Post Office Monthly Income Scheme : Are you looking for a safe, government-backed scheme that offers high monthly returns? The Post Office has rolled out a stunning option for investors—allowing you to earn ₹9,250 every month by making just one smart deposit. With fixed returns, sovereign guarantee, and attractive interest rates, this opportunity is perfect for salaried employees, retirees, and homemakers alike. Here’s how you can 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 saving plan that provides guaranteed monthly returns. It is designed for risk-averse individuals seeking steady income from a one-time deposit.
Key Features of POMIS:
- Minimum deposit: ₹1,000
- Maximum deposit: ₹9 lakh (for individual accounts), ₹15 lakh (for joint accounts)
- Interest rate: 7.4% per annum (as of April 2025)
- Interest paid monthly
- Tenure: 5 years
- Premature withdrawal allowed (with penalty)
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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 how the numbers work:
| 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 |
From the above table, a joint investment of ₹15 lakh in POMIS will fetch ₹9,250 per month, making it a preferred choice for couples or family members who want a consistent income flow.
Eligibility Criteria and Account Opening Process
Who Can Invest?
- Indian residents above 18 years
- Guardians on behalf of minors
- Joint accounts for up to 3 adults
Account Opening Process:
- Visit your nearest Post Office
- Submit a duly filled Form-A
- Provide KYC documents: Aadhar, PAN, and address proof
- Attach passport-size photographs
- Deposit cheque or cash (minimum ₹1,000)
How Monthly Interest is Paid?
The monthly interest is directly credited into the linked Post Office savings account. You can set 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 Plans
Let’s compare POMIS with other popular monthly income investment options:
| Scheme Name | Interest Rate (Approx) | Tenure | Monthly Payout (on ₹15L) | Risk Level |
|---|---|---|---|---|
| Post Office MIS | 7.4% | 5 years | ₹9,250 | Very Low (Govt) |
| Bank FD (Monthly) | 6.75% | 5 years | ₹8,438 | Low |
| Senior Citizen SCSS | 8.2% | 5 years | ₹10,250 | Very Low (Govt) |
| 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 fluctuations like market-linked instruments
- Ideal for Retirees: Offers stability and regular income
- Tax-efficient Returns: No TDS deducted, although interest is taxable
- Flexibility in Joint Holding: Allows higher investment ceiling
Tips to Maximize Your Returns
- Open a joint account to utilize the ₹15 lakh limit
- Use the monthly interest to fund SIPs or RD for compounding growth
- Combine with SCSS if you are a senior citizen for higher returns
- Reinvest maturity amount into another 5-year term
Important Rules and Considerations
| Rule/Condition | Description |
|---|---|
| Premature Withdrawal | Allowed after 1 year with 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 any time later |
| Non-Resident Indians (NRIs) | Not eligible to invest in POMIS |
| Reinvestment | Can open a fresh account after 5 years with maturity amount |
| Maximum Number of Accounts | No limit on number of accounts, but investment limits apply cumulatively |
The Post Office Monthly Income Scheme (POMIS) is an excellent option for individuals seeking guaranteed income with zero market risk. With an interest rate of 7.4% and the ability to earn up to ₹9,250 per month through a one-time deposit, it stands out as a dependable income source for families, senior citizens, and conservative investors. If you’re looking to balance your portfolio with fixed income, this plan is worth strong consideration.
The interest rate and rules mentioned in the article are based on data as of April 2025. Please check with your local Post Office for the latest updates before investing. This article is for informational purposes only and does not constitute financial advice.
