Post Office Monthly Income Scheme (POMIS) 2024

Post Office Monthly Income Scheme (POMIS) offers a reliable, government-backed savings plan, perfect for individuals looking for a secure, regular monthly income with attractive interest rates of 7.40% p.a. (as of 01/01/2024).

4 mins

7-December-2024

Post Office Monthly Income Scheme (POMIS) is a secure government-backed savings plan ideal for those seeking a steady income. Currently, with an interest of 7.40% p.a. (as of 01/01/2024), POMIS is a low-risk investment. This guide covers its features, eligibility criteria, and the simple account opening process. It provides valuable insights for individuals considering this reliable financial option.

What is Post Office Monthly Income Scheme (POMIS)?

The Post Office Monthly Income Scheme (POMIS) is a savings option offered by the Post Office with an interest rate of 7.4%. It provides monthly interest payouts, offering a steady income stream. POMIS is part of a range of Post Office savings options, including the Post Office Savings Account (POSA), Post Office Recurring Deposit (RD), and Post Office Time Deposit (TD). Like all Post Office schemes, POMIS is backed by the Ministry of Finance, ensuring a secure investment option.

Features of POMIS

Capital protection
Backed by the government, ensuring the safety of your investment until maturity.
Low-risk investment
You earn a fixed rate of interest as it does not depend on the market forces, making it a secure option for investors.
Payout timing
Receive payouts after one month from the initial investment, not at the beginning of every month.
Nomination facility
Nominate a family member as a beneficiary for ease of claims in case of the investor's demise.
Transaction ease
Collect monthly interest directly from the post office or you can opt for automatic transfer to your savings account.
Reinvestment option
Post maturity, you can also reinvest the corpus for another five years.

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Post Office Monthly Income Scheme details

The following table outlines the maximum investment limits applicable to the Post Office Monthly Income Scheme (POMIS):

Account type	Maximum investment
Single Account	Rs. 9 Lakhs
Joint Account	Rs. 15 Lakhs

If you want to earn monthly interest on your investment, you can also consider Fixed Deposit as an option. Financial institution like Bajaj Finance, offers interest rate of up to 7.30% p.a. on FDs, and flexible payout options like monthly, quarterly, half yearly, annually. You can choose any of payout option according to financial needs, and easily invest online through the Bajaj Finserv app or website.

Benefits of Post Office Monthly Income Scheme (MIS)

The post office monthly income scheme offers several benefits:

1. Guaranteed Monthly Income

POMIS provides a fixed and guaranteed monthly income to investors. This regular payout serves as a stable source of cash flow, making it an attractive option for individuals looking to supplement their monthly income or retirees seeking financial stability.

2. Low Risk

POMIS is a low-risk investment option as it is backed by the Government of India. The principal amount invested and the interest earned are considered safe, providing investors with a sense of security.

3. Accessibility and convenience

POMIS is easily accessible through post offices across India, making it a convenient option for a wide range of investors. The simplicity of the process and the widespread availability of post offices contribute to its popularity.

4. No Market-linked risks

Unlike some other investment options, POMIS does not expose investors to market-linked risks. The returns are not dependent on market conditions, making it suitable for those who prefer a more predictable investment.

Additional read: Best saving scheme for senior citizens

Who should invest in POMIS?

Investing in the post office monthly income scheme is suitable for:

POMIS is a low-risk investment as this scheme is backed by government, making it suitable for conservative investors who prioritise capital preservation and are not comfortable with higher-risk options.
POMIS can be attractive for retirees and senior citizens who are looking for a steady monthly income stream to supplement their pension or other income sources.
Individuals who prioritise regular income over high returns may find POMIS appealing. It provides a fixed monthly payout, offering financial stability.

Post Office Monthly Income Scheme interest rates 2025

The Post Office Monthly Income Scheme (POMIS) offers a competitive interest rate of 7.4% per annum, compounded monthly for 2025. See the table below for historical POMIS interest rates.

Current interest rates on Post Office Monthly Income Scheme(POMIS)

The Post Office Monthly Income Scheme's interest rate is set by the Finance Ministry and the Central Government of India. The interest rates are usually revised quarterly, depending on the returns generated by government bonds of similar maturity.

From 1st January 2024, interest rates for the Post Office Monthly Income Scheme will be 7.4% per annum, paid monthly.

The following table shows the current and previous interest rates:

Time Interval	POMIS Interest Rate (Per Annum)
1st April 2024 - 30th December 2024	7.40%
1st January 2024 - 31st March 2024	7.40%
1st October 2023 - 31st December 2023	7.40%
1st April 2023 - 30th June 2023	7.40%
1st January 2023 - 31st March 2023	7.10%
1st October 2022 - 31st December 2022	7.10%
1st April 2020 - 30th September 2020	6.60%
1st January 2020 - 31st March 2020	7.60%
1st October 2019 - 31st December 2019	7.60%
1st July 2019 - 30th September 2019	7.60%
1st January 2019 - 31st March 2019	7.70%
1st October 2018 - 31st December 2018	7.70%
1st January 2018 - 30th September 2018	7.30%¹

Post Office Monthly Income Scheme for senior citizens

Here are some key points about the Post Office Monthly Income Scheme (POMIS) for senior citizens:

Interest Rate: The current interest rate for senior citizens is 6.6% per annum.
Minimum Investment: The minimum investment amount is Rs. 1,000.
Maximum Investment: The maximum investment limit is Rs. 4.5 lakhs.
Lock-in Period: The minimum lock-in period is 5 years.
Monthly Income: The interest is paid monthly. For example, if you invest Rs. 1,00,000 for 5 years at a 6.6% interest rate, you will receive a monthly income of approximately Rs. 550.

Documentation required to open Post Office Monthly Income Scheme

Submit a government-issued ID or recent utility bills as proof of your address.
Provide a copy of a government-issued ID, like Passport, Voter ID card, Driving License, Aadhaar, etc.
A passport-size photo

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How to Open a POMIS Account?

To open a POMIS account you must have a Post Office savings account. If you don’t have a Post Office saving account, visit your nearest Post Office an open an account. Then, proceed with the following steps to open a POMIS Account:

Get a POMIS account opening form from the nearby post office.
Complete the form and submit the required documents along with signature of any witness or nominee (take original documents for verification)
Initial amount can be deposited through a cheque, the cheque date considered as the account opening date.

Also read: What is Post Office Tax Saving Scheme

Eligibility criteria for opening Post Office Monthly Income Scheme account:

Indian citizenship.
A guardian is permitted to open an account on behalf of a minor or a person of unsound mind.
Minors aged 10 years and above have the eligibility to open an account in their own name.

Early withdrawal penalty POMIS

In the POMIS, if you choose to withdraw your investment before the completion of the maturity period, which is typically five years, a penalty is applied. The penalty structure is as follows:

No withdrawals allowed within the first year from the date of deposit.
If closed after 1 year but before 3 years, a deduction equal to 2% from the principal will be applied, and the remaining amount will be paid to the account holder.
If closed after 3 years but before 5 years, a deduction equal to 1% from the principal will be applied, and the remaining amount will be paid to the account holder.
The account can be prematurely closed by submitting the prescribed application form along with the passbook at the concerned post office.

POMIS premature withdrawal rules

No withdrawal is allowed within the first year from the date of deposit.
If the account is closed after 1 year but before 3 years from the date of opening, a deduction of 2% from the principal will be applied, and the remaining amount will be paid.
If the account is closed after 3 years but before 5 years from the date of opening, a deduction of 1% from the principal will be applied, and the remaining amount will be paid.
To close the account before maturity, submit the prescribed application form along with the passbook at the concerned Post Office.

Post Office Monthly Income Scheme (POMIS) Vs other Saving Schemes of the Post Office

Savings Scheme	Rate of Interest	TDS
Post Office Monthly Income Scheme	7.4%	No TDS deducted
Post Office Recurring Deposit	6.7%	No TDS deducted
Post Office Time Deposit (1, 2, 3 years)	6.9%, 7%, 7.10% respectively	No TDS deducted
Post Office Time Deposit (5 years)	7.50%	TDS deducted
National Savings Certificate	7.7%	TDS deducted
Senior Citizen Saving Scheme	8.2%	TDS deducted
Public Provident Fund	7.10%	TDS deducted

Additional read: Tax Saving Schemes for Senior Citizens

Conclusion

Post Office Monthly Income Scheme stands as a viable investment option for those seeking a regular and stable income. With straightforward procedures for opening an account at any post office in India, POMIS offers fixed returns. While it may not be suitable for everyone, POMIS serves as a reliable choice for conservative investors looking for a steady monthly income.

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Frequently asked questions

Bajaj Finance has launched a new FD type called "Bajaj Finance Digital FD" for a period of 60 months. Bajaj Finance is providing one of the highest interest rates of up to 7.30% p.a. for senior citizens and for the customers below the age of 60 theyare providing up to 6.95% p.a. The Digital FD can be booked and managed only through the Bajaj Finserv app or website.

Yes, it is possible to change a single account to a joint account in the Post Office Monthly Income Scheme.

The minimum amount required to maintain a Post Office Monthly Income Scheme account is Rs. 1,000.

The shortest time a deposit should be held before being withdrawn prematurely is one year.

POMIS is generally suitable for senior citizens and individuals seeking a regular monthly income.

In case of the investor's demise, the nominee can claim the entire amount in the POMIS account, regardless of the remaining lock-in period.

If you move to a different city, you can transfer your POMIS account to the local Post Office without incurring any additional charges.

If you invest ₹1,00,000 in a 5-year Post Office Monthly Income Scheme (POMIS) with an annual interest rate of 6.60%, you will receive a fixed monthly income of approximately ₹550.

Please note that interest rates can change over time, so it's advisable to check with your local post office for the most current information.

If you invest ₹1,00,000 in a 5-year Post Office Monthly Income Scheme (POMIS) with an annual interest rate of 6.60%, you will receive a fixed monthly income of approximately ₹550.

Please note that interest rates can change over time, so it's advisable to check with your local post office for the most current information.

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