What is Post Office Monthly Income Scheme

The Post Office Monthly Income Scheme (POMIS) is a savings scheme offered by India Post that provides a guaranteed monthly income to investors. It’s popular among conservative investors, especially retirees, because of its low risk and fixed returns.

Key Features of POMIS (as of 2024-2025):

Interest Rate: 7.4% per annum (payable monthly)

Minimum Investment: ₹1,000

Maximum Investment:

₹9 lakhs (single account)

₹15 lakhs (joint account – up to 3 adults)

Interest Payment: Monthly, credited directly to the savings account

Tenure: 5 years

Premature Withdrawal: Allowed after 1 year, with penalties:

1–3 years: 2% deduction from principal

After 3 years: 1% deduction

Tax Benefits: No tax deduction at source (TDS), but interest is fully taxable

Who Should Invest?

Retired individuals

People seeking a steady, risk-free monthly income

Conservative investors

How to Open a POMIS Account:

1. Visit your nearest post office.
2. Submit Form-1, passport-size photograph, and identity/address proofs.
3. Deposit the amount via cheque or cash.