Looking for a safe, government-backed investment with high monthly returns? The Post Office Monthly Income Scheme (POMIS) is offering a fantastic opportunity for investors to earn up to ₹9,250 every month with just one smart deposit. With fixed returns, a sovereign guarantee, and attractive interest rates, this scheme is perfect for salaried individuals, retirees, homemakers, and conservative investors. Here’s everything you need to know to make the most of it.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme offering guaranteed monthly income. It is ideal for those who prefer low-risk investments and steady returns from a one-time deposit.
Key Features of POMIS:
| Feature | Details |
|---|---|
| Minimum Deposit | ₹1,000 |
| Maximum Deposit | ₹9 lakh (individual accounts), ₹15 lakh (joint accounts) |
| Interest Rate | 7.4% per annum (as of April 2025) |
| Interest Payment | Monthly |
| Tenure | 5 years |
| Premature Withdrawal | Allowed with a penalty |
How to Earn ₹9,250 Monthly – The Calculation Explained
To earn ₹9,250 per month, you need to invest a lump sum in the scheme. Here’s the breakdown:
| Deposit Amount (₹) | Interest Rate (p.a.) | Monthly Income (₹) | Tenure | Account Type |
|---|---|---|---|---|
| ₹15,00,000 | 7.4% | ₹9,250 | 5 years | Joint Account |
| ₹9,00,000 | 7.4% | ₹5,550 | 5 years | Single Account |
| ₹6,00,000 | 7.4% | ₹3,700 | 5 years | Single Account |
| ₹3,00,000 | 7.4% | ₹1,850 | 5 years | Single Account |
| ₹1,50,000 | 7.4% | ₹925 | 5 years | Single Account |
| ₹1,00,000 | 7.4% | ₹616 | 5 years | Single Account |
| ₹50,000 | 7.4% | ₹308 | 5 years | Single Account |
For example, a joint investment of ₹15 lakh in POMIS will yield ₹9,250 per month, making it a great option for families or couples who want regular, reliable income.
Eligibility Criteria and Account Opening Process
Who Can Invest?
- Indian residents above 18 years of age
- Guardians can open accounts on behalf of minors
- Joint accounts allowed for up to 3 adults
How to Open an Account:
- Visit your nearest Post Office.
- Submit a filled Form-A.
- Provide KYC documents: Aadhar card, PAN card, and address proof.
- Attach passport-sized photographs.
- Deposit a cheque or cash (minimum ₹1,000).
How is Monthly Interest Paid?
The interest is credited directly to the linked Post Office savings account. You can set up standing instructions for automatic transfers or withdrawals.
| Interest Mode | Available? |
|---|---|
| Post Office Savings Account | Yes |
| ECS to Bank Account | No |
| Cash Payment | No |
POMIS vs Other Monthly Income Investment Plans
Here’s a comparison of POMIS with other popular monthly income schemes:
| Scheme Name | Interest Rate (Approx) | Tenure | Monthly Payout (on ₹15L) | Risk Level |
|---|---|---|---|---|
| Post Office MIS | 7.4% | 5 years | ₹9,250 | Very Low (Govt-backed) |
| Bank FD (Monthly) | 6.75% | 5 years | ₹8,438 | Low |
| Senior Citizen SCSS | 8.2% | 5 years | ₹10,250 | Very Low (Govt-backed) |
| Mutual Fund MIP | 8-9% (variable) | Varies | Not fixed | Medium-High |
Why POMIS is a Smart Investment in 2025?
- Safe & Secure: Backed by the Government of India.
- Fixed Monthly Income: No market fluctuations, ensuring stable returns.
- Ideal for Retirees: Provides consistent income, perfect for senior citizens.
- Tax-efficient Returns: No TDS on interest, though the income is taxable.
- Flexibility in Joint Holding: The ₹15 lakh ceiling for joint accounts offers greater investment capacity.
Tips to Maximize Your Returns
- Open a joint account to take advantage of the ₹15 lakh investment limit.
- Use monthly interest for SIPs or Recurring Deposits (RDs) to compound your returns.
- Combine with SCSS if you’re a senior citizen to maximize returns.
- Reinvest the maturity amount into another 5-year term for continued benefits.
Important Rules and Considerations
| Rule/Condition | Description |
|---|---|
| Premature Withdrawal | Allowed after 1 year, with a 1-2% penalty on principal. |
| Taxation | Interest income is taxable under ‘Income from Other Sources.’ |
| Nomination Facility | Available at the time of account opening or anytime later. |
| Non-Resident Indians (NRIs) | Not eligible to invest in POMIS. |
| Reinvestment | You can open a fresh account after 5 years with the maturity amount. |
| Maximum Number of Accounts | No limit on the number of accounts, but investment limits apply cumulatively. |
The Post Office Monthly Income Scheme (POMIS) offers guaranteed monthly returns with zero market risk, making it a solid option for families, retirees, and conservative investors. With an attractive interest rate of 7.4%, you can earn up to ₹9,250 per month from a one-time deposit. This scheme is especially valuable if you’re looking for a secure, government-backed income source.
Be sure to check with your local Post Office for the latest details before investing. This article is for informational purposes and does not constitute financial advice.
FAQs
How can I earn ₹9,250 per month from POMIS?
Invest ₹15 lakh in a joint account to earn ₹9,250 monthly at 7.4% interest.
What is the maximum deposit for an individual account?
The maximum deposit for an individual account is ₹9 lakh.
Can I withdraw my money before 5 years?
Yes, premature withdrawal is allowed after 1 year with a penalty.
Is the interest earned taxable?
Yes, the interest earned is taxable under “Income from Other Sources.”
How do I receive my interest?
The interest is credited to your linked Post Office savings account every month.
Good for retired & senior citizens