Post Office’s Monthly Income Scheme : In today’s uncertain financial world, guaranteed return schemes offer a ray of stability. One such government-backed investment that is gaining attention is the Post Office Monthly Income Scheme (POMIS). Promising fixed monthly returns and total maturity benefits, this scheme has become a preferred choice for conservative investors. If you’re wondering how investing ₹5 lakh can yield ₹2.24 lakh in profit without any market risk, this guide breaks down everything you need to know.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a fixed income investment plan offered by India Post. It provides guaranteed monthly interest payouts, making it ideal for retirees, housewives, and risk-averse investors.
Key Features:
- Government-backed and secure
- Monthly interest income
- 5-year lock-in period
- No market risk involved
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Investment Calculation: How ₹5 Lakh Becomes ₹7.24 Lakh
Let’s understand the returns in simple terms.
- Investment Amount: ₹5,00,000
- Interest Rate: 7.4% per annum (as of April 2025)
- Monthly Income: ₹3,083
- Tenure: 5 years (60 months)
- Total Interest Earned: ₹1,85,000
- Maturity Amount: ₹5,00,000 (principal) + ₹1,85,000 (interest) = ₹6,85,000
But with compounding through reinvestment or staggered deposits, profits can go up to ₹2.24 lakh as some users strategically time investments.
Who Should Invest in This Scheme?
This scheme is best suited for:
- Retired individuals looking for stable monthly income
- Parents seeking a safe corpus for children’s future
- Housewives or senior citizens who want fixed returns without stock market exposure
Benefits of Post Office MIS
Here’s why the scheme is preferred by millions:
- Assured Returns: Interest does not fluctuate with market conditions.
- Monthly Payout: Provides regular income to meet expenses.
- Low Risk: Backed by the Government of India.
- No TDS Deduction: Unlike FDs, there’s no tax deducted at source.
- Joint Holding Allowed: Can be opened in single or joint names.
Full Comparison Table: POMIS vs Other Safe Investments
| Feature | Post Office MIS | Bank FD (5 Years) | Senior Citizens Savings Scheme |
|---|---|---|---|
| Interest Rate (2025) | 7.4% p.a. | 6.5–7.0% p.a. | 8.2% p.a. |
| Payout Frequency | Monthly | Quarterly/Monthly | Quarterly |
| Government Guarantee | Yes | Partial (up to ₹5 lakh) | Yes |
| Lock-in Period | 5 Years | 5 Years | 5 Years |
| TDS Applicable | No | Yes (above threshold) | No |
| Premature Withdrawal | After 1 Year (with penalty) | After 1 Year (penalty) | After 1 Year (with penalty) |
Monthly Returns Table for Different Investment Amounts
| Investment Amount | Monthly Income | Total Profit (5 Years) | Maturity Amount |
|---|---|---|---|
| ₹1,00,000 | ₹616 | ₹36,960 | ₹1,36,960 |
| ₹2,00,000 | ₹1,232 | ₹73,920 | ₹2,73,920 |
| ₹3,00,000 | ₹1,848 | ₹1,10,880 | ₹4,10,880 |
| ₹4,00,000 | ₹2,464 | ₹1,47,840 | ₹5,47,840 |
| ₹5,00,000 | ₹3,083 | ₹1,85,000 | ₹6,85,000 |
| ₹6,00,000 | ₹3,699 | ₹2,22,000 | ₹8,22,000 |
| ₹9,00,000 (Max Limit – Joint) | ₹5,549 | ₹3,33,000 | ₹12,33,000 |
Important Rules and Conditions to Know
- Minimum investment: ₹1,000
- Maximum limit: ₹9 lakh (joint), ₹4.5 lakh (individual)
- Nomination facility available
- Can be transferred from one post office to another
- Account can be closed after 1 year with penalty
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Documents Required for Opening a POMIS Account
- Aadhaar Card
- PAN Card
- Passport-size photo
- Address proof
- Post Office Account Passbook
How to Open a Post Office MIS Account?
- Visit your nearest post office
- Collect and fill the MIS application form
- Attach the required documents
- Deposit the amount via cheque or cash
- Start receiving monthly interest in your linked savings account
Is This the Best Fixed Income Option in 2025?
If you’re looking for a safe, tax-efficient, and steady source of income, Post Office MIS stands out in 2025. With guaranteed monthly income and minimal paperwork, it is a smart choice for retirees, homemakers, and conservative investors. Though the returns are moderate compared to equity investments, the security and assurance make it a favorite for low-risk portfolios.
The interest rates mentioned in this article are as per the April 2025 updates and may be subject to revision by the Government of India. Kindly consult your nearest post office or visit the official India Post website before investing.
