POMIS

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Introduction

The Post Office Monthly Income Scheme (POMIS) is a popular savings scheme in India that provides a secure investment option with fixed monthly returns. This government-backed scheme is ideal for individuals looking for stable and assured income, particularly retirees and conservative investors. The scheme ensures risk-free returns and is available at all post offices across India.

What is the Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme (POMIS) is a fixed-income investment scheme offered by India Post. It allows individuals to deposit a lump sum amount and receive guaranteed monthly interest payouts. The scheme is designed to cater to risk-averse investors who seek regular income with low risk.

Features of POMIS

Guaranteed Monthly Returns: Investors receive fixed monthly interest payments, ensuring a steady income.
Government-Backed: The scheme is backed by the Indian government, making it a safe investment.
Fixed Tenure: The maturity period is five years.
Minimum & Maximum Investment:
- Minimum deposit: ₹1,000
- Maximum deposit:
  - ₹9 lakh (for single account holders)
  - ₹15 lakh (for joint account holders)
Interest Rate: The interest rate is reviewed quarterly by the government.
Nomination Facility: Investors can nominate a beneficiary to receive the funds in case of their demise.
Reinvestment Option: The matured amount can be reinvested into a fresh POMIS account or another post office scheme.

You may also want to know the Post Office Atal Pension Yojana

Documentation Required

To open a POMIS account, individuals need to provide the following documents:

Identity Proof:

Aadhaar Card
PAN Card
Voter ID
Passport
Driving License

Address Proof:

Aadhaar Card
Utility Bills (Electricity/Water/Telephone)
Bank Passbook

Passport-size Photographs

Duly Filled Application Form (available at the post office)

Initial Deposit Cheque or Cash

Current Interest Rates on Post Office Monthly Income Scheme

The interest rate for POMIS is subject to change quarterly, based on government notifications. As of 2025, the interest rate is 7.4% per annum, paid monthly.

How to Open a POMIS Account?

Opening a Post Office Monthly Income Scheme account is simple. Follow these steps:

Step 1: Visit the Nearest Post Office

Go to any post office in India and collect the POMIS application form.

Step 2: Fill Out the Application Form

Provide all the necessary details, including nominee information, and attach the required documents.

Step 3: Make the Initial Deposit

Deposit the investment amount via cheque or cash, adhering to the minimum and maximum deposit limits.

Step 4: Submit the Application

Submit the completed application form along with the required documents to the post office official.

Step 5: Receive the Passbook

Once you activate the account, the post office will issue a POMIS passbook containing your investment details.

You may also want to know Pradhan Mantri Vaya Vandana Yojana

Eligibility Criteria to Open a POMIS Account

To open a POMIS account, individuals must meet the following eligibility criteria:

Indian Citizens: Only Indian residents can invest in POMIS. NRIs are not eligible.
Minimum Age:
- Adults (18 years and above)
- Minors (above 10 years, under guardian supervision)

Early Withdrawal Penalty

Before 1 year: No withdrawal permitted.
After 1 year but before 3 years: 2% penalty on the principal amount.
After 3 years but before 5 years: 1% penalty on the principal amount.

Benefits of Post Office Monthly Income Scheme (MIS)

Stable and Regular Income: Fixed monthly payouts provide financial stability.
Low-Risk Investment: Since it is government-backed, the risk is minimal.
No TDS Deduction: Interest earned is not subject to Tax Deducted at Source (TDS).
Nomination Facility: Ensures seamless fund transfer to a nominee.
Reinvestment Option: Upon maturity, funds can be reinvested into other post office savings schemes.

Post Office Monthly Income Scheme Vs Other Saving Schemes of the Post Office

Feature	POMIS	Post Office Savings Account	Post Office Recurring Deposit	Post Office Time Deposit
Interest Rate	7.4% p.a. (2025)	4% p.a.	5.8% p.a.	6.7%-7.5% p.a
Tenure	5 years	No fixed tenure	5 years	1, 2, 3, or 5 years
Payout Frequency	Monthly	Quarterly	Quarterly	Annually
Tax Benefit	No tax benefit	No tax benefit	No tax benefit	5-year deposits are eligible under 80C

Conclusion

The Post Office Monthly Income Scheme (POMIS) is an excellent investment option for individuals looking for a stable and risk-free monthly income. With attractive interest rates, government backing, and easy accessibility, POMIS is ideal for retirees and conservative investors. By offering assured monthly returns, it ensures financial security and peace of mind. Before investing, individuals should assess their financial goals and consider reinvestment options upon maturity.

Frequently Asked Questions

Can I open multiple POMIS accounts?

Yes, individuals can open multiple accounts, but the total deposit limit should not exceed ₹9 lakh (single account) or ₹15 lakh (joint account).

Is the interest earned from POMIS taxable?

Yes, the interest earned is taxable but is not subject to TDS.

Can I transfer my POMIS account from one post office to another?

Yes, you can transfer your POMIS account to another post office anywhere in India.

Can minors open a POMIS account?

Yes, minors above 10 years can open a POMIS account under the supervision of a guardian.

Can NRIs invest in the Post Office Monthly Income Scheme?

No, NRIs are not eligible to invest in POMIS.

What happens if I withdraw before 5 years?

Early withdrawal incurs penalties: 2% deduction (1-3 years), 1% deduction (3-5 years).

Can I reinvest the POMIS amount after maturity?

Yes, the matured amount can be reinvested in POMIS or other post office schemes.

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