If you are looking for a safe investment option that gives guaranteed monthly income, the Post Office Monthly Income Scheme (POMIS) can be a good choice. Backed by the Government of India, this scheme is especially popular among senior citizens, salaried individuals, and families who want stable income without taking market risks.
In this article, we explain everything about POMIS — from what it is, current interest rate, eligibility, how to apply, advantages, disadvantages, and important rules — in clear and simple language.
What is Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme offered by India Post. Under this scheme, you invest a lump sum amount once, and in return, you receive fixed interest every month for a period of five years.This scheme is designed for people who want:
•Regular monthly income
•Zero market risk
•Capital safety
Because it is supported by the Government of India, POMIS is considered one of the safest investment options in the country.
Current Interest Rate of POMIS (Latest)
As per the latest government notification:
•Interest Rate: 7.4% per annumInterest •Payment: Monthly
•Tenure: 5 years
The interest is calculated annually but paid every month directly into your post office savings account.
Who Can Invest in POMIS?
You are eligible to invest in POMIS if you are:
•An Indian resident adult (18 years or above)
•A joint account holder (up to 3 adults)
•A guardian investing on behalf of a minor (10–18 years)
•A minor above 10 years (in own name)
⚠️ Non-Resident Indians (NRIs) are not allowed to open a new POMIS account.
Monthly Income Example
Let us understand with a simple example:
•If you invest ₹9,00,000,you will earn around ₹4,625 per month as interest.
•If a joint account invests ₹15,00,000,the monthly income will be even higher.
This makes POMIS very useful for retired persons or families managing monthly expenses.
How to Apply for POMIS (Step-by-Step)
Applying for POMIS is easy and mostly done offline.
•Step 1: Visit Nearest Post OfficeGo to a Branch or Sub Post Office that offers savings schemes.
•Step 2: Open a Post Office Savings AccountA savings account is usually required to receive monthly interest.
•Step 3: Fill POMIS Application FormAsk for the Monthly Income Scheme (MIS) form.
•Step 4: Submit Documents
You need:
•Aadhaar card
•PAN cardAddress proof
•Passport-size photos
•Nominee details
Step 5: Deposit Amount
Deposit the investment amount via cash or cheque, as allowed by the post office.
Advantages of POMIS
✔ Government-backed and very safe
✔ Fixed and guaranteed monthly income
✔ No market risk
✔ Suitable for senior citizens and conservative investors
✔ Simple rules and easy management
Disadvantages of POMIS
❌ Interest income is taxable
❌ No Section 80C tax benefit
❌ Money is locked for 5 years
❌ Premature withdrawal attracts penalty
❌ Interest does not compound automatically
Premature Withdrawal Rules
•Withdrawal before 1 year → Not allowed
•Withdrawal after 1 year but before 3 years → 2% penalty
•Withdrawal after 3 years → 1% penalty
Official Government Link
For official updates and information, visit:👉 https://indiapost.gov.in/vas/Pages/PostalSavings.aspx
Is POMIS Worth It?
If your priority is safety, stable monthly income, and peace of mind, POMIS is a reliable option. However, if you are looking for higher returns or tax savings, you may need to explore other investment options.
Final Words
The Post Office Monthly Income Scheme continues to remain a trusted savings option for millions of Indians. With guaranteed returns and government support, it is ideal for those who want steady income without financial stress.
