Post Office Monthly Income Scheme
The Post Office Monthly Income Scheme (POMIS) is a government-backed plan where you deposit a lump sum and receive steady monthly interest income — ideal for retirees and risk-averse investors. You can invest from ₹1,500 up to ₹4.5 lakhs individually (or ₹9 lakhs in a joint account) at 7.6% per year for a 5-year term. Visit your nearest post office to open an account with a simple form and KYC documents.
About This Scheme
The Post Office Monthly Income Scheme (POMIS) is a government-backed plan where you deposit a lump sum and receive steady monthly interest income — ideal for retirees and risk-averse investors. You can invest from ₹1,500 up to ₹4.5 lakhs individually (or ₹9 lakhs in a joint account) at 7.6% per year for a 5-year term. Visit your nearest post office to open an account with a simple form and KYC documents.
Full official description
Post Office Monthly Income Scheme (POMIS) is an investment scheme recognized and validated by the Ministry of Finance. It is one of the highest-earning schemes with an interest rate of 6.6%. The interest in this scheme is disbursed monthly. After opening a POMIS account, individuals can invest a suitable amount based on affordability, which, however, should not be less than ₹1500. It provides low risk and steady income where an investor can deposit every month and get interested of MIS in the post office according to their applicable monthly rate. The income on investment is given by the concerned post office every month.
Features of the POMIS scheme:
- Maturity period- The maximum tenure of the Indian post office monthly income scheme is 5 years.
- Number of holders- At least 1 and at most 3 individuals can hold post office MIS.
- Nomination- Only the nominee will get all scheme benefits after the investor’s demise. Nominee can be assigned later on after opening an account.
- Transfer- Individuals can transfer their MIS account in one post office to another anywhere in India.
- POMIS bonus- Accounts opened after 1st Dec 2011 have no bonus facility. However, those opened before that enjoy a 5% bonus.
- Taxability- Any income from this scheme does not come under TDS or tax deduction. The post office monthly income scheme tax benefit is zero.
Benefits
- Regular monthly interest income — 7.6% per annum (5-year tenure)
- Single account: invest ₹1,500 to ₹4,50,000
- Joint account: invest up to ₹9,00,000
- Zero market risk — backed by the Government of India
- No TDS (Tax Deducted at Source) on interest income
- 5-year lock-in; premature withdrawal possible after 1 year
- Account transferable between post offices anywhere in India
Who Can Apply (Eligibility)
- Must be a citizen of India, residing in India
- Minimum age: 18 years
- NRIs (Non-Resident Indians) are not eligible
- Guardians can open accounts for minors aged 10 years and above (funds accessible at age 18)
- Joint accounts allowed for up to 3 adults
Exclusions
This system does not apply to non-resident Indians.
How to Apply
To open an account under Post Office Monthly Income Scheme, follow the steps given below- First, you must have a Post Office savings account. Open the same account if you do not have one Get an application form from your Post Office or download the POMIS Account application form from the following link: https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/Accountopening.pdf Fill and submit the form along with the self-attested copies of all the required documents at the post office. You must carry the original documents for verification. Mention the Name, DOB, and Mobile no. of the nominees (if any) Proceed to make initial deposits (Minimum Rs.1000/-) via cash or cheque
Frequently Asked Questions
How Can I Withdraw Money From My POMIS Account After The Tenure?
You can withdraw the deposited amount from the account either from the post office or you can also get it credited in your savings account through ECS. You can follow the usual way and withdraw the amount monthly. However, the investor is allowed to let some amount accumulate and withdraw it all together after a few months.
Can I Transfer POMIS Account?
Yes, your account can be transferred from one post office to another for absolutely free.
Can I Reinvest My Accumulated Amount In POMIS?
This is one of the best features of this scheme. It allows the investors to reinvest their accumulated money at the end of the tenure.
Is There Any Tax Deduction At Source?
No, there is no TDS (Tax Deduction at Source). But, the interests earned are taxable.
Is There Any Nomination Facility Available In POMIS?
Yes, the scheme allows you to select and appoint a nominee against the account who will get the accumulated amount in case of unfortunate demise.
Does The Scheme Offer Tax Rebate?
No, POMIS does not offer any tax benefits under Section 80C of the Income Tax Act, 1961.
Can A Senior Citizen Also Invest In POMIS?
Yes, infact POMIS is most suitable for senior citizens and retired persons.
From Where Can I Get The Withdrawal Form Of POMIS?
You can get the withdrawal form directly from the post office or download it from the India Post website.
What Happens When The Investor Does Not Withdraw The Funds After 5 Years?
After the maturity of 5 years, if the investor does not withdraw the amount, then he will continue to earn a simple interest for up to 2 years (as per the post office savings account interest rate).
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Proof of Identity: Copy of government issued ID such as Passport / Voter ID card / Driving License/Aadhaar, etc.
- Proof of Address: Government-issued ID or recent utility bills.
- Passport size photographs