Planning for retirement can feel overwhelming, but the Post Office Monthly Income Scheme (POMIS) provides a safe and reliable way to earn a fixed monthly income. With guaranteed returns and government backing, this scheme is a popular choice for retirees and risk-averse investors looking for financial stability.
Post Office Monthly Income Scheme (POMIS)
| Feature | Details |
|---|---|
| Interest Rate | 7.4% per annum (as of Q1 2024) |
| Payout | Monthly interest credited directly to your account |
| Maximum Investment | ₹9 lakh (single account), ₹15 lakh (joint account) |
| Minimum Investment | ₹1,000 |
| Tenure | 5 years, extendable |
| Tax Benefits | No tax deduction under Section 80C; interest is taxable |
| Premature Withdrawal | Allowed with penalties after 1 year |
| Official Website | India Post |
If you’re looking for a safe, stable investment option, POMIS is an excellent choice. While it may not offer high returns like stocks, it guarantees fixed monthly income, making it ideal for retirees and risk-averse investors. For those seeking higher returns, you may also consider Senior Citizen Savings Scheme (SCSS) or RBI Floating Rate Bonds
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings plan designed to provide a steady monthly income to investors. With guaranteed returns and zero market risks, it’s an ideal option for retired individuals, senior citizens, and those seeking stable earnings.
How POMIS Works
- You deposit a lump sum amount in the scheme.
- The Post Office pays interest every month based on the invested amount.
- At the end of 5 years, you get back your principal amount.
This scheme ensures financial security without the risk of losing money due to market fluctuations.
see also: Post Office FD Scheme 2025 Earn Up to 7.5% Interest
How to Earn ₹10,000 Monthly from POMIS?
To generate ₹10,000 per month in interest, let’s do the math based on the current 7.4% interest rate.
- Annual Interest Calculation: ₹16,22,000 x 7.4% = ₹1,20,028 per year
- Monthly Interest Payout: ₹1,20,028 ÷ 12 = ₹10,002
However, the maximum limit for a single account is ₹9 lakh, which means you can earn:
- ₹9 lakh x 7.4% = ₹66,600 annually (₹5,550/month)
To earn ₹10,000 per month, you must invest jointly with a family member or explore other Post Office schemes.
Eligibility & Documentation Required
To open a POMIS account, you need:
Eligibility Criteria
Indian citizenship (NRIs not eligible)
18 years and above (Minors can invest with a guardian)
Single or joint accounts (Max: 3 holders)
Required Documents
- KYC Documents: Aadhaar, PAN Card
- Address Proof: Utility bill, Voter ID
- Passport-sized photographs
- Initial deposit via cash or cheque
How to Open a POMIS Account?
Step 1: Visit the Post Office
Head to your nearest India Post Office branch.
Step 2: Fill the Application Form
Obtain and complete the POMIS application form.
Step 3: Submit Documents
Attach your KYC documents, passport-sized photos, and an initial deposit cheque/cash.
Step 4: Collect Passbook
After verification, you’ll receive a passbook containing investment details.
Benefits of POMIS
Guaranteed Monthly Income: Fixed interest payout ensures financial stability.
Zero Market Risk: Safe investment with government assurance.
Affordable Minimum Investment: Start with as little as ₹1,000.
Joint Investment for Higher Returns: Increase earnings by investing with a spouse or family member.
Premature Withdrawal Facility: Option to withdraw after 1 year (penalties apply).
see also: Big Gift to Women Low-Interest Loans
Comparison: POMIS vs Senior Citizens Savings Scheme (SCSS)
| Feature | POMIS | SCSS |
|---|---|---|
| Interest Rate | 7.4% | 8.2% |
| Investment Limit | ₹9 lakh (single), ₹15 lakh (joint) | ₹30 lakh |
| Tenure | 5 years | 5 years (extendable) |
| Tax Benefits | No 80C benefits | Deduction under Section 80C |
| Payout | Monthly | Quarterly |
For retired individuals, SCSS offers a higher interest rate and better tax benefits under Section 80C.
Post Office Monthly Income Scheme FAQs
1. Is POMIS a tax-free scheme?
No, the interest earned is taxable. However, there is no TDS deduction.
2. Can I withdraw my money before 5 years?
Yes, but with penalties:
- 1-3 years: 2% penalty on principal
- After 3 years: 1% penalty
3. Can I reinvest the matured amount?
Yes! You can reinvest in POMIS or other Post Office schemes.
4. Can NRIs invest in POMIS?
No, only Indian residents are eligible.
5. Is there a nomination facility?
Yes, you can nominate a family member to receive benefits.
