Post Office Monthly Income Scheme – The Government of India continues to support secure and dependable savings options for its citizens. One of the most trusted investment schemes—the Post Office Monthly Income Scheme (POMIS)—has been updated for 2025. This scheme now offers an attractive monthly return of ₹9,250, making it a popular choice for conservative investors, retirees, and those seeking steady passive income.
With government backing and assured returns, the Post Office Monthly Income Scheme stands out as a low-risk investment with fixed monthly payouts.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a savings scheme run by the Indian government through the postal department. It is ideal for individuals who prefer low-risk, fixed-income investment options.
POMIS allows you to invest a lump sum and earn a guaranteed monthly income in the form of interest. The interest is credited directly to your savings account every month. The scheme is especially suited for retired individuals, senior citizens, or anyone looking for a reliable source of monthly earnings.
Key Features of POMIS:
- Fixed interest rate revised quarterly by the Ministry of Finance
- Government-backed, making it a highly secure investment
- Monthly interest payout
- Investment tenure of 5 years
- Option for individual or joint accounts
- Minimum investment: ₹1,000
- Maximum investment: ₹9 lakh (individual) and ₹15 lakh (joint)
What’s New in 2025: Higher Returns
The most attractive change in 2025 is the increase in the interest rate, which now allows investors to earn up to ₹9,250 monthly. This increase is aimed at making the scheme more competitive compared to other investment products such as fixed deposits and senior citizen savings schemes.
POMIS Interest Rate 2025:
- Annual Interest Rate: 7.4% (effective from April 2025)
- Monthly Return on ₹15 Lakh Investment: ₹9,250
How Much Can You Earn? Monthly Income Breakdown
Here’s a detailed table showing estimated monthly income based on different investment amounts under the updated POMIS interest rate of 7.4% per annum.
| Investment Amount (₹) | Annual Interest (₹) | Monthly Income (₹) |
|---|---|---|
| 1,00,000 | 7,400 | 616 |
| 2,00,000 | 14,800 | 1,233 |
| 3,00,000 | 22,200 | 1,850 |
| 5,00,000 | 37,000 | 3,083 |
| 7,00,000 | 51,800 | 4,316 |
| 9,00,000 | 66,600 | 5,550 |
| 15,00,000 (Joint) | 1,11,000 | 9,250 |
Note: Interest is credited monthly to the investor’s savings account linked with the post office.
See More : Post Office FD Scheme
Who Should Consider Investing in POMIS?
This scheme is ideal for investors looking for stable monthly income without taking on high risks. It is particularly suitable for:
- Senior citizens and retirees
- Homemakers with a lump sum to invest
- Low-risk investors
- Parents looking for regular income for children’s education
- Anyone seeking guaranteed passive income
How to Open a POMIS Account?
Opening a POMIS account is simple and can be done at any Indian Post Office branch. Here’s what you need:
Documents Required:
- Valid identity proof (Aadhaar, PAN, Passport, etc.)
- Address proof
- Passport-size photographs
- Post Office Savings Account details
- KYC form (available at the post office)
Account Types:
- Single Account: One individual can invest up to ₹9 lakh
- Joint Account: Up to three adults; can invest up to ₹15 lakh collectively
- Minor Account: Account can be opened on behalf of a minor
Steps to Open the Account:
- Visit the nearest post office branch.
- Fill out the POMIS account opening form.
- Submit the required documents along with passport-size photographs.
- Deposit the investment amount via cash or cheque.
- Link a savings account to receive monthly interest payments.
Benefits of the Post Office Monthly Income Scheme
POMIS has stood the test of time due to its many benefits. Here are some key advantages:
- Capital Protection: Your principal amount is safe and guaranteed by the government.
- Fixed Returns: Assured monthly interest payout with no market dependency.
- Liquidity: Although premature withdrawals are penalized, you can access funds after one year if needed.
- Tax Efficiency: No TDS is deducted on interest, but it is taxable as per your income slab.
- Nomination Facility: You can nominate a beneficiary at the time of account opening or later.
Limitations and Considerations
While POMIS is a great investment for many, it does come with certain limitations that investors should be aware of:
- No tax benefits under Section 80C
- Interest is fully taxable
- Premature withdrawal before 1 year not allowed
- Penalty applicable for early closure after 1 year but before 5 years
- Not suitable for high-growth investors
Comparison with Other Fixed Income Schemes
Here’s how POMIS stacks up against other popular fixed-income investment options in India:
| Scheme | Interest Rate (Apr 2025) | Lock-in Period | Tax Benefit | Monthly Payout |
|---|---|---|---|---|
| Post Office MIS | 7.4% | 5 years | No | Yes |
| Senior Citizen Savings Scheme | 8.2% | 5 years | Yes (80C) | Quarterly |
| Bank FD (5 years) | 6.5%–7% | 5 years | Yes (80C) | Yes (optional) |
| National Savings Certificate | 7.7% | 5 years | Yes (80C) | No |
Note: Interest rates may vary across banks and institutions.
How to Maximize Benefits from POMIS?
To get the most out of this scheme:
- Invest the maximum limit in a joint account (₹15 lakh) to earn higher monthly income
- Use the monthly interest payout for regular expenses or reinvest in a recurring deposit for compounding benefits
- If nearing retirement, use this as part of a diversified low-risk portfolio
Frequently Asked Questions (FAQs)
Q. Is POMIS safe to invest in?
Yes, it is a government-backed scheme, making it one of the safest investment options in India.
Q. Can I reinvest the maturity amount?
Yes, after 5 years, you can withdraw or reinvest the maturity amount into the same or another scheme.
Q. Can I open more than one POMIS account?
Yes, but the total investment limit across all accounts must not exceed ₹9 lakh for individuals and ₹15 lakh for joint holders.
Q. Is there any risk of losing money?
No, the principal is completely safe as it is guaranteed by the Government of India.
Q. How is interest paid?
Interest is credited monthly to your linked savings account.
The Post Office Monthly Income Scheme 2025 continues to be a smart, stable, and secure investment avenue, especially for those looking for fixed monthly returns. With the recent interest rate revision, it has become even more attractive for conservative investors. While it may not offer tax benefits or high returns like equity or mutual funds, the peace of mind and predictability it offers make it a worthy addition to any risk-averse portfolio.
