If you’re looking for a safe investment scheme that gives fixed monthly income, the Post Office Monthly Income Scheme (POMIS) might be the perfect option. With a one-time investment, you can enjoy guaranteed monthly returns — like earning ₹5,550 every month on ₹9 lakh investment. This scheme is backed by the Government of India, which means your money stays safe while growing steadily.
Post Office Monthly Income Scheme (POMIS)
| Feature | Details |
|---|---|
| Scheme Name | Post Office Monthly Income Scheme (POMIS) |
| Monthly Income Example | ₹5,550 per month on ₹9 lakh investment |
| Interest Rate (as of April 2025) | 7.4% per annum |
| Tenure | 5 years |
| Minimum Investment | ₹1,000 |
| Maximum Limit | ₹9 lakh (Single), ₹15 lakh (Joint Account) |
| Premature Withdrawal | After 1 year with penalty |
| Tax Benefits | Interest taxable; No TDS |
| Official Website | India Post |
The Post Office Monthly Income Scheme is a golden opportunity for conservative investors who want guaranteed returns with zero risk. Earning a fixed ₹5,550 every month just by investing ₹9 lakh is not only predictable but also stress-free. It’s an excellent tool for income planning, especially for retirees, housewives, and low-risk investors.
What is Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a small savings scheme designed for individuals who want steady monthly income without worrying about market volatility. Offered by India Post under the Ministry of Communications, it’s one of the safest investment instruments backed by sovereign guarantee.
Key Features of POMIS:
- Fixed monthly income for 5 years
- Interest rate of 7.4% per annum (as of Q1 FY2025-26)
- Safe, government-backed scheme
- No market risks, unlike mutual funds or stocks
see also: Bank of India Revises Fixed Deposit Interest Rates
How to Earn ₹5,550 Every Month From POMIS
If your goal is to receive ₹5,550 monthly as interest, here’s how the numbers work:
Calculation:
- Investment: ₹9,00,000 (maximum limit for a single account)
- Annual Interest: ₹9,00,000 × 7.4% = ₹66,600
- Monthly Income: ₹66,600 ÷ 12 = ₹5,550
So, by investing ₹9 lakh, you’ll earn ₹5,550 every month for 5 years — credited directly to your linked savings account.
Eligibility Criteria
Anyone can open a POMIS account if they meet the following criteria:
Who Can Invest:
- Indian residents aged 10 years or above
- Guardians can open accounts on behalf of minors
- Joint accounts allowed (up to 3 adults)
Note: NRIs are not eligible to invest in POMIS.
Investment Limits
Understanding how much you can invest is crucial:
| Account Type | Maximum Investment |
|---|---|
| Single Account | ₹9,00,000 |
| Joint Account (up to 3 adults) | ₹15,00,000 |
| Minor Account | ₹3,00,000 |
How to Open a POMIS Account – Step-by-Step Guide
Step 1: Visit the Nearest Post Office
Go to your local post office that offers savings services.
Step 2: Fill Out the Application Form
Get Form-A for opening a POMIS account. Fill in all necessary details.
Step 3: Submit KYC Documents
Attach:
- Aadhar card (mandatory)
- PAN card (mandatory for investments above ₹50,000)
- Passport-sized photograph
- Address proof (utility bill/bank statement)
Step 4: Deposit the Amount
You can deposit via cheque, cash, or transfer from your post office savings account.
Step 5: Collect Your Passbook
Once the account is opened, you’ll receive a passbook with all investment details.
Benefits of Post Office Monthly Income Scheme
Fixed Monthly Returns
Your income is guaranteed, regardless of market conditions.
Government Backing
As a sovereign-backed scheme, it’s one of the safest options in India.
Joint Holding Option
You can open a joint account to increase your investment limit to ₹15 lakh.
Transferable Across India
You can transfer your account to any post office across India if you relocate.
Nomination Facility
You can nominate someone to receive the money in your absence.
Drawbacks and Considerations
While POMIS is excellent for steady income, you should also be aware of its limitations:
- No Tax Benefits: Interest is fully taxable.
- No TDS: But you still need to declare interest in your ITR.
- Returns are Lower than high-risk instruments like equities or mutual funds.
- Locked-in for 5 Years: Early withdrawal only after 1 year, and with penalties:
- 1–3 years: 2% deduction
- 3–5 years: 1% deduction
Who Should Invest in POMIS?
Ideal for:
- Retired individuals looking for safe, monthly income
- Parents investing for children
- Professionals diversifying portfolio with low-risk instruments
- First-time investors who want a simple and safe investment
Tips to Maximize Returns
- Open joint accounts to raise the investment cap to ₹15 lakh.
- Combine POMIS with Recurring Deposit (RD) after maturity to reinvest funds.
- Time your withdrawals and plan taxes in advance to reduce liability.
see also: Invest ₹5000 Every Month in Post Office RD Scheme, Here’s How Much You’ll Get After 10 Years
Post Office Monthly Income Scheme (POMIS) FAQs
Q. What is the interest rate for POMIS in April 2025?
As per the Ministry of Finance, the interest rate is 7.4% per annum, payable monthly.
Q. Is POMIS better than Fixed Deposit?
POMIS offers monthly interest payouts, unlike most FDs that pay on maturity. It’s more suitable if you want regular income rather than lump sum returns.
Q. Is the interest from POMIS taxable?
Yes, the interest earned is fully taxable as per your income tax slab. However, no TDS is deducted by the post office.
Q. Can I break the POMIS account before 5 years?
Yes, but only after 1 year. You’ll incur:
- 2% penalty if closed between 1–3 years
- 1% penalty if closed between 3–5 years
Q. How do I receive the monthly income?
The monthly interest is credited directly to your post office savings account.
Q. Can I open multiple POMIS accounts?
Yes, but the combined deposit must not exceed ₹9 lakh (single) or ₹15 lakh (joint).
