List of Topic Covered
What is Post Office Monthly Income Scheme (POMIS) Account?
POMIS provides you safe investment with attractive returns. It’s a 5 years investment scheme which provides guaranteed returns at an interest rate of 6.6% annually. You receive the interest amount monthly in the form of pension. This plan is specifically for senior citizens and retired people whose monthly income has stopped.
| Account name | Post office Monthly Income Scheme Account |
| Interest rate | 6.6 % |
| Type of account | Monthly Income Scheme |
| Start date | 15-08-1987 |
Features in Post Office Monthly Income Scheme
- Post Office Monthly Income Scheme is a secure savings option to safeguard your money and get good returns on it.
- This scheme is popular in rural areas but now urban people also have started taking interest in POMIS.
- Maturity period for POMIS scheme is 5 years from the account opening date.
- Any single adult or 3 adults jointly can open a Post Office Monthly Income Scheme account.
- More than one account can be opened by an individual on his or her name but the investment in all the account should not exceed 4.5 Lakhs
- Parents or Guardians can open an account on behalf of a minor. Once they complete 18 years of age, they can convert their minor account to adult account.
- Minors above the age of 10 years or more can operate their accounts.
- Interest earned is taxable. However TDS deductions will not happen.
Benefits of Post Office Monthly Income Scheme
- Your capital is protected and earns you a fixed monthly payout.
- There is a lock in period of 5 years on your investment
- You can start with very affordable nominal amount of Rs. 1000
- You get better returns than FD
- TDS is not applicable in POMIS.
- You will start receiving payouts in the very next month of your investment.
- Investors can move their interest earned to a recurring deposit for more returns. (New feature by Post Office)
- Nomination facility is available in this scheme.
- You can reinvest the money in the same scheme after maturity.
Eligibility Conditions in Post Office Monthly Income Scheme
| Minimum Age to Open an Account | 10 Years |
| Maximum People in Join Account | 3 People |
| Minimum Deposit | Rs. 1000 |
| Maximum Deposit (Single Account) | Rs. 4,50,000 |
| Maximum Deposit (Joint Account) | Rs. 9,00,000 |
| Maturity Period | 5 years |
Post Office Monthly Income Scheme (POMIS) Interest Rates History
| Date (From) | To (Date) | Interest Rate |
| 01-04-2020 | 30-09-2020 | 6.60 |
| 01-01-2020 | 31-03-2020 | 7.60 |
| 01-10-2019 | 31-12-2019 | 7.60 |
| 01-07-2019 | 30-09-2019 | 7.60 |
How Post Office Monthly Income Scheme (POMIS) works
Suppose Ram invests in the POMIS Account with following details.
Amount : Rs. 1,00,000
Maturity period : 5 years
Interest rate (Annual) : 6.6%
- Now it’s very simple that from next month Ram will start getting Rs. 550 every month till 5 years. At the time of Maturity he will get the invested amount i.e. Rs. 1,00,000 back.
- Ram can move his interest earned to a recurring deposit for more returns. (New feature by Post Office)
- After Maturity, money can be withdrawn in two ways – Either Ram will get it directly from the post office or get it credited to his savings account (ECS).
- Also Ram has an option to reinvest the money again for 5 years.
Post Office Monthly Income Scheme Withdrawals or closure
Account holders can withdraw the deposited amount at some costs given below.
| POMIS Withdrawal Period | Premature Withdrawal Amount |
| Before 1 year | 0 benefit |
| 1st year – 3rd year | Entire Capital refunded with deduction of 2% penalty |
| 3rd year – 5th year | Entire Capital refunded with deduction of 1% penalty |
- To open a POMIS account, you just have to follow some simple steps given below.
- You just have to open a savings account in the post office (single or joint). Which requires minimal documentation.
- Collect the POMIS application form from the post office.
- You can also download the POMIS form from the official website of India Post.
- Fill up the form with accurate information.
- Attach all the necessary documents with form which includes your passport size photograph as well.
- Fill in the nominee details.
- Then go to the post office and deposit the amount via cash or cheque.
- And that’s all. your account will get opened and you will be provided with the details.
Documents Required to Open Account in Post Office Monthly Income Scheme
You will have to deposit below documents to open your post office savings account.
- ID Proof
- Electoral card
- Aadhar card
- ration card
- Passport
- driving license
- Identity Card from University / Education board / College / School identity
- Identity Card from Central or State Government
- Identity Card from PSU
Address Proof
- Bank or post office passbook statement with current address
- Passport
- Ration card with current address
- Electricity bill
- Telephone bill not more than 3 months old
- Salary slip with current address
- Aadhar card
Two recent passport size photos. If your account is a joint account then photographs of all joint account holders is to be provided.
Click here to read about Post Office Savings Account in details
I hope this helps you to understand Post Office Monthly Income Scheme really well. If you have any question about POMIS, please comment below and we will get back to you immediately.