The Post Office Monthly Income Scheme (POMIS) is a secure and lucrative savings option provided by the Indian Postal Service. Tailored for individuals seeking a regular and predictable monthly income, POMIS offers a fixed investment period of five years, with interest payouts delivered on a monthly basis.

 

The government-set interest rates, straightforward application process, and assurance of a stable income stream makes the monthly income scheme a reliable investment for those looking to secure their financial future.

Interest Rates

At present, the current Post Office MIS interest rates are as mentioned in the table below -

Time Period

Rate of Interest (p.a.)

1st October 2023 - Present

7.40%

*The above mentioned interest rates are subject to change at the government’s discretion.

 

Please note that -

  • Interest accrues monthly from the date of account opening and continues until maturity, with payouts at the end of each month

  • Unclaimed monthly interest does not accumulate additional interest, emphasising the importance of regular withdrawal by the account holder

  • Excess deposits are promptly refunded, and interest is recalculated based on the Savings Account rates from the date of opening the account to the date of the refund

Features and Benefits

Investment duration

The Post Office Monthly Income Scheme has a fixed term of 5 years

Interest rate

The interest rates for POMIS are set by the government and are subject to change. The interest is paid out monthly.

Investment limit

The maximum investment limit for an individual is ₹9 Lakhs for a single account and ₹15 Lakhs for a joint account

Interest payout

The interest is paid out on a monthly basis, providing a regular income stream to the investor

Taxation

The interest earned is taxable, and investors need to declare it as income while filing their tax returns

Nomination facility

Investors can nominate a person to receive the proceeds of the scheme in case of their demise

Premature withdrawal

Premature withdrawal is allowed after one year, but there may be a penalty for early withdrawal

Eligibility Criteria and Documents Required

1. Eligibility Criteria

  • POMIS is open to Indian residents, including adults and minors

  • Minors can open accounts with a guardian

2. Documents Required

Type of Proof

Documents

Identity proof

  • For Adults

    • Aadhar card

    • Passport

    • Voter ID

    • Driving licence

    • PAN

    • Passport

  • For Minors

    • Birth certificate

    • School ID

Address proof

  • Utility bills

  • Passport

  • Voter ID

  • Aadhar card

Other documents

  • Prescribed application form available at the post office.

  • Passport-sized photographs of the account holder and guardian (for minors)

It is important to note that these requirements can vary, and is advisable to check with the post office for any changes in the eligibility criteria and required documents.

How to Open a POMIS Account

To open a Post Office MIS  account, you can follow these general steps - 

  • Step 1: Go to your nearest post office offering

  • Step 2: Request the account opening form

  • Step 3: Fill in the form with necessary details

  • Step 4: Submit required documents - identity proof, address proof, photos, and PAN card if needed

  • Step 5: Pay the initial deposit; confirm the minimum and maximum limits

  • Step 6: Review and submit the form with the deposit

  • Step 7: Obtain your passbook recording deposits and interest

 

Remember to collect the receipt as proof of your investment. Always verify the current requirements and terms at the post office, as they may be subject to change.

Premature Closure of POMIS Account

  • Deposits cannot be withdrawn within the first year from the date of deposit

  • In the event of an account closure between the 1st and 3rd year from the date of opening the account, a 2% deduction from the principal is applicable

  • If the account is closed between the 3rd and 5th year from the date of account opening, a 1% deduction from the principal is applicable

Who Should Consider Investing

The Post Office MIS is generally considered by individuals who are looking for a fixed and regular monthly income.

 

Also, conservative investors who prioritise capital preservation and are looking for a low-risk investment option may find Post Office MIS attractive due to its government-backed nature.

 

Furthermore, income-driven investors who rely on periodic income for their financial needs, such as paying bills or meeting regular expenses, may benefit from the monthly interest payouts.

 

Risk-averse investors who prefer guaranteed returns over higher but riskier investment options may also find this monthly income scheme a suitable option. However, investors should assess their financial goals, risk tolerance, and investment preferences before deciding if the scheme aligns with their overall investment strategy.

 

Investors can make use of the Post Office MIS calculator to determine the potential returns you could earn on your investment to make an informed decision.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

Read More

FAQs

What minimum amount do I need to invest in a Post Office Monthly Income scheme?

The minimum investment amount for investing in POMIS is ₹1000.

How can I make withdrawals from my POMIS account after maturity?

POMIS comes with multiple withdrawal options. The first is from the post office, and the second is to transfer the amount to your savings account through ECS.

Can I transfer my Post Office MIS account?

Yes, you can transfer your Post Office Monthly Income Scheme account from one post office to another.

Can a senior citizen also invest in the Post Office Monthly Income Scheme?

Yes, senior citizens can also consider investing in POMIS.

Is premature withdrawal allowed in POMIS?

Yes, premature withdrawal is allowed in the Post Office MIS. However, this comes with a penalty.

Can I get a loan against my POMIS account?

No, the Post Office Monthly Income Scheme does not allow you to get a loan against your account.

Home
active_tab
Loan Offer
active_tab
Download App
active_tab
Credit Score
active_tab