Post Office Monthly Income Scheme (POMIS)

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.

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

1. Eligibility Criteria

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

• Minors can open accounts with a guardian

2. Documents Required

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.

• Deposits cannot be withdrawn within the first year from the date of deposit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

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.