years | 2% deduction from deposit |
| 3 to 5 years | 1% deduction from deposit |
Taxation on POMIS Returns
- Interest earned is taxable under ‘Income from Other Sources’.
- No TDS is deducted, but investors must declare interest income in Income Tax Returns (ITR).
- No tax exemption benefits like PPF or SCSS.
see also: New Income Tax Rules on Savings Account Deposit
Comparison: POMIS vs Other Fixed Income Options
| Feature | POMIS | Fixed Deposit (FD) | Senior Citizen Savings Scheme (SCSS) |
|---|---|---|---|
| Interest Rate | 7.4% | 6.5%-7.5% | 8.2% |
| Tenure | 5 Years | 1-10 Years | 5 Years |
| Tax Benefits | No | No | Yes (under Sec 80C) |
| Withdrawal Flexibility | Yes (with penalty) | Yes (with penalty) | Yes (with penalty) |
Post Office Monthly Income Scheme (POMIS) FAQs
1. Can I invest more than ₹15 lakh in POMIS?
No. The maximum limit per individual is ₹9 lakh, and ₹15 lakh for joint accounts.
2. Can I transfer my POMIS account?
Yes. You can transfer your account to any post office in India.
3. Is POMIS better than Fixed Deposits?
POMIS offers fixed returns and stability, but it doesn’t provide tax benefits like some FDs. Compare interest rates before investing.
4. Can NRIs invest in POMIS?
No. Only Indian residents can invest in this scheme.
5. What happens after the 5-year tenure?
You can withdraw the full amount or reinvest in POMIS or another scheme.
