Post Office Monthly Income Scheme (POMIS)

Post Office Monthly Income Scheme Account (MIS) is a Government-backed small savings scheme that helps investors earn a fixed monthly income from a one-time deposit. Administered by the Department of Posts, Ministry of Communications, the scheme currently offers 7.4% annual interest payable every month and allows investments of up to Rs. 9 lakh in a single account and Rs. 15 lakh in a joint account. The account matures after 5 years, and the deposited amount remains protected under the sovereign guarantee of the Government of India.

Introduction of Post Office Monthly Income Scheme Account (MIS): A Brief Insight

For many retirees, homemakers, and conservative investors, protecting savings is often more important than chasing high returns. Market-linked investments may offer growth, but they also carry uncertainty. Most people simply want a reliable source of monthly income without worrying about market fluctuations. The Post Office Monthly Income Scheme Account (MIS) was designed to meet exactly this need.

Officially known as the National Savings (Monthly Income Account) Scheme, 2019, POMIS is one of India’s most popular government-backed small savings schemes. It allows investors to make a one-time deposit and receive a fixed monthly income in the form of interest while keeping their principal amount secure.

The scheme is operated by the Department of Posts, Ministry of Communications and is backed by the Government of India. Its primary objective is to provide a safe and predictable income stream to individuals who prefer stability over market-driven returns. Because the investment carries a sovereign guarantee, it is widely considered one of the safest savings options available in the country.

At present, POMIS offers an interest rate of 7.4% per annum, payable every month. The interest rate applicable on the date of account opening remains fixed for the entire tenure of the account. This feature provides certainty to investors, even if interest rates change in future quarters.

The scheme permits a minimum investment of Rs. 1,000. An individual can invest up to Rs. 9 lakh in a single account, while a joint account can hold deposits of up to Rs. 15 lakh. At the current interest rate, a deposit of Rs. 9 lakh can generate approximately Rs. 5,550 per month, whereas a joint account with Rs. 15 lakh can provide around Rs. 9,250 per month.

The account has a fixed tenure of 5 years. Upon maturity, the entire deposited amount is returned along with the last month’s interest. Investors who need funds before maturity can opt for premature closure after one year, subject to the prescribed deduction rules under the scheme.

Resident Indian citizens can open a POMIS account individually or jointly with up to three adults. A guardian may also open an account on behalf of a minor or a person of unsound mind, while minors aged 10 years or above can operate their own accounts. However, NRIs and Hindu Undivided Families (HUFs) are not eligible to invest under the scheme.

Opening a POMIS account is simple. Applicants need to submit the prescribed account opening form along with Aadhaar, PAN, address proof, and photographs at the nearest post office. Existing Post Office Savings Account holders with internet banking access may also open the account through the India Post e-Banking facility.

Investors looking to build a long-term corpus for a girl child may also explore the Sukanya Samriddhi Yojana, which offers a higher interest rate along with tax benefits. Senior citizens seeking a dedicated retirement income option can consider the Senior Citizens’ Savings Scheme (SCSS), which provides quarterly interest payouts and additional tax-saving benefits.

Readers interested in other savings, pension, and investment-related welfare programmes can explore our complete collection of Central Government Welfare Schemes for detailed information and application guidance.

Benefits Provided to Eligible Beneficiaries

The Department of Posts, Ministry of Communications, Government of India, provides the following benefits under the Post Office Monthly Income Scheme Account (MIS):

Interest Rate and Monthly Payout

• Interest rate of 7.4% per annum (subject to revision by the Ministry of Finance from time to time)
• Interest is paid every month, providing a regular source of income
• The interest rate applicable on the date of account opening remains fixed for the entire 5-year tenure
• Interest is rounded off to the nearest rupee as per applicable rules
• If the interest payment date falls on a Sunday or holiday, payment is made on the preceding working day

Monthly Income Example (at 7.4% per annum)

Deposit and Investment Limits

• Minimum deposit of Rs. 1,000 and thereafter in multiples of Rs. 1,000
• Only one deposit is allowed in an account at the time of opening
• Maximum investment limit of Rs. 9 lakh in a single account
• Maximum investment limit of Rs. 15 lakh in a joint account
• Any excess deposit beyond the prescribed limit is refunded as per applicable rules

Capital Safety and Convenience

• Deposit backed by the Government of India, ensuring a high level of safety
• Nomination facility available at the time of opening or later
• Account can be transferred from one post office to another anywhere in India
• Monthly interest can be credited directly to a Post Office Savings Account
• ECS facility available for crediting interest to a linked bank account, wherever applicable

Maturity Benefits

• Account matures after 5 years
• Full deposit amount is repaid on maturity along with the last month’s interest
• No extension facility is available after maturity
• If the account is not closed after maturity, the balance earns interest at the applicable Post Office Savings Account rate
• In case of the account holder’s death, the deposit along with eligible interest is paid to the nominee or legal heir

Note: Unclaimed monthly interest does not earn any additional interest under the scheme. Account holders may transfer the monthly interest to a Post Office Savings Account or other suitable savings instruments for better utilisation.

Eligibility Conditions Required to be Fulfilled

The Department of Posts, Ministry of Communications, Government of India, has prescribed the following eligibility conditions for opening a Post Office Monthly Income Scheme (POMIS) account:

• Must be a resident citizen of India
• A single adult can open an individual account
• Up to three adults can open a joint account
• A guardian can open an account on behalf of a minor
• A guardian can open an account on behalf of a person of unsound mind
• A minor aged 10 years or above can open and operate the account in their own name
• An individual can open multiple MIS accounts, subject to the prescribed deposit limits
• Total deposits must not exceed Rs. 9 lakh in single accounts
• Total deposits must not exceed Rs. 15 lakh in joint accounts
• Minor account holders must complete fresh KYC formalities after attaining 18 years of age

Not Eligible:

• Non-Resident Indians (NRIs)
• Hindu Undivided Families (HUFs)

Note: Accounts can also be opened through the India Post e-Banking facility. A Post Office Savings Account is required for using e-Banking services.

Documents Required to be Attached

Applicants need to submit the following documents while opening a Post Office Monthly Income Scheme (POMIS) account:

• Account Opening Form (Form-1)
• Aadhaar Card
• PAN Card
• Proof of Identity (Passport, Voter ID Card, Driving Licence, etc.)
• Proof of Address
• Passport-size Photographs
• Nominee Details (if nomination is opted)
• KYC Documents of Joint Holders (for joint accounts)
• Birth Certificate (for minor accounts)
• Guardianship Proof (where applicable)

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

Opening a Post Office Monthly Income Scheme (POMIS) account is a simple process. Eligible individuals can open the account by visiting a post office or through the India Post e-Banking facility, subject to eligibility and availability.

Step 1: Visit your nearest post office and ensure that you have a Post Office Savings Account. Having a savings account is useful because the monthly interest earned under POMIS can be credited directly to it.

Step 2: Obtain and fill out the Account Opening Form (Form-1) for National Savings Schemes. Select the Monthly Income Scheme option and provide all required personal details. If opening a joint account, choose the appropriate account type and add the details of all joint holders.

Step 3: Attach the required documents, including Aadhaar Card, PAN Card, address proof, photographs, and any additional documents applicable to joint, minor, or guardian-operated accounts.

Step 4: Submit the completed application form along with the documents and deposit amount. The minimum investment is Rs. 1,000, and deposits must be made in multiples of Rs. 1,000, subject to the prescribed maximum limit.

Step 5: After successful verification, the post office will open the account and issue a passbook containing the account details, deposit amount, and account opening date.

Step 6: Provide your Post Office Savings Account or eligible bank account details to activate the monthly interest credit facility so that the interest is transferred automatically every month.

Step 7: Existing customers who have an active Post Office Savings Account with internet banking enabled can also open a POMIS account online through the India Post e-Banking portal.

Premature Closure: Account holders can apply for premature closure by submitting the prescribed closure form and passbook at the concerned post office. Premature closure is not permitted before completion of one year from the date of account opening. Applicable deductions are levied as per prevailing scheme rules.

Maturity Withdrawal: On completion of the 5-year tenure, submit a closure request along with the passbook at the post office to receive the maturity amount and the last month’s interest. Investors wishing to continue under the scheme must open a fresh account after maturity.

Important: Before investing, verify the latest interest rate, deposit limits, and operational guidelines with the nearest post office or through the official India Post portal.

Important Links Available for the Scheme

• Post Office Savings Schemes – Official Portal, Department of Posts
• National Savings (Monthly Income Account) Scheme, 2019 – Official Rules Document
• India Post e-Banking Portal – Open and Manage Account Online
• National Savings Institute, Ministry of Finance – Official Portal
• Department of Posts, Government of India – Official Portal

Contact Details in Case of Help Needed

• Department: Department of Posts, Ministry of Communications, Government of India
• Backing Authority: Ministry of Finance, Department of Economic Affairs
• Nodal Institute: National Savings Institute (NSI)
• NSI Address: 1st Floor, ICCW Building, 4, Deen Dayal Upadhyaya Marg, New Delhi – 110002
• NSI Email: nsi@nsiindia.gov.in
• Grievance Redressal: File a complaint through the India Post Grievance Redressal Portal
• Local Level: Visit your nearest Post Office offering savings bank services for account opening, deposit, premature closure, or maturity withdrawal

Frequently Asked Questions (FAQs)

Q. What is the Post Office Monthly Income Scheme (POMIS)?

Ans. The Post Office Monthly Income Scheme (POMIS), officially known as the National Savings (Monthly Income Account) Scheme, 2019, is a Government-backed small savings scheme operated by the Department of Posts. It allows investors to make a one-time deposit and receive a fixed monthly income through interest payments for a period of 5 years while keeping the principal amount secure.

Q. What is the current interest rate under POMIS?

Ans. The scheme currently offers an interest rate of 7.4% per annum, payable every month. The interest rate applicable on the date of account opening remains fixed throughout the entire 5-year tenure.

Q. What is the minimum and maximum investment allowed?

Ans. The minimum deposit is Rs. 1,000 and investments must be made in multiples of Rs. 1,000. An individual can invest up to Rs. 9 lakh in a single account, while the maximum limit for a joint account is Rs. 15 lakh.

Q. Who can open a POMIS account?

Ans. Any resident Indian citizen can open a POMIS account individually or jointly with up to three adults. A guardian may also open an account on behalf of a minor or a person of unsound mind. Minors aged 10 years or above can operate an account in their own name.

Q. Are NRIs eligible to invest in POMIS?

Ans. No. Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible to open a Post Office Monthly Income Scheme account.

Q. What is the difference between Joint ‘A’ and Joint ‘B’ accounts?

Ans. In a Joint ‘A’ account, all account holders must operate the account jointly. In a Joint ‘B’ account, any one of the account holders can operate the account independently.

Q. How much monthly income can I receive from POMIS?

Ans. At the current interest rate of 7.4%, a deposit of Rs. 9 lakh can generate approximately Rs. 5,550 per month, while a joint account investment of Rs. 15 lakh can provide around Rs. 9,250 per month.

Q. Can I close my account before maturity?

Ans. Yes, but premature closure is allowed only after 1 year from the date of opening. A deduction of 2% of the principal applies if the account is closed between 1 and 3 years, while a deduction of 1% applies if it is closed after 3 years but before maturity.

Q. Is the interest earned under POMIS taxable?

Ans. Yes. The interest received under POMIS is fully taxable as per the applicable income tax slab of the account holder. The investment amount is also not eligible for deduction under Section 80C.

Q. Does unclaimed monthly interest earn additional interest?

Ans. No. Any monthly interest that remains unclaimed does not earn further interest within the MIS account. Investors may use auto-credit facilities to transfer the interest to a savings account or another investment product.

Q. Can I extend my POMIS account after 5 years?

Ans. No. The scheme does not provide any extension facility. After maturity, investors must open a fresh account if they wish to continue investing under POMIS.

Q. What happens if the account holder dies before maturity?

Ans. In such cases, the account is closed and the deposited amount, along with eligible interest, is paid to the nominee or legal heir according to the applicable rules.

Q. Can I open more than one POMIS account?

Ans. Yes. Multiple accounts can be opened, either singly or jointly, provided the combined investment remains within the prescribed maximum deposit limits.

Q. What should be done when a minor account holder turns 18?

Ans. After attaining 18 years of age, the account holder must submit a fresh account opening form along with updated KYC documents to convert the account into an adult account.

Q. Can a POMIS account be transferred?

Ans. Yes. The account can be transferred from one post office to another anywhere in India without affecting the investment or maturity period.

Q. Where can I get more information or assistance regarding POMIS?

Ans. You can visit your nearest post office or access the official Department of Posts website at www.indiapost.gov.in for detailed information, account-related services, and grievance redressal support.

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.