Post Office Monthly Income Scheme
Post Office Monthly
Income Scheme
Income Scheme
The Post Office Monthly Income Scheme is a low-risk savings scheme that helps you plan for your future financial needs. It offers a steady source of monthly income and can be used to save for a number of goals. Let’s explore how it works.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme is a government-backed savings plan offered by India Post. Under this scheme, you invest a certain amount of money and earn a fixed interest every month, which is credited to you as a regular income. The Post Office Monthly Income Scheme's latest interest rate is 7.4% as of FY 2025-26. The scheme can be opened individually or jointly by up to 3 people.
For example, if you invest ₹ 5 lakh in the scheme at the prevailing interest rate of 7.4% per annum, you could earn approximately ₹ 3,083 per month as income. The maturity period is typically 5 years for this scheme. So, you will be earning monthly income for 5 years and at maturity, you get your principal (₹ 5 lakh) back.
What are the key features of the POMIS Scheme?
Below are some features of the Post Office Monthly Income Scheme:
Maximum limit
The maximum investment limit for a single account is ₹ 9 lakh, while for a joint account it is ₹ 15 lakh.
Lock-in duration and early withdrawal
The scheme has a lock-in period of 5 years. Early withdrawals are allowed. However, these come with penalties. If you withdraw the corpus before completing a year, there are no benefits. If you withdraw it between the 1st and 3rd year, the entire deposit is refunded after deducting 2% of the total deposit as a penalty. If you withdraw the corpus between the 3rd and 5th year, the entire withdrawal is refunded after deducting 1% of the total deposit as a penalty.
Transfer facility
You can transfer your Post Office Monthly Income Scheme account from one post office to another anywhere in India without losing benefits.
Guaranteed returns plan
The Post Office Monthly Income Scheme provides guaranteed returns with no risk of capital loss, making it a safe investment choice.
Maturity benefits
The Post Office Monthly Income Scheme provides guaranteed returns with no risk of capital loss, making it a safe investment choice.
Joint account option
You can open a joint account with up to 2 or 3 individuals and invest in the scheme together.
Minor account option
An account can be opened on behalf of a minor aged 10 years or above. The minor can claim the funds when they turn 18 years old.
What are the eligibility criteria for POMIS?
The Post Office Monthly Income Scheme can be availed by the following:
- Indian citizens and NRIs: Both resident Indians and Non-Resident Indians are eligible to open an account
- Adults: Individuals of legal age can open an account in their own name
- Accounts for minors: Adults can open an account on behalf of children aged 10 years and above
What documents are required to subscribe to the Post Office Monthly Income Scheme?
To open a Post Office Monthly Income Scheme (POMIS) account, you need to submit the following documents:
- Proof of identity: A government-issued ID such as a Passport, Voter ID, Driving License, Aadhaar card, and so on
- Proof of address: Any government-issued ID, such as a Passport, Voter ID, Driving License, Aadhaar card or utility bills
- Photographs: Recent passport-size photographs as per the post office requirements
What is the current and historic interest rate chart for the Post Office Monthly Income Scheme?
The Post Office Monthly Income Scheme's latest interest rate is 7.4% as of FY 2025-26.
Historic interest rates
| Period | Post Office Monthly Income Scheme latest interest rate |
|---|---|
| October 1, 2022 – December 31, 2022 | 6.7% |
| January 1, 2023 – March 31, 2023 | 7.1% |
| April 1, 2023 – June 30, 2023 | 7.4% |
| July 1, 2023 - Present | 7.4% |
Conclusion
The Post Office Monthly Income Scheme is a low-risk savings option suitable for retirement planning, children’s future needs and other financial goals. It provides a steady monthly income and can help you plan your future finances.
COMP/DOC/Dec/2025/1712/1669
Frequently Asked Questions – POMIS
1. What is the minimum deposit needed to open the post office monthly income scheme?
A Post Office Monthly Income Scheme account can be opened with a minimum deposit of ₹ 1,000.
2. How can a nominee or legal heir obtain the funds of a deceased investor?
In case of the investor’s death, the nominee or legal heir can apply for a death claim settlement at the post office. This can be done even if the lock-in period is not yet complete.
3. Can a single account be changed to a joint account?
Yes, a single account can be converted into a joint account.
4. Is there a risk in the post office's monthly income scheme?
No, the Post Office Monthly Income Scheme is a low-risk investment scheme that offers an assured return and is backed by the government.
