Post Office Monthly Income Scheme is an option if you want to invest a specific amount and receive a fixed interest payment each month. As the name implies, you can get this from the post office that is closest to you. A small savings plan supported by the Indian government, the Post Office Monthly Income Scheme (POMIS) enables investors to save a predetermined sum each month. The investment is then augmented with interest at the relevant rate and credited to the depositor(s) every month. Read below to check the detailed information related to the Post Office Monthly Income Scheme.
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Post Office Monthly Income Scheme 2025
Under the direction of the Finance Ministry, the Post Office provides POMIS i.e., Post Office Monthly Income Scheme in addition to a variety of banking products and services. As a result, it is quite trustworthy. It produces consistent revenue and is a low-risk MIS. For those looking for a consistent source of income, it is the go-to option because it guarantees investors a monthly dividend. At the moment, the scheme offers an interest rate of 7.4% annually. Every quarter, the Union Government modifies these interest rates. Over five years, you may invest up to Rs. 9 lakh individually or Rs. 15 lakh collectively. Its main goal is to protect capital. The interest rate is 7.40% a year, payable every month, from April to June of 2025.
Features & Benefits of Post Office Monthly Income Scheme
Some of the key features and benefits of the Post Office Monthly Income Scheme are as follows:
- The Indian government supports the Post Office Monthly Income Scheme, which is a safe and well-liked investment choice.
- Due to the government’s backing of this program, your money is secure till maturity.
- Because it’s a fixed-income program, your investment is safe and not vulnerable to market fluctuations.
- The Post Office MIS has a five-year lock-in period. When the scheme matures, you have the option to reinvest or withdraw the invested sum.
- You can begin with a meagre Rs. 1,000 initial investment. You can invest multiples of this amount, based on your affordability.
- Each month, you receive revenue in the form of interest. While not outpacing inflation, the returns are greater than those of other fixed-income assets, such as FDs.
- Section 80C does not protect your investment, nor does TDS apply.
- It is possible to open many accounts under your name. However, the entire sum of the deposits combined cannot be more than Rs. 9 lakhs.
- The dividend will be sent to you one month after your first deposit, not at the start of each month.
- Two or three people can open a joint account. In this instance, the maximum total that can be invested in this account is Rs. 15 lakhs.
- The investor has the option to transfer the money to a recurring deposit (RD) account, a recent addition from Post Office.
- If the investor dies before the account’s term expires, the beneficiary—a family member—can be designated by the investor to receive the benefits and corpus.
- The monthly interest can be deposited into your savings account automatically, or you can pick it up immediately from the post office. Another profitable option in SIPs is to reinvest the interest.
- To keep receiving benefits, you can reinvest the corpus after maturity in the same scheme for an additional five years.
Eligibility Criteria for Post Office Monthly Income Scheme
The applicants applying for Post Office Monthly Income Scheme must fulfill the following eligibility criteria:
- A POMIS account can only be opened by an Indian resident.
- A minor who is ten years of age or older may have an account opened on their behalf by you. When kids become eighteen, they will be eligible to use the fund.
- NRIs are not eligible to receive this scheme’s advantages.
- A POMIS account can be opened by any adult.
- Once a minor reaches majority, he must seek to have the account converted to his name.
Required Documents for Post Office Monthly Income Scheme
Some of the important documents required for the Post Office Monthly Income Scheme are as follows:
- Passport-size photograph
- Identity Proof like Passport, Voter ID, Driving License, Aadhaar, etc
- Address Proof like Government ID or recent utility bills.
Post Office Monthly Income Scheme Interest Rate for Last 5 Years
| Time Interval | POMIS Interest Rate (Per Annum) |
| 1st January 2025 – 31st March 2025 | 7.40% |
| 1st October 2024 – 31st December 2025 | 7.40% |
| 1st April 2024 – 30th June 2024 | 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% |
Steps to Open a Post Office Monthly Income Scheme Account
- You need a Post Office savings account first. If you haven’t got one already, open the same account.
- Obtain an application from the postal service
- Complete the form and submit it at the post office with the self-attested copies of all the necessary paperwork. Note: For verification, you must have the original paperwork with you.
- Mention the nominees’ names, dates of birth, and mobile numbers (if applicable).
Proceed to deposit the initial funds (minimum Rs. 1000) via cheque or cash.
Post Office Monthly Income Scheme’s Early Withdrawal Penalty Rules
- Within the first year of the deposit, you are unable to withdraw the full amount.
- A penalty of 2% of the principal will be assessed if the account is closed during the first three years; the remaining balance will be credited to your account.
- A penalty of 1% of the principal will be assessed if the account is closed within 4 to 5 years; the remaining balance will then be transferred to your account.
Post Office Monthly Income Scheme’s Working
- Investors must make the right investments after opening the account.
- The lowest investment for a single account is Rs. 1,000, and the maximum investment is Rs. 9, 00,000.
- The minimum investment for a joint account is Rs. 1,000, while the maximum investment is Rs. 15, 00,000.
FAQ’s
Yes, you can transfer your account for free from one post office to another.
Yes, you can designate a nominee for the account who would receive the accrued funds in the event of your untimely death.
The withdrawal form is available for download on the India Post website or can be picked up in person at the post office.