Who is eligible for the scheme?

Any Indian resident over 10 years old can open an account, including minors under guardianship.

What is the minimum and maximum deposit?

The minimum deposit is ₹1,500, while the maximum limit for a single account is ₹4.5 lakh (or ₹9 lakh for joint accounts).

How to apply for the Post Office MIS?

Visit any post office, fill out the MIS application form, and submit required documents (ID proof, address proof).

What is the interest rate for this investment scheme?

Interest rates are revised quarterly by the government, with monthly payouts available to account holders.

Is there a penalty for early withdrawal?

Yes, a penalty applies if funds are withdrawn before five years.

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Post Office Monthly Income Scheme: Application, Eligibility, & More

Pragya Pathak

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Updated: 28-01-2025 at 7:12 AM

Post Office Monthly Income Scheme: Application, Eligibility, & More

All of us are consistently looking for security and safety and one of the ways of ensuring the same is financial security that would help us throughout our life. The government of India has launched several saving schemes for the very same thing and one of those schemes is the Post Office Monthly Income Scheme (POMIS).

The Post Office Monthly Income Scheme (POMIS) was launched especially for senior citizens so that they can continue receiving a fixed amount of money every month to lead a tension-free life concerning money.

Name of the scheme	POMIS
Full form	Post Office Monthly Income Scheme
Launched by	Government of India
Launched in	1987
Objective	To provide a stable monthly income to people who invest in it
Minimum investment	Rs. 1500 for individual account holders and Rs. 1000 for joint account holders
Maximum investment	Rs. 9 lakhs for individual account holders and Rs. 15 lakhs for joint account holders
Interest rate	7.4% p.a.
Application mode	Offline

What Is The Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme (POMIS) was launched by the government of India to provide a reliable monthly income to investors who invest under the govt scheme. Through POMIS, interested individuals need to invest a lump-sum amount for a fixed period of 5 years after which they’ll receive monthly interest payments. The government scheme has a set deposit of a minimum and maximum amount based on the type of account one would be opting for.

The saving scheme is best suited for people looking for safe and traditional ways of investing without market risks.

Features

There are several features of the Post Office Monthly Income Scheme which outline its goals. Some of the key features are:

Fixed time: The investment period is 5 years which aims to offer stability to the investor.
Monthly payments: The govt scheme provides monthly interest payments which are released directly into the investors’ bank accounts.
Account options: People can choose between individual and joint accounts as per their needs.
Premature withdrawal: Under POMIS, people can apply for premature withdrawals which would be released only after deducting some penalties.
Taxable interest: The interest earned on the investment made under POMIS is completely taxable under Section 80C of the Income Tax Act.

Benefits

There are many benefits of the Post Office Monthly Income Scheme. Some of the major benefits are mentioned below, read it carefully and see how impressive this Sarkari Yojana is

Monthly income: The govt scheme provides a stable monthly income and helps secure the financial safety net.
Low-risk investment: POMIS doesn’t expose its investors to market risk and hence is a safe option for traditional people.
Fixed interest: As the interest rate is fixed on investments, people can exactly predict the amount of returns and hence invest mindfully.
Simple application: Interested individuals can apply for the govt scheme by visiting any post office.

Investment Details Of Post Office Monthly Income Scheme

Minimum investment (Individual account holders)	Rs. 1500
Minimum investment (Joint account holders)	Rs. 1000
Maximum investment (Individual account holders)	Rs. 9 lakhs
Maximum investment (Joint account holders)	Rs. 15 lakhs
Tenure	5 years
Rate of interest	7.4% per annum
Repayment frequency	Monthly Or On Maturity

Who Should Invest In Post Office Monthly Income Scheme?

POMIS is ideal for people who are looking for a stable monthly income, retired individuals, people who want to invest in low-risk saving schemes, and families or couples desiring a regular income.

Interest Rate Of POMIS 2024

As of 2024, the interest rate of POMIS is set as 7.4% per annum which is paid out monthly later to the investors.

Eligibility Criteria

Interested individuals first need to ensure whether they fit into the eligibility criteria or not for a smooth and hassle-free application process. The eligibility criteria are as follows

Must be a citizen of India.
Should be above the legal age.

Exclusion Criteria

Individuals who cannot apply for the Post Office Monthly Income Scheme. The exclusion criteria are as follows:

Non-resident Indians or foreigners cannot apply for the govt scheme.
There can be a maximum of 3 people in joint accounts.

Application Process

Interested and eligible people can apply for the government scheme by following the steps mentioned below. Make sure you follow each one carefully to avoid any last-moment hassle.

Step 1: Visit your nearest post office.
Step 2: Request for an application form for the Post Office Monthly Income Scheme.
Step 3: Fill in the required details.
Step 4: Submit the form there and wait for the approval.

Required Documents

Applicants need to submit some supporting documents with the application form. The list of documents is as follows, so keep all of these documents ready and up to date for a smooth application process

Identity proof
Address proof
PAN card
Passport-size photographs

Consequences For Early Withdrawal Of POMIS

If for some reason, investors decide to opt for premature withdrawal, they’d need to face two main consequences:

A penalty deduction of 2% from the amount deposited.
Account holders won’t be entitled to any interest for the period till the account is kept.

POMIS For Senior Citizens

The Post Office Monthly Income Scheme for senior citizens is considered an appealing option because of its features such as monthly returns and low vulnerability to market risks.

Also Read: National Pension Scheme Detailed Guide

Conclusion

The Post Office Monthly Income Scheme (POMIS) is a government-backed scheme launched to provide a stable monthly income to people who opt for it. After all, financial security is one of the significant aspects of all our lives.

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