If you’re looking for a safe, government-backed investment with high returns, India Post offers several Post Office schemes tailored for every type of saver. One standout option many investors are considering in 2025 is the Post Office Monthly Income Scheme (POMIS) — and it’s being called a tremendous interest opportunity for good reason.
Post Office Scheme
| Topic | Details |
|---|---|
| Scheme Name | Post Office Monthly Income Scheme (POMIS) |
| Interest Rate (Jan–Mar 2025) | 7.4% per annum (paid monthly) |
| Investment Example | ₹2,00,000 investment gives ₹1,233 monthly income (₹74,000 in 5 years) |
| Tenure | 5 years |
| Maximum Investment Limit | ₹9 lakh (individual) / ₹15 lakh (joint account) |
| Tax Benefits | No tax deductions under Section 80C; interest is taxable |
| Official Website | India Post |
If you’re looking for a safe, fixed-income option that pays you monthly interest, then the Post Office Monthly Income Scheme (POMIS) is definitely worth considering in 2025. A ₹2 lakh investment gives you ₹1,233 every month — a stable, government-guaranteed return without the ups and downs of the market. While it’s not tax-free, the peace of mind and predictability make it a solid choice, especially for those seeking regular income.
What Is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a fixed-income plan offered by India Post. It’s ideal for conservative investors—like retirees or parents saving for their child’s education—who want a steady monthly income without taking on market risks.
You invest a lump sum amount (like ₹2 lakh), and the scheme pays you interest every month. Your principal amount is returned in full after 5 years.
Safe & Secure: Backed by the Government of India
Fixed Monthly Income: Predictable and stable
Easy to Open: Available at any post office across India
see also: BOB’s 400 Days FD is Best for Investing
How Much Return on ₹2 Lakh Investment in POMIS?
Let’s calculate your returns if you invest ₹2 lakh in this scheme.
POMIS Return Breakdown (2025):
- Interest Rate: 7.4% per annum
- Monthly Interest: ₹2,00,000 × 7.4% ÷ 12 = ₹1,233/month
- Total Interest Over 5 Years: ₹1,233 × 60 months = ₹73,980
- Principal Returned on Maturity: ₹2,00,000
Total Return = ₹2,00,000 (Principal) + ₹73,980 (Interest) = ₹2,73,980
That’s a guaranteed ₹73,980 return over five years — taxable as per your income slab, but risk-free and stable.
Why Choose POMIS Over Other Investment Options?
Here’s a simple comparison of other high-interest Post Office savings schemes vs POMIS:
1. National Savings Certificate (NSC)
- Interest: 7.7% p.a. (compounded annually)
- Tenure: 5 years
- Return on ₹2 lakh: Approx. ₹2.90 lakh
- Interest is taxable, but eligible for 80C deduction.
2. Kisan Vikas Patra (KVP)
- Interest: 7.5% p.a.
- Maturity: Doubles in 115 months (9 years, 7 months)
- ₹2 lakh becomes ₹4 lakh at maturity
- No tax benefit
3. Public Provident Fund (PPF)
- Interest: 7.1% p.a. (compounded yearly)
- Tenure: 15 years
- Tax-free returns
- ₹2 lakh could grow to approx. ₹5.65 lakh in 15 years
- Best for long-term wealth creation
POMIS Wins If You Want:
- Shorter-term investment
- Monthly income
- Guaranteed returns
- Government safety
How to Open a POMIS Account: Step-by-Step Guide
You can open a POMIS account at any India Post office. Here’s how:
Eligibility
- Indian resident individuals only
- Minors (above 10 years) can open in their name
- Joint accounts allowed (up to 3 adults)
Documents Needed
- Aadhaar card (mandatory)
- PAN card (mandatory for investments above ₹50,000)
- Passport-sized photograph
- Address proof (utility bill, ration card, etc.)
- Filled POMIS account form (available at post office)
Steps
- Visit your nearest post office branch
- Request the POMIS account opening form
- Submit filled form with documents and deposit amount (cash/cheque)
- Choose single or joint account
- Get your passbook with account details and monthly interest info
You can link the account to a Post Office Savings Account to get monthly interest auto-credited.
Who Should Invest in POMIS?
Perfect For:
- Senior citizens seeking regular income
- Parents planning fixed returns for child’s future
- Conservative investors avoiding market risks
- Retirees or homemakers needing monthly support
Not Ideal If:
- You want tax savings (POMIS doesn’t offer Section 80C benefits)
- You seek higher returns through mutual funds or stocks
- You need the money before 5 years (premature withdrawal has penalties)
see also: Fixed Deposit: PNB Bank Is Giving Great Returns on 2000 Days FD
Post Office Scheme FAQs
Q1. Is the interest earned on POMIS taxable?
Yes, interest is fully taxable as per your income slab. However, no TDS is deducted by the Post Office.
Q2. Can I withdraw money before 5 years?
Yes, but with conditions:
- After 1 year but before 3 years: 2% penalty on principal
- After 3 years but before 5 years: 1% penalty
Q3. What is the maximum limit for POMIS?
- ₹9 lakh for individuals
- ₹15 lakh for joint accounts
Q4. Can NRIs invest in POMIS?
No, Non-Resident Indians (NRIs) are not allowed to invest in POMIS.
Q5. What happens after 5 years?
Your principal is returned. You can re-invest or move to another Post Office scheme.
