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Post Office Monthly Income Scheme (POMIS)

  • Author: Saphi Evangelarity Syiem
  • 5 min read
  • September 8, 2023
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The Post Office Monthly Income Scheme enables you to allocate a specific sum and receive a pre-established monthly interest rate on your investment. you can open this account at your nearest post office. In this article, we will explore various aspects of this scheme, including eligibility criteria, interest rates, and more.

As of the 2023-2024 fiscal year, POMIS offers a 7.40% interest rate.

Post Office Monthly Income Scheme

The Post Office Monthly Income Scheme (POMIS) is a modest savings scheme supported by the Government of India that allows investors to save a specified amount each month. Following that, interest at the relevant rate is added to the investment and handed to the depositor(s) every month

The Post Office Monthly Income Scheme Features

The following are the essential elements of the Post Office MIS plan:

  • Maturity Duration – The scheme’s period of maturity is five years or sixty months from the account’s official opening.
  • Holders of Account – POMIS accounts can be owned either jointly or individually. For joint accounts, the maximum number of holders is three adults.
  • Maximum and Minimum amounts of deposit – The minimum deposit amount in the Post Office MIS plan is Rs. 1,000. (and thereafter in multiples of 1,000)

The Maximum deposit amount in the Post Office Monthly Income Scheme

Account TypeMaximum Limit
Single AccountRs. 9 Lakhs
Joint AccountRs. 15 Lakhs
Minor AccountRs. 3 Lakhs
  • Nomination Option – A nominee facility is offered and may be altered later once a beneficiary opens an account (i.e. a family member). But, the successor can only collect the rewards after the account holder’s death.
  • Account Transfer – POMIS accounts can be directly moved from one PO to the other.
  • Incentive – There is no bonus available for accounts created on or after December 1st, 2011. Accounts opened before were entitled to a 5% deposit incentive.
  • Tax – This scheme is subjected to taxation and is not under Section 80C of the IT Act. Also, it has zero TDS.

Current Post Office Monthly Income Scheme Interest Rates

The rate of interest for the Post Office Monthly Income Scheme (POMIS) is determined and revised quarterly by the Central Government and the Ministry of Finance, taking into account the yields on government bonds with corresponding durations. 

As of the 2023-2024 fiscal year, POMIS offers a 7.40% interest rate.

Interest rates are subject to alteration upon notice from the government. POMIS interest is paid out weekly.

Eligibility of MIS Scheme in Post Office

  • A POMIS account can only be opened by a resident Indian.
  • This system does not apply to non-resident Indians.
  • Anyone above the age of 18 can open an account.
  • You can open an account on behalf of a minor who is 10 years old or older. When kids reach the age of 18, they will be able to access the fund.
  • After reaching the age of majority, a minor must apply for conversion of the account in his name.

Who should invest in the Post Office Monthly Income Scheme?

  • Investors who desire an investment with an assured monthly income and zero risks. It is advantageous for retirees or seniors who have reached the point of no return.
  • An investment for investors who want a set income to fund the cycle of life.
  • Investors are interested in making investments for the long-term period.

Maximum Investment in Post Office Monthly Income Scheme

While there are no constraints on the number of accounts an individual can maintain, there are constraints on the aggregate amount that can get invested across all accounts of POMIS.

  • The highest investment in POMIS for a solely run account is Rs.9 lakhs.
  • A maximum of Rs.15 lakhs can be invested in POMIS by joint holders (up to 3 joint holders).

Benefits of Post Office Monthly Income Scheme

  • When using a check to create an account, the cheque realization date is the account opening date.
  • In the event of joint accounts, every account holder will have equal portions.
  • There is no restriction on the number of POMIS accounts that can be held individually or jointly. Subject to the cumulative balance maximum criterion
  • The Post Office Monthly Income Scheme Account is available to minors aged 10 and up. When he or she reaches the age of 18, he or she will be invited to switch his or her underage account to an adult one.
  • The post office CBS or ECS deposits credit monthly directly into the investor’s savings account post office.
  • Post Office Monthly Income Scheme accounts can keep producing interest for up to two years after maturity if the investor does not remove the money. The relevant interest rate will be equivalent to that of a regular Post Office savings account.

Documentation Required

  • A copy of an ID issued by the government, like an Indian Voter Identification card, passport, Aadhaar card, or driver’s license.
  • An ID issued by the government or current utility bills.
  • Passport-sized photos

Aadhaar and PAN Now Mandatory for POMIS

  • As per a recent notification issued by the Ministry of Finance, it is now mandatory to provide your Aadhaar number and PAN to open a new POMIS account. If you have not been assigned an Aadhaar yet, you need to provide proof of application of enrollment for Aadhaar card or enrollment ID at the time of account opening and furnish the Aadhaar number to the accounts office within 6 months from the date of opening the account.

Post Office Monthly Income Scheme Account Creation Process

Follow the procedures below to create an account under the Post Office Monthly Income Scheme.

  •  Procure a POMIS Form from your nearest post office
  • You should have a savings account from the post office. If none, make one.
  • Purchase an application form at your local PO. You can also download the POMIS Account Application Form.
  • Fill out the form and bring it to the post office with self-attested copies of all relevant papers. Please keep in mind that you must bring the original documents for verification.
  • If any, mention the names, phone numbers, and DOB of nominees.
  • Proceed to make your first cash or cheque deposits (The lowest amount is Rs.1000/-).

POMIS Early Withdrawal Penalty

If you have to withdraw the money before 5 years, here’s what happens:

  • You cannot withdraw an amount within the first year of deposit.
  • Between 1 to 3 years = 2% deduction on the principal amount and the remaining amount will be transferred to your account.
  • From  3 to 5 years = 1%  deduction reduction on the principal amount and the remaining amount will be transferred to your account.

Post Office Monthly Income Scheme Calculation

After creating an account, you must invest. The minimum investment for one account is Rs. 1k while the max. investment is Rs. 9 lakhs

The minimum investment for joint accounts is Rs.1k while the max. investment is Rs.15 lakhs.

Post Office Monthly Income SchemeInterest Rates of Vs Various Post Office Saving Schemes 

Type of Saving SchemeInterest Rate
5 years Post Office Time Deposit 6.7%
1, 2, 3 years Post Office Time Deposit 5.5%
Post Office Recurring Deposit6.2%

What sets the Post Office Monthly Income Scheme apart from other monthly income schemes?

POMISMutual Funds Monthly Income PlanInsurance Monthly Income Plan
Monthly income plan with 6.70 percent interest -FixedA mutual fund that is debt-oriented and invests in 20 percent debt and 80 percent equities.A retirement account in which the investor gets an annuity as monthly payments.
Monthly income assuranceThere is no certainty of monthly income because the returns are linked to the fund’s market performance.Monthly income that is set and assured
TDS is not applied, however, the interest gets taxedInapplicable TDSMonthly annuities are taxed.
Ideal for risk-averse individuals seeking monthly income rather than equity investments.Ideal for investors with a medium risk tolerance looking for debt and equity assets.Ideal for investors who want to get the benefits of both insurance and investing.
The highest investment amount is Rs.4.5 lakhs (one account) and Rs.9 lacs ( combined account)The quantity of investment is not restricted.Absence of max. amount.
Fixed returns at 7.40%There are no guaranteed returns.Rather than collecting earnings, this strategy focuses on safeguarding money. 

Do you want to invest in something more secure than POMIS?

Have you thought about investing in real estate? You should if you haven’t already.

But how is this possible? 

Currently, real estate stands as one of the most dependable and enduring investment opportunities. It’s advisable to take action and commence your investments without delay.

But are you unclear about where to start?

Assetmonk is a premium Indian alternative investment platform featuring investments in Chennai, Bangalore, and Hyderabad. Assetmonk offers investments in commercial real estate structured debt with just Rs. 10 lacs. It offers an assured IRR of 17 percent. 

If you are looking for the best investment opportunities in India for fixed income besides POMIS, then you must invest in the real estate market. A promising avenue within this sector is the realm of structured debt investments, particularly in commercial real estate. Structured debt investments in real estate involve tailored financing solutions designed for commercial real estate projects, providing investors with the opportunity to potentially achieve attractive returns and regular earnings. 

The entry into this investment avenue is accessible with a relatively modest initial amount of 10 lakhs, and it offers the potential for returns ranging from 12% to 20%. These investment opportunities are facilitated through reputable alternative investment platforms like Assetmonk.

Related Articles

  1. Saving Schemes In India 2023 Check Interest Rates & Eligibility
  2. 18 Best Investment Options in India to get Higher Returns 2023
  3. Post Office Investments – PPF, NSC, FD, RD, MIS, KVP, SSY.


1.How can I withdraw money from my POMIS account after the tenure?

You can retrieve the contributed amount from the account at the post office or have it credited to your savings account via ECS. You can withdraw the money every month as normal. But, the investor is permitted to let some money build before withdrawing it all at once within a few months.

2.Can a single account be changed to a joint account?

Yes, it can be changed. The opposite, i.e., from joint to single account can also be changed.

3.What is the POMIS investment limit in 2023?

The maximum deposit limit under POMIS is 9 lakhs for an individual account and 15 lakhs for a joint account. 

4.Can I Transfer POMIS Account?

Yes, your account can be transferred from one post office to another for absolutely free.

5.Is There Any Tax Deduction At Source?

No, there is no TDS (Tax Deduction at Source). But, the interests earned are taxable.

6.Is there any nomination facility available in POMIS?

POMIS enables you to choose and designate a beneficiary against the account who would receive the collected sum in the event of your untimely death.

7.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).

8.Can the nominee withdraw the amount in the case of the death of the investor before maturity?

Yes, nominees can apply for death claim settlement immediately upon the death of the POMIS investor, even if the lock-in period of 5 years is not complete. They can apply for the death claim and get a refund of the investment amount and interest accumulated till death. 

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