Post Office Monthly Income Scheme (POMIS) is a scheme where you invest a certain amount and earn a fixed interest every month i.e., 7.40% per annum. As the name suggests, you can invest in this from any post office. It is a secured investment scheme that attracts individuals who do not prefer high-risk investment avenues.
In this article, we will discuss everything one needs to know about POMIS in detail.
Post Office offers POMIS among a host of banking products and services, under the purview of the Finance Ministry. Hence, it is highly reliable. It is a low-risk monthly interest scheme(MIS) and generates a steady income. POMIS is a secured government-backed savings plan providing a steady income. It is viewed as a low-risk investment option.
You can invest up to Rs. 9 lakh individually or Rs.15 lakh jointly, and the investment period is 5 years. Capital protection is its primary objective. The interest rate for FY 2025-26 is 7.40% per annum which is payable monthly.
For instance, Mr. Sharma has invested Rs.9 lakh in the post office monthly investment scheme for 5 years. As mentioned above, the interest rate is 7.40% p.a. His monthly interest will be Rs.5,550 for that period. Post-maturity, he can withdraw his deposit, Rs.9 lakh, along with the accumulated interest either from any post office or get it transferred to his savings account via Electronic Clearance Service (ECS). Alternatively, the account can be renewed.
Account Type | Maximum Deposit Amount Allowed |
Single Account | Rs. 9 lakhs |
Joint Account (2 or 3 adults) | Rs. 15 lakhs |
In a joint account, all the joint holders shall have equal share in investment. Limits for accounts opened on behalf of a minor as guardian shall be separate. Deposits/shares in all MIS accounts opened by an individual shall not exceed Rs.9 lakh.
POMIS has the flexibility and reliability that appeal to investors exploring investment avenues with low risk with a fixed income flow. However with limited tax benefits. If you think, you belong to that category, now is the time to consider starting one.
Opening a POMIS account is not as tedious as you think. Instead of imagining long queues and even longer paperwork, please take a look at the step-by-step procedure.
Time of POMIS withdrawal | Outcomes of premature withdrawal |
Before completing one year | Zero benefits |
Between 1st and 3rd year | The entire deposit refunded after deducting a 2% penalty |
Between 3rd and 5th year | Entire corpus refunded with 1% penalty |
Note: Account can be prematurely closed by submitting prescribed application form with pass book at concerned Post Office.
Feature | POMIS (Post Office Monthly Income Scheme) | Monthly Income Mutual Fund | Monthly Income Insurance Plan |
Returns | Assured income at 7.40% p.a. (as of current rates) | Market-linked; typically 20:80 equity-debt mix — no guaranteed income | Monthly annuity; rates vary based on premium, age, and tenure |
TDS | TDS applicable as per interest income rules | TDS applicable on dividends or gains | Annuity income is taxable |
Return Nature | Fixed and guaranteed | Floating; varies with market performance | NA (depends on insurer’s payout structure) |
Risk Level | Low-risk, ideal for risk-averse investors | Moderate to high risk (market dependent) | Low to moderate risk, but with long lock-in |
Liquidity / Withdrawal | Allowed after 12 months with a penalty | Exit load applicable if withdrawn early | High surrender charges; not ideal for early exit |
Investment Limits | ₹9 lakhs per individual, ₹15 lakhs for joint account | No upper limit | No upper limit |
Additional Benefits | Stable income | Potential for capital appreciation | Life insurance coverage along with income |
The Post Office Monthly Income Scheme (POMIS) provides interest at the rate of 7.4% per annum which is paid monthly for 2025-26.
The following table gives the historical data of the POMIS interest rate:
Time Interval | POMIS Interest Rate (Per Annum) |
1st April 2025 - 30th June 2025 | 7.40% |
1st April 2024 - 31st March 2025 | 7.40% |
1st January 2024 - 31st March 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% |
For the individuals above the age of 60 years old, i.e, senior citizens can take advantage of the post office savings scheme and less worry at retirement. Post Office provides Senior Citizens Savings Scheme (SCSS) provides stable retirement benefit while availing tax benefits under section 80C, the interest paid on SCSS is at 8.2% per annum and the minimum deposit is Rs 1,000 and maximum of Rs.30 lakh.
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