Post Office Monthly Income Scheme (POMIS) offers a safe way for you to earn a steady monthly income. Supported by the government, this scheme provides a well-known interest rate of 6.7% for 2025. It’s a great option if you want a fixed monthly payout without worrying about market ups and downs.
Overview of Post Office Monthly Income Scheme (POMIS)
POMIS is a government-supported investment plan from the Indian Post Office that promises you a fixed monthly interest, paid every month. It offers an annual interest rate of 6.7% for 2025, making it one of the best choices for investors who want to avoid risk.
This scheme is perfect if you want to protect your money, earn more than many fixed-income options, and receive a guaranteed monthly income.
Main Features of POMIS Scheme
- You can move your POMIS account to any other post office at no extra cost.
- Each deposit needs a separate account. You can open multiple accounts up to the investment limit.
- When your 5-year term ends, you can reinvest your maturity amount in POMIS.
- You can add a nominee to your account to protect your money after you pass away.
- No Tax Deducted at Source (TDS) on your investment amount, but the interest income is taxable.
- The scheme’s maturity period is 5 years, after which your full invested money is returned.
- Early withdrawal before 5 years is allowed but with penalties: no benefits if withdrawn within 1 year; 2% penalty if withdrawn between 1 and 3 years; 1% penalty if withdrawn after 3 years.
Downsides of Post Office Monthly Income Scheme
- The investment does not get tax deduction benefits under section 80C.
- If you don’t withdraw the monthly interest payments, they stop earning further interest.
- You must pay tax on the interest earned despite no TDS being deducted.
Who Can Invest in POMIS?
This scheme works well if you want steady monthly income without market risks. It’s especially suitable for senior citizens and retired people who want to cover their monthly expenses with a safe government-backed plan. Only Indian residents can invest; Non-Resident Indians (NRIs) are not eligible.
Minors aged 10 years or above can also open an account, though the investment limits differ for minors.
How to Open a POMIS Account?
- If you don’t have one, first open a Post Office Savings Account.
- Visit the post office and get the POMIS application form.
- Submit the filled form with ID proof, address proof, and two passport-sized photos. Carry original documents for verification.
- Have your nominee or witness sign as required.
- Pay the deposit amount by cash or cheque. Post-dated cheques with the account opening date are accepted.
- After processing, you’ll get your account details from the post office staff.
Early Withdrawal Rules for POMIS
| Withdrawal Time | Penalty |
|---|---|
| Before completing 1 year | No benefits given |
| Between 1 and 3 years | Refund after 2% penalty deduction |
| Between 3 and 5 years | Refund after 1% penalty deduction |
Is POMIS Right for You?
If you’re a careful investor who wants steady monthly returns and safety of your capital, POMIS is a smart choice. It’s made for people looking for a simple, dependable government-backed plan with fixed monthly income and no exposure to market risks.
Common Questions about Post Office Monthly Income Scheme
How is investment shared in a joint account? All joint account holders have equal shares in the account.
What happens if I don’t withdraw the maturity amount? The money stays in your account for two more years and earns simple interest according to Post Office Savings Account rules.
Is this scheme suitable for senior citizens? Yes, seniors can keep their savings here and receive fixed monthly income for their expenses.
Can I transfer my POMIS account if I move to another city? Yes, transferring your account to another post office is free and simple.