Investing smartly is the key to financial security and wealth creation. One of the most trusted and government-backed options available today is the Post Office Monthly Savings Scheme (POMIS). This scheme allows individuals to earn significant returns with minimal risk, making it an attractive option for investors who prefer stability over volatility.
With small monthly contributions, you can earn a profit of up to Rs 80,000 over time. This article provides a comprehensive breakdown of the scheme, how it works, and how you can maximize your earnings.
Post Office’s Bumper Scheme
| Feature | Details |
|---|---|
| Scheme Name | Post Office Monthly Income Scheme (POMIS) |
| Minimum Investment | Rs 1,500 per month |
| Maximum Investment | Rs 9 lakh (for joint accounts) |
| Interest Rate | 7.4% per annum (as of 2025) |
| Investment Tenure | 5 years |
| Maturity Amount | Can earn up to Rs 80,000 in interest over 5 years |
| Tax Benefits | No TDS, but interest is taxable |
| Official Website | India Post |
The Post Office Monthly Income Scheme (POMIS) is a safe, profitable, and hassle-free investment for those seeking stable returns with minimal risk. By investing strategically, you can earn up to Rs 80,000 in profits over 5 years, making it an excellent choice for retirees, conservative investors, and individuals looking for a fixed monthly income.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a fixed-income investment plan offered by the Indian Postal Service, providing a guaranteed monthly return on investment.
It is ideal for retirees, conservative investors, and individuals looking for a steady income stream. Unlike stock market investments, which are subject to volatility, POMIS offers fixed returns at an attractive interest rate, currently set at 7.4% per annum.
see also: How Much Return Will You Get After 1 Year on FD of Rs 1 Lakh?
How Does the Post Office Monthly Scheme Work?
POMIS works on a simple concept: You invest a lump sum amount, and the Post Office pays you interest every month. Here’s how it functions:
- Open a POMIS account at any post office.
- Deposit a lump sum amount (Minimum: Rs 1,500, Maximum: Rs 9 lakh for joint accounts).
- Earn a fixed monthly interest (Paid on a fixed date every month).
- Get the principal back after 5 years.
- Reinvest or withdraw the funds as per your financial goal.
This scheme is suitable for risk-averse investors looking for predictable returns without market risks.
How to Earn Rs 80,000 Profit with POMIS?
Scenario 1: Investing Rs 4.5 Lakh
- Investment: Rs 4,50,000
- Interest Rate: 7.4% per annum
- Monthly Payout: Rs 2,775
- Total Earnings in 5 Years: Rs 1,66,500
Scenario 2: Investing Rs 9 Lakh (Joint Account)
- Investment: Rs 9,00,000
- Interest Rate: 7.4% per annum
- Monthly Payout: Rs 5,550
- Total Earnings in 5 Years: Rs 3,33,000
If you reinvest the monthly payouts smartly, you can accumulate even higher returns, crossing the Rs 80,000 profit mark.
How to Open a Post Office Monthly Income Scheme Account?
Opening a POMIS account is simple and requires minimal documentation.
Step-by-Step Guide:
- Visit your nearest post office with required documents.
- Fill out the POMIS application form.
- Submit KYC documents (Aadhaar, PAN, Address Proof, and Passport-sized photos).
- Deposit the investment amount through cash, cheque, or demand draft.
- Receive a passbook confirming your account details and investment amount.
The entire process can be completed within a day.
Additional Investment Strategies to Maximize Returns
- Reinvest Your Monthly Payouts: Consider reinvesting the monthly interest into Recurring Deposits (RDs) or Public Provident Fund (PPF) for compounded growth.
- Diversify Investments: Pair POMIS with Senior Citizen Savings Scheme (SCSS) or Fixed Deposits (FDs) for balanced returns.
- Opt for Joint Accounts: If you have a family member, opening a joint account allows you to invest up to Rs 9 lakh.
- Plan for Taxation: While POMIS does not have TDS, the interest is taxable. Use tax-saving options like Section 80C investments to minimize your taxable income.
Benefits of Investing in POMIS
- Guaranteed Returns – Unlike mutual funds or stocks, POMIS offers fixed returns with no risk.
- Steady Monthly Income – Ideal for retirees, homemakers, and individuals seeking passive income.
- Easy to Open & Operate – Can be managed through any post office in India.
- Reinvestment Opportunities – Monthly payouts can be reinvested in RD, PPF, or fixed deposits for compound growth.
- No TDS Deduction – However, interest earned is taxable under “Income from Other Sources.”
see also: Post Office Guaranteed Income Scheme
Post Office’s Bumper Scheme FAQs
1. Is the Post Office Monthly Scheme safe?
Yes, POMIS is a government-backed savings scheme, making it one of the safest investment options in India.
2. Can NRIs invest in POMIS?
No, only Indian residents can invest in this scheme.
3. What happens after maturity?
After 5 years, you can either withdraw the principal amount or reinvest it in POMIS or another scheme.
4. Can I withdraw money before 5 years?
Yes, premature withdrawals are allowed with certain penalties:
- After 1 year but before 3 years – 2% deduction on the deposit amount.
- After 3 years – 1% deduction.
5. Is the interest rate fixed for 5 years?
Yes, the interest rate remains fixed throughout the 5-year tenure.
