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Post Office Monthly Income Scheme (POMIS)

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Created on
November 22, 2023


What’s Inside

An Overview

When it comes to safe and steady investments, the Post Office Monthly Income Scheme (POMIS) stands out as a popular choice among Indians. It is an administration-backed savings scheme that provides a fixed monthly income to investors. Whether you're a regular investor or a senior citizen looking for a secure investment avenue, POMIS provides a reliable option.

Understanding Post Office Monthly Income Scheme (POMIS)

What is the Post Office Monthly Income Scheme (POMIS)? 

It is a savings scheme offered by India Post, allowing individuals to invest a lump sum amount and receive fixed monthly payouts. It operates under the authority of the Indian government, assuring safety and reliability.

What is the Eligibility of POMIS?

Anyone above 18 years of age can invest in POMIS. Additionally, joint accounts can be opened, and even minors can invest through guardians.

What is the Investment Limit and Duration for POMIS? 

Investors can deposit a minimum of Rs. 1,500 and a maximum of Rs. 4.5 lakh individually or Rs. 9 lakh jointly in a POMIS account. The scheme has a fixed duration of 5 years.

Interest Rates for POMIS

The interest rates for POMIS are set by the government and are subject to change. As of the latest available information, the interest rate is around 6.6% per annum, payable monthly.

Tax Implications of POMIS

Interest earned through POMIS is taxable. However, there's no tax deduction at source (TDS) on the interest earned.

Post Office Monthly Income Scheme for Senior Citizens

  • Benefits for Senior Citizens: POMIS is especially advantageous for senior citizens seeking regular income without taking significant risks. It provides a guaranteed monthly payout, ensuring financial stability during retirement.
  • Higher Interest Rates for Senior Citizens: Senior citizens typically receive higher interest rates on POMIS investments. As per the current regulations, they might enjoy a slightly higher interest rate than regular investors.
  • Security and Reliability: One of the primary reasons senior citizens prefer POMIS is its administration-backed security. The reliability of payouts makes it a preferred choice among retirees.

Understanding Post Office Monthly Income Scheme Calculator

A POMIS calculator is a handy tool available online that helps investors estimate their returns. It takes into account the invested amount, interest rate, and tenure to calculate the monthly income.

The POMIS Caclulator 

How to Use a POMIS Calculator

To calculate the monthly income using the POMIS calculator, input the principal amount, interest rate, and duration of investment. The calculator then generates the estimated monthly income.

Importance of POMIS Calculator

The POMIS calculator assists investors in planning their finances better by providing an approximate idea of the monthly income they can expect from their investments.

How to Invest in Post Office Monthly Income Scheme

  • Opening a POMIS Account: To invest in POMIS, visit the nearest post office and fill out the application form. Submit the necessary documents like identity proof, address proof, and photographs along with the initial deposit amount.
  • Account Types: POMIS accounts can be opened individually or jointly. Joint accounts require all account holders to be present during the account opening process.
  • Mode of Payment: Investors can deposit the amount through cash or cheque at the post office while opening the account or during subsequent monthly payments.
  • Nomination Facility: Nomination facilities are available in POMIS accounts, allowing investors to nominate a person who will receive the investment amount in case of the investor's demise.

Wrapping Up

The Post Office Monthly Income Scheme serves as a reliable avenue for individuals especially senior citizens to secure a fixed monthly income. Its government-backed nature, coupled with consistent payouts, makes it a preferred choice for risk-averse investors. Utilising tools like the POMIS calculator can aid in better financial planning and estimation of returns. For those seeking stability and regular income, POMIS remains a cornerstone in the realm of secure investments.

Diversify Your Investments via Fi 

While your POMIS corpus may be a good place to start saving up for retirement, you also need to diversify your portfolio with other assets to meet different life goals. Users can find several investment options on the Fi app. Be it short-term or long-term — it's easy to invest with a simple swipe of your phone's screen. Fi also offers a Peer-to-Peer investment feature called Jump! Jump can help you earn up to 9% p.a on your investment. But if you want to save up for a short-term goal & earn interest on it, select our super-flexible Smart Deposit. If you're looking for higher/stable returns, opt for a Fixed Deposit.

Frequently Asked Questions (FAQs)

1. What is the Post Office Monthly Income Scheme (POMIS), and how does it work?

POMIS is a savings scheme offered by the Indian postal service. It allows investors to deposit a lump sum amount and receive a fixed monthly income in the form of interest payments.

2. What is the maximum and minimum investment allowed in the Post Office Monthly Income Scheme?

The maximum investment limit for a single account is ₹4.5 lakhs for an individual and ₹9 lakhs for joint accounts while the minimum investment allowed in POMIS is ₹1,500.

3. What is the interest rate currently offered by the Post Office Monthly Income Scheme, and how often are these rates revised?

The interest rate for POMIS is subject to change and is declared by the government. As of my last update, the interest rate was around 6.6% per annum, payable monthly. These rates can be revised quarterly.

4. Are the returns from POMIS taxable, and if so, what is the tax treatment on the interest earned?

The interest earned through POMIS is taxable. It's added to the investor's income and taxed at the individual's applicable income tax slab rate. However, there's no TDS (Tax Deducted at Source) on the interest earned.

5. What is the maturity period of the Post Office Monthly Income Scheme, and can investors withdraw their funds before maturity?

The maturity period for POMIS is 5 years. Premature withdrawals are allowed after one year, but with certain penalties and restrictions. If withdrawn between 1 year to 3 years, a deduction of 2% of the deposit amount is levied. If withdrawn after 3 years but before maturity, a deduction of 1% of the deposit amount is charged.


Investment and securities are subject to market risks. Please read all the related documents carefully before investing. The contents of this article are for informational purposes only, and not to be taken as a recommendation to buy or sell securities, mutual funds, or any other financial products.
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