Post office depository service has a wide assortment of schemes that offer fixed returns on investment. These schemes are all stringed with the benefit of the sovereign guarantee, i.e. this investment avenue is government-backed. Therefore, these schemes are safer investment options compared to equity shares and many fixed-income options.
What is Post Office Monthly Income Scheme
Post office depository service has a wide assortment of schemes that offer fixed returns on investment. These schemes are all stringed with the benefit of the sovereign guarantee, i.e. this investment avenue is government-backed. Therefore, these schemes are safer investment options compared to equity shares and many fixed-income options.
Features of the POMIS scheme
Here the the significant features of the Post Office Monthly Income Scheme 2025–
- Lock-in Period: When you open a Monthly Income Scheme account with a post office, you cannot withdraw the amount deposited in such account prior to 5 years.
- Maximum Limit: You can make a maximum investment of Rs. 9 Lakhs in the scheme. Even if you hold the scheme in multiple post offices, the aggregate of all your deposits cannot exceed Rs. 9 Lakhs.
You can also open a joint account with 2 or 3 people wherein an aggregate sum of up to Rs 15 lakhs can be invested in this account. - Transferrable: In case, you are changing your residential status to a different city anywhere in India, you can transfer your POMIS account to a convenient post office. Your Post Office Monthly Income Scheme investment corpus and interest disbursal will be carried forward to such a post office.
- Joint account: A maximum of 3 individuals can open a joint account for this scheme. In the case of joint accounts, each investor possesses equal rights over the account. The maximum limit in the case of joint accounts is Rs. 15 Lakhs, and the singular limit is Rs. 9 Lakhs.
- Minor account: You can open a POMIS minor account in the name of your child. The Post Office Monthly Income Scheme age limit for minors is above 10 years. He/she can withdraw the amount after maturing for 18 years.
- Eligible residential status: Every Indian citizen is eligible to open a POMIS account; however, NRI individuals cannot.
- Auto-withdrawal: You can opt to withdraw the monthly interest amount on your investment through automatic transfer to your savings account through PDCs or ECS. If the POMIS account is with a CBS Post Office, then the interest amount can be directed towards any other CBS centric savings account.
- Penalty: In case you wish to withdraw your investment corpus before the lapse of the lock-in period, a penalty is charged on the withdrawal amount, depending on the time of such redemption.
- Investment amount: The account can be opened with a minimum of Rs. 1000 and in multiple of Rs. 1000.
- Tax benefits: The interest amount does not incur any Tax Deducted at Source (TDS); however, it also does not attract any tax benefits under Section 80C.
The following table demonstrates the maximum investment limit for the Post Office Monthly Income Scheme.
Account Type
Maximum Limit
Single Account
Rs. 9 Lakhs
Joint Account
Rs. 15 Lakhs
Current Interest Rates on Post Office Monthly Income Scheme
The following table includes the current and previous interest rates-
Time Interval | POMIS Interest Rate (Per Annum) |
From 1st January 2024 | 7.40% |
1st October 2023 – 31st December 2023 | 7.40% |
1st April 2023 – 30th June 2023 | 7.40% |
1st January 2023 – 31st March 2023 | 7.10% |
1st October 2022 – 31st December 2022 | 7.10% |
1st April 2020 – 30th September 2020 | 6.60% |
1st January 2020 – 31st March 2020 | 7.60% |
1st October 2019 – 31st December 2019 | 7.60% |
1st July 2019 – 30th September 2019 | 7.60% |
1st January 2019 – 31st March 2019 | 7.70% |
1st October 2018 – 31st December 2018 | 7.70% |
1st January 2018 – 30th September 2018 | 7.30% |
Documentation Required
- Identity Proof: Copy of government-issued ID such as Passport / Voter ID card / Driving License/Aadhaar, etc.
- Address Proof: Government-issued ID or recent utility bills.
- Photographs: Passport-size photographs
How to Open a POMIS Account
Opening a Post Office Monthly Income Scheme Account (MIS) is easy and hassle-free. However, to invest in the scheme, you need to have a Post Office Savings Account. After opening a savings account with the Post Office – if you did not already have one – you can adhere to the following POMIS Account Opening Procedure –
- Procure a POMIS Form from your nearest post office.
- Submit the form along with the following documents – a photocopy of ID proof, a photocopy of address proof, and 2 passport-sized photographs.
- Submit the originals for the documents mentioned above for verification purposes.
- Collate signatures of witnesses or beneficiaries.
You can invest the capital amount through a dated cheque. The date mentioned on the cheque will be considered as the account opening date. The interest earned on the investment will be disbursed one month from the opening date.
Post Office Monthly Income Scheme Calculator Formula
The formula to calculate the interest received from a post office monthly income scheme is a simple one. Here is how you can calculate the monthly interest on your investment in POMIS:
POIMS monthly interest = Amount Invested * Annual Rate of Interest/12
Let us have a close look at the above formula.
Here,
The amount invested is the amount deposited in the POMIS scheme by the individual. The annual rate of interest is the interest rate offered by the post office on your POMIS scheme. However, this interest rate can undoubtedly vary from time to time.
FAQs
Eligibility Criteria to Open a POMIS Account?
- 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.
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.
- If you already have an existing Post Office Monthly Income Scheme account and have not submitted your Aadhaar number, you need to do so within a period of 6 months with effect from 1st April 2023. Moreover, in case you have not submitted your PAN at the time of opening the account, you need to submit the same within a period of 2 months from the date of happening of any of the following events, whichever is earliest, namely:
– The balance at any given time in the account exceeds Rs. 50,000
– The aggregate of all credits in the account in any financial year is more than Rs. 1 lakh
– The aggregate of all withdrawals and transfers in a month from the account is more than Rs. 10,000
- If you fail to submit Aadhaar within the specified period of 6 months and PAN within the specified period of 2 months your account will become inoperational till the time Aadhaar number and/or PAN is submitted to the accounts office