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Securing your future with POMIS: A deep dive into benefits and eligibility

In an era where financial security and smart investment options are sought after, the post office monthly income scheme (POMIS) stands out as a beacon of reliability. This government-backed scheme not only promises capital protection but also ensures a steady flow of income, making it an attractive choice for investors. 

Whether planning for retirement, looking to generate a regular income stream, or simply wanting to grow savings, POMIS could be the financial ally one has been searching for. Dive into the intricacies of this scheme and explore why it could be the perfect fit for any investment portfolio.

What is post office monthly income scheme?

One investment opportunity provided by the Indian Postal Service is the POMIS, which offers a fixed-income stream. Under POMIS, an individual invests some amount and in return, receives an assured monthly income in the form of interest. 

The investment is safe because the scheme is under the jurisdiction of the Indian Ministry of Communications and IT. The scheme’s primary appeal lies in its low-risk nature, as it is not subject to market risks, unlike other investment options. Therefore, POMIS is a good option for investors who want a steady return but are wary of taking risks.

Post office monthly income scheme eligibility

  • Investors in POMIS must be citizens of India; participation is not open to NRIs.
  • Anyone over the age of ten is eligible to invest in a personal capacity.
  • Customers can choose to sign up alone or in groups of up to three.

How to invest in post office monthly income scheme?

An attractive investment opportunity in India is the Post Office Monthly Income Scheme (MIS), which provides capital for five years. Beginning on the opening date and continuing until maturity, the post office’s monthly income scheme interest rate is 7.4% per annum. The scheme has a tenure of 5 years, and the interest settles when a month has passed from the opening date and continues up to maturity. The minimum investment limit is ₹ 1,000, and they can be made in multiples of ₹ 1,000.

The maximum amount that can be invested in a single account is ₹9 lakh, while in a joint account it is ₹15 lakh. Everyone who has a stake in an investment through a joint account does so on a proportional basis. The maximum amount of ₹9 lakh is inclusive of their portion in joint accounts.  

The scheme permits early closure after a year with some deductions. At maturity, the account can be closed by submitting an application and passbook at the Post Office. It is possible to close the account and return the funds, plus interest, to the designated beneficiary or legal heirs if the account holder dies before the account matures.

Benefits of POMIS

The Post Office Monthly Income Scheme (POMIS) offers several benefits that make it an attractive investment option:

Capital protection: Your investment is guaranteed to be safe because the scheme has the backing of the Government of India.

Steady monthly income: It offers a steady monthly income, that is particularly beneficial for retirees or those seeking a regular income.

Low-risk investment: POMIS is a low-risk investment, not subject to market risks.

Affordability: With a minimum investment of just ₹1,000, it is an affordable option.

Moreover, the post office’s monthly income scheme for senior citizens is particularly beneficial. The senior citizens have the option to invest a lump sum amount in the scheme, individually or jointly. The scheme then provides them with a regular monthly income, which can be a great support during their retirement years. 

Additionally, the scheme offers tax benefits, making it a financially sound choice. Interest income from POMIS is exempt from Tax Deducted at Source (TDS), which is a major perk. However, keep in mind that any interest you earn from your POMIS funds is subject to taxes. The tax is applicable only if the interest income exceeds ₹40,000 per annum (₹50,000 in the case of senior citizens).

Thus, POMIS serves as a reliable and beneficial investment avenue for senior citizens, providing them with financial stability and peace of mind

How to apply?

The first step is to pick up an application for POMIS at your local post office. Make sure you fill out the form completely and include any supporting documents, like an ID and proof of address, that are needed. Additionally, two passport-size images of the applicant are needed. You can make the first payment after you submit and have all of the paperwork checked. You have a few options: cash, cheque, or demand draft. The POMIS account will be activated once you complete these steps.


In the vast ocean of investment options, the post office monthly income scheme emerges as a lighthouse for those seeking a safe harbour. It’s a scheme that doesn’t just promise but delivers – a steady income, capital protection, and peace of mind. Whether you’re a retiree seeking a regular income or an investor looking for a low-risk avenue, POMIS could be your ticket to financial stability. Then why postpone? Enter the fantastical realm of POMIS and let your money work for you!


What is the rate of interest for PPF and MIS?

The Post Office Public Provident Fund (PPF) offers an interest rate of 8% per annum, compounded yearly, making it an attractive option for long-term savings. Conversely, the interest rate for POMIS is 7.4% which is beneficial for those seeking a steady income flow.

Is MIS interest rate fixed for 5 years?

Yes, the interest rate of the Post Office Monthly Income Scheme (POMIS) is fixed for the tenure of 5 years. However, the rate is revised quarterly by the government, so the rate at the time of investment applies for the entire period.

Which is the best scheme in post office?

The Post Office offers several schemes. The best scheme will depend on the individual’s desired investment period and expected returns.
The Monthly Income Scheme (POMIS) provides a 7.4% annual interest rate. 
The National Savings Recurring Deposit allows small investments with a 5.8% interest rate. 
The Time Deposit Account offers interest rates from 5.5% to 6.7% based on the tenure.

Is MIS interest tax-free?

No, the interest earned on the Post Office Monthly Income Scheme (POMIS) is not tax-free. It’s subject to taxation as per the individual’s tax slab and does not have benefits like 80C deductions. However, MIS interest has no tax deductions at source (TDS).

Which is better MIS or FD?

Both Monthly Income Schemes (MIS) and Fixed Deposit (FD) have their advantages. MIS provides a regular monthly income, ideal for those needing a steady cash flow. FDs offer a lump-sum amount at maturity, ensuring low risk and fixed returns. The choice depends on your financial goals and risk tolerance.

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