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 -
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
POMIS 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 withdrawal1. 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 |
|
Address proof |
|
Other documents |
|
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.
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.
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.
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