POMIS

Post Office Monthly Income Scheme

Post Office Monthly Income Scheme (POMIS) provides individuals with a secure investment opportunity, offering a competitive interest rate of 6.6%, paid out monthly. Eligible participants must be Indian citizens aged 18 and above, or can open an account for minors aged 10 and older, with a minimum investment of ₹1500.

Central Cash

States / UT: All India

Ministry / nodal: Ministry Of Finance

Nodal department: Department of Financial Service

Scheme for: Individual

Scheme profile

DBT (direct benefit transfer): No

Categories: Banking,Financial Services and Insurance

Sub-categories: Investment

Target beneficiaries: Individual

Tags: Investment

Details

Post Office Monthly Income Scheme (POMIS) is an investment scheme recognized and validated by the Ministry of Finance. It is one of the highest-earning schemes with an interest rate of 6.6%. The interest in this scheme is disbursed monthly. After opening a POMIS account, individuals can invest a suitable amount based on affordability, which, however, should not be less than ₹1500. It provides low risk and steady income where an investor can deposit every month and get interested of MIS in the post office according to their applicable monthly rate. The income on investment is given by the concerned post office every month.

Features of the POMIS scheme:

  1. Maturity period- The maximum tenure of the Indian post office monthly income scheme is 5 years.
  2. Number of holders- At least 1 and at most 3 individuals can hold post office MIS.
  3. Nomination- Only the nominee will get all scheme benefits after the investor’s demise. Nominee can be assigned later on after opening an account.
  4. Transfer- Individuals can transfer their MIS account in one post office to another anywhere in India.
  5. POMIS bonus- Accounts opened after 1st Dec 2011 have no bonus facility. However, those opened before that enjoy a 5% bonus.
  6. Taxability- Any income from this scheme does not come under TDS or tax deduction. The post office monthly income scheme tax benefit is zero.

Benefits

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  • "children": [ { "text": "Benefits:"
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  • [ { "children": [ { "text": "Capital Protection- As the Government backs it the return is safe." } ] }
  • { "children": [ { "text": "Low-risk Investment- Post office monthly income schemes online have no risk involved in market capitalization." } ] }
  • { "children": [ { "text": "Lock-in Period- A minimum of 5 years is the lock-in period which can be withdrawn after maturity." } ] }
  • { "children": [ { "text": "Affordable Premium Amount- The premium per month is low compared to other schemes and easily payable." } ] }
  • { "children": [ { "text": "Unbeatable by Inflation- Even during inflation an investor can get income monthly." } ] }
  • { "children": [ { "text": "Multiple Fund Owners- Multiple owners can own one account as joint holders." } ] }
  • { "children": [ { "text": "Ease of Transaction- The transaction of money

Benefits:

Capital Protection- As the Government backs it, the return is safe.

Low-risk Investment- Post office monthly income schemes online have no risk involved in market capitalization.

Lock-in Period- A minimum of 5 years is the lock-in period which can be withdrawn after maturity.

Affordable Premium Amount- The premium per month is low compared to other schemes and easily payable.

Unbeatable by Inflation- Even during inflation, an investor can get income monthly.

Multiple Fund Owners- Multiple owners can own one account as joint holders.

Ease of Transaction- The transaction of money, including deposits, and withdrawal is very easy.

Good for Risk-averse Investors- Post Office Monthly Income Scheme is the best scheme for risk-averse investors who wants monthly income. It is favorable for those looking for long-term investment and regular income. For senior citizens, it is the best plan.

Current Interest Rates:

Duration (in Years): 1, Interest Rate: 5.50%

Duration (in Years): 2, Interest Rate: 5.50%

Duration (in Years): 3, Interest Rate: 5.50%

Duration (in Years): 5, Interest Rate: 7.6%

Details of Investment:

Single Account - the minimum amount to deposit is ₹ 1500 and the maximum is ₹ 4,50,00.

Joint Account – the minimum amount of investment is ₹ 1500 and the maximum is ₹ 9,00,000.

Minor Account - the minimum amount of investment is ₹ 1500 and the maximum is ₹ 3,00,000.

Maximum Investment Limit:

Single Account: ₹4,50,000; Joint Account: ₹9,00,000; Minor Account: ₹3,00,000

Notes:

For instance, if an investor invests ₹ 1,00,000 for 5 years with a monthly interest of 6.60%. Fixed monthly income according to the post office MIS scheme will be ₹ 550.

The post office monthly income scheme for senior citizens is 6.6%.

The minimum lock-in period for the post office monthly income scheme 2021 is 5 years.

Eligibility

  1. The applicant must be a citizen of India.
  2. The applicant must be residing in India.
  3. The applicant should be at least 18 years old.

Note: 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.

Application Process

Offline

To open an account under Post Office Monthly Income Scheme, follow the steps given below-

First, you must have a Post Office savings account. Open the same account if you do not have one

Get an application form from your Post Office or download the POMIS Account application form from the following link: https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/Accountopening.pdf

Fill and submit the form along with the self-attested copies of all the required documents at the post office. You must carry the original documents for verification.

Mention the Name, DOB, and Mobile no. of the nominees (if any)

Proceed to make initial deposits (Minimum Rs.1000/-) via cash or cheque

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

How Can I Withdraw Money From My POMIS Account After The Tenure?
You can withdraw the deposited amount from the account either from the post office or you can also get it credited in your savings account through ECS. You can follow the usual way and withdraw the amount monthly. However, the investor is allowed to let some amount accumulate and withdraw it all together after a few months.
Can I Transfer POMIS Account?
Yes, your account can be transferred from one post office to another for absolutely free.
Can I Reinvest My Accumulated Amount In POMIS?
This is one of the best features of this scheme. It allows the investors to reinvest their accumulated money at the end of the tenure.
Is There Any Tax Deduction At Source?
No, there is no TDS (Tax Deduction at Source). But, the interests earned are taxable.
Is There Any Nomination Facility Available In POMIS?
Yes, the scheme allows you to select and appoint a nominee against the account who will get the accumulated amount in case of unfortunate demise.
Does The Scheme Offer Tax Rebate?
No, POMIS does not offer any tax benefits under Section 80C of the Income Tax Act, 1961.
Can A Senior Citizen Also Invest In POMIS?
Yes, infact POMIS is most suitable for senior citizens and retired persons.
From Where Can I Get The Withdrawal Form Of POMIS?
You can get the withdrawal form directly from the post office or download it from the India Post website.
What Happens When The Investor Does Not Withdraw The Funds After 5 Years?
After the maturity of 5 years, if the investor does not withdraw the amount, then he will continue to earn a simple interest for up to 2 years (as per the post office savings account interest rate).

References

Apply

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Opens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.

Documents Required for Government Schemes

Most government schemes require basic documents for verification. While the exact requirements vary, common documents include:

  • Aadhaar Card
  • Income Certificate
  • Caste Certificate (if applicable)
  • Residence Proof
  • Bank Account Details
  • Educational Certificates (for student schemes)

How to Apply for Government Schemes?

The application process for government schemes may be online or offline depending on the scheme. In most cases, you can follow these steps:

  1. Check eligibility criteria
  2. Collect required documents
  3. Fill the application form
  4. Submit the application online or at the relevant office
  5. Track application status