If you are looking for a risk-free investment that guarantees a fixed monthly income, the Post Office Monthly Income Scheme (POMIS) is an excellent choice. Offered by the India Post, this scheme provides a secure and reliable investment opportunity with a guaranteed interest rate of 7.4% per annum. Investors can deposit a lump sum amount and receive monthly interest payouts, making it ideal for individuals seeking a stable income source without market fluctuations.
Key Features of POMIS
POMIS is designed to be an accessible and secure investment plan. Here are its essential features:
| Feature | Details |
|---|---|
| Interest Rate | 7.4% per annum (monthly payout) |
| Minimum Investment | ₹1,000 |
| Maximum Investment | ₹9 lakh (Single Account), ₹15 lakh (Joint Account) |
| Investment Tenure | 5 Years |
| Risk Factor | Risk-free and backed by the Government of India |
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings plan that offers fixed monthly interest to investors. This scheme is ideal for retirees, senior citizens, or anyone looking for a stable secondary income without exposure to market risks.
Investors deposit a lump sum amount, and the interest generated is credited monthly, ensuring a regular income stream throughout the investment tenure.
How to Open a POMIS Account?
Opening a POMIS account is a straightforward process. Here’s how you can do it:
Eligibility Criteria
- Any Indian citizen above 18 years can open a POMIS account.
- Minors above 10 years can also open an account under guardian supervision.
- NRI (Non-Resident Indians) are not eligible.
Investment Limits
- Minimum Deposit: ₹1,000
- Maximum Deposit for Single Account: ₹9 lakh
- Maximum Deposit for Joint Account: ₹15 lakh (shared among account holders)
Steps to Open an Account
- Visit the nearest Post Office with the required documents.
- Fill out the POMIS application form with necessary details.
- Submit KYC documents, including identity proof, address proof, and passport-size photographs.
- Deposit the investment amount through cash, cheque, or demand draft.
- Receive your passbook, which will record all transactions and interest payments.
Benefits of Investing in POMIS
POMIS offers multiple advantages, making it a popular choice for conservative investors:
1. Guaranteed Returns
The interest rate of 7.4% per annum is fixed and determined by the government, ensuring stable returns.
2. Risk-Free Investment
Since this scheme is backed by the Government of India, there is no risk of capital loss.
3. Regular Monthly Payouts
Investors receive fixed monthly interest payments, providing a consistent source of income.
4. Premature Withdrawal Facility
Though the tenure is 5 years, premature withdrawal is allowed after 1 year, subject to nominal penalties:
- If withdrawn before 3 years: 2% deduction from the principal amount.
- If withdrawn after 3 years: 1% deduction from the principal amount.
5. Joint Account Facility
- Up to three individuals can open a joint POMIS account.
- The maximum investment limit (₹15 lakh) applies to joint accounts.
- Interest earnings are distributed equally among all account holders.
How Much Interest Will You Earn?
The monthly interest depends on the deposited amount. Here’s an example:
| Investment Amount | Monthly Interest (7.4%) | Annual Interest Earned |
| ₹1,00,000 | ₹616 | ₹7,400 |
| ₹5,00,000 | ₹3,083 | ₹37,000 |
| ₹9,00,000 | ₹5,550 | ₹66,600 |
| ₹15,00,000 | ₹9,250 | ₹1,11,000 |
Required Documents for Opening a POMIS Account
To open a POMIS account, you need the following documents:
- Identity Proof: Aadhaar Card, PAN Card, Voter ID, Passport, or Driving License
- Address Proof: Aadhaar Card, Utility Bills, or Passport
- Passport-sized Photographs (2 copies)
- Duly filled Account Opening Form (available at Post Office)
- Initial Deposit Cheque or Cash
FAQs About Post Office Monthly Income Scheme
1. Can I open multiple POMIS accounts?
Yes, you can have multiple POMIS accounts; however, the total deposit across all accounts should not exceed the maximum limit (₹9 lakh for individuals and ₹15 lakh for joint accounts).
2. Is the POMIS interest taxable?
Yes, interest earned under POMIS is taxable as per the investor’s income tax slab. However, no TDS (Tax Deducted at Source) is deducted at the time of payment.
3. Can I reinvest the maturity amount?
Yes, after 5 years, you can reinvest the maturity amount in the same or another scheme.
4. Is POMIS better than a Fixed Deposit (FD)?
POMIS offers monthly payouts, whereas FDs usually provide quarterly or yearly interest payouts. It is an excellent option for those seeking regular income.
5. What happens if I don’t withdraw my interest?
If you do not withdraw your interest, it remains in your post office account without earning additional interest.
Conclusion
The Post Office Monthly Income Scheme (POMIS) is a safe and reliable investment that ensures fixed monthly returns without market risks. With secure returns, flexible investment limits, and easy accessibility, it is an ideal choice for retirees, homemakers, and those looking for a secondary income source. If you seek a stable, government-backed savings plan, POMIS is worth considering
Click here to learn more
Sachin is a dedicated writer specializing in education, career, and recruitment topics, delivering clear and actionable insights to empower readers.