The Post Office Monthly Income Scheme (POMIS) is one of the most popular small savings schemes offered by India Post under the Ministry of Finance, Government of India. This scheme is designed especially for individuals who prefer a low-risk investment option with fixed and steady returns. Backed by the Government, POMIS guarantees safety of capital while providing a monthly income in the form of interest.
In this guide, we will cover eligibility, features, benefits, interest rates, application process, withdrawal, taxation, and FAQs related to the Post Office Monthly Income Scheme (POMIS).
What is Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme is a fixed-income investment plan available at all post offices across India. It allows investors to deposit a lump sum amount, and in return, earn a fixed monthly income in the form of interest.
- Interest Rate (2025) – 6.6% per annum (disbursed monthly)
- Tenure – 5 years
- Minimum Investment – ₹1,500
- Maximum Investment – ₹4,50,000 (single account), ₹9,00,000 (joint account), ₹3,00,000 (minor account)
For example, if you invest ₹1,00,000, you will earn around ₹550 per month as interest for 5 years.
Features of Post Office Monthly Income Scheme
- Maturity Period – The lock-in period is 5 years, after which you can withdraw or reinvest.
- Account Holders – You can open the account individually, jointly (up to 3 holders), or on behalf of a minor.
- Nomination Facility – A nominee can appoint, who will receive the benefits after the investor’s demise.
- Transfer Facility – POMIS accounts can transferred across any post office in India.
- Capital Protection – Since it is government-backed, your investment is completely safe.
- Bonus Facility – Accounts opened before December 1, 2011, received a 5% bonus on maturity. New accounts do not have this benefit.
- Taxability – POMIS income is taxable. There is no TDS deduction, but interest is added to your annual income and taxed accordingly.
- Reinvestment Option – After maturity, you can reinvest the amount into another POMIS account or other post office savings schemes.
Benefits of Post Office Monthly Income Scheme
POMIS is one of the most trusted savings schemes in India because of the following advantages:
- ✅ Safe Investment – 100% government-backed.
- ✅ Fixed Monthly Returns – Provides steady monthly income, ideal for pensioners and risk-averse investors.
- ✅ Low Minimum Deposit – Can start with as low as ₹1,500.
- ✅ No Market Risk – Returns not linked to stock market fluctuations.
- ✅ Flexible Ownership – Available for individuals, joint holders, and minors.
- ✅ Best for Senior Citizens – Ensures a regular monthly income post-retirement.
- ✅ Simple Process – Easy to open and manage through any post office.
Current Interest Rates of POMIS (2025)
The interest rates of small savings schemes revised quarterly by the Government of India.
| Duration | Interest Rate |
|---|---|
| 1 Year | 5.5% |
| 2 Years | 5.5% |
| 3 Years | 5.5% |
| 5 Years | 7.6% (POMIS) |
➡️ Currently, POMIS offers 6.6% monthly payout, making it one of the best fixed income options for conservative investors.
(👉 Related: National Pension Scheme for Traders and Self-Employed Persons is another great option for retirees.)
Investment Limits in POMIS
- Single Account – Minimum ₹1,500, Maximum ₹4,50,000
- Joint Account (up to 3 people) – Maximum ₹9,00,000
- Minor Account – Maximum ₹3,00,000 (converted to individual account when the child turns 18)
👉 For example:
- Investment of ₹2,00,000 at 6.6% = ₹1,100 monthly income.
- Investment of ₹4,50,000 at 6.6% = ₹2,475 monthly income.
Eligibility Criteria
- Applicant must be an Indian citizen and a resident of India.
- Minimum age – 18 years.
- Minor above 10 years can also open an account (guardian required).
- NRIs are not eligible for POMIS.
Application Process for POMIS
Currently, POMIS opening is offline at a post office.
Steps to Open an Account:
- Ensure you have a Post Office Savings Account.
- Get the POMIS account opening form from your nearest post office or download from the official link:
POMIS Application Form – India Post - Fill in the details and attach the required documents.
- Submit the form along with initial deposit (minimum ₹1,500).
- Provide nominee details (if any).
- Collect your account passbook after verification.
Documents Required
- Proof of Identity (Aadhaar Card, PAN Card, Voter ID, Driving License, Passport)
- Proof of Address (Utility bill, Aadhaar, Passport)
- Passport-size Photographs
- Age proof (for minor accounts)
Withdrawal & Premature Closure
- The lock-in period is 5 years. You cannot withdraw before maturity except under specific conditions.
- After maturity, you can either:
- Withdraw the principal + accumulated interest, or
- Reinvest in another scheme like Recurring Deposit (RD), Time Deposit, or Senior Citizen Savings Scheme (SCSS).
- Premature closure is allowed after 1 year with penalty:
- Before 3 years → 2% deduction on principal.
- After 3 years but before 5 years → 1% deduction on principal.
Tax Implications
- No TDS deduction by post office.
- Interest earned is taxable as per your income tax slab.
- No tax rebate under Section 80C of the Income Tax Act, 1961.
👉 For tax-saving alternatives, you can check: Public Provident Fund (PPF) and National Savings Certificate (NSC).
Frequently Asked Questions (FAQs)
1. How can I withdraw money from my POMIS account after 5 years?
You can withdraw from the post office directly or request the amount to be credited into your savings account via ECS.
2. Can I transfer my POMIS account to another post office?
Yes, account transfer across India is allowed free of cost.
3. Can I reinvest my maturity amount?
Yes, reinvestment is allowed in POMIS or other post office savings schemes.
4. Is TDS applicable on interest earned?
No, TDS is not deducted. But you must declare it as income while filing ITR.
5. Can NRIs invest in POMIS?
No, only resident Indians can open a POMIS account.
6. Is there any tax rebate under Section 80C?
No, POMIS does not provide 80C tax benefits.
Why Should You Invest in POMIS?
The Post Office Monthly Income Scheme is best suited for:
- Senior citizens who want monthly income after retirement.
- Conservative investors who prefer safety over high returns.
- Parents who want to invest on behalf of minors.
- Individuals looking for fixed income during inflation and uncertain markets.
Conclusion
The Post Office Monthly Income Scheme (POMIS) remains one of the most reliable fixed-return investments in 2025. With a guaranteed 6.6% annual interest, low entry requirement, and full government backing, it provides peace of mind for investors who prioritize stability and security.
If you are a risk-averse investor, pensioner, or someone planning for a child’s future, POMIS can be an excellent addition to your portfolio.
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