Post Office monthly income scheme (POMIS)

At present, there are many schemes in the post office, where there is a process to earn more interest again in less time. One of them is the subject of discussion in this article.

Post Office Monthly Scheme

Post Office Monthly Income Scheme (POMIS) is one of the notable schemes. That can use to earn more interest in a short time. It is a reliable scheme, and the Ministry of Finance of the Indian govtement fixing the interest rate. Because of this, it provides a less risky and stable income.


Interest rates are announcing every quarter of the financial year. Its return depends on the return on government bonds invested over the term of the monthly income scheme. At present, the interest payable in POMIS is 6.60 per cent. This scheme is regulating by the government, so it is a reliable scheme.


Features and benefits of Post Office Monthly Income Scheme

Secure Investment: A fixed income project. Income can be earned in the form of interest every month. Market fluctuations are not linking to this scheme, so the scheme is quite secure.

Scheme Duration: POMIS Period 5 years. On the expiration of the monthly scheme. You can withdraw the money invested when the scheme matures. If not, interest will continue to accrue on that account for up to 2 years.

Capital Protection: Indian Post Office is a trusted institution for financial transactions. It is regulating by the Ministry of Finance Government of India. So the money invested is protected.

Short Deposit: An arrangement to launch a scheme through a small investment. The benefit of the scheme is avail with only 1000 rupees.

Ease of transaction: There is a system of receiving monthly interest directly from the post office and the investor can take easy advantage of auto transfer if he wants. That is, the interest money will be a credit to the depositor’s savings account every month through the electronic clearing system.

Advantages of multiple accounts: If the depositor wants, he/she can open more than one account in his name. But in this case, the total deposit amount cannot be more than rupees 4.5 lakh.

Joint account: The depositors can open a joint account if they want. In this case, no more than Rs 9 lakh can be invested in this account. And they hold an equal share in the joint account.

Tax-efficiency: POMIS is taxable at a marginal rate. under Section 80C of the Investment Act. TDS is also not applicable.

Nominated: Investors can take advantage of being nominated.

Transferable: It’s easy to transfer from one branch to another branch.


  • Only Indian citizens can be a POMIS account.
  • Eligible for opening an account minimum 10 years and above.
  • NRIs cannot avail of this scheme.

Pre-mature withdrawal: There is an advantage of premature withdrawal after one year. If the deposit is withdrawn before 3 years. In that case, the entire deposit is refunded after deducting the 2% penalty. If the deposit is withdrawn before 5 years. In that case, the entire deposit is refunded after deducting a 1% penalty.


This scheme is a favorable scheme for senior citizens as they can deposit their savings in the account and earn monthly interest from it. Moreover, the Indian Post Office is a reliable institution so there is no fear of losing deposits.






By Ayan

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