What is Post office monthly income scheme (POMIS)?
The Government of India offers the Post Office Monthly Income Scheme (POMIS) through its network of post offices, making it a popular choice for earning regular monthly income. Post Office Monthly Scheme is an excellent way to save little money and make a huge corpus over time.
The Indian government backs the Post Office Monthly Income Scheme (POMIS), making it a safer option than market-linked investments like mutual funds or stock market instruments. You can open the Post office monthly scheme account offline.
Also Read: Best Savings Account Interest Rates 2025: Govt and Private Bank Comparison
Post Office Monthly Income Scheme Interest Rate 2025
For 2025, the rate of interest for the Post office monthly income scheme is 7.4 percent per annum payable monthly. The present Post Office Monthly Scheme Interest Rate is applicable from 1 January 2024. Interestingly, the Government does not deduct TDS from the interest generated from Post Office Monthly Income Scheme
Note: For 2025, Post office monthly scheme interest rate (MIS Interest rate) is 7.4% annually.
Post Office Monthly Income Scheme Calculator (Step by Step)
Post Office Monthly Income Scheme Calculator (POMIS Calculator) is a calculator that lets you calculate your monthly income under the POMIS Scheme. In the following POMIS Calculator, you can easily calculate your monthly income in the following steps-
Step 1: Select the Account Type (Single Account or Joint Account).
Step 2: Enter the annual amount that you will contribute to the Post Office Monthly Scheme account. Make sure to enter the annual amount in the multiples of Rs 1000. for example, enter 100000 or 500000. You cannot enter 650329 or 432789.
Step 3: Enter your yearly contribution to the POMIS account, and the system instantly displays your monthly interest payout just below.
Post Office Monthly Scheme Calculator (POMIS Calculator)
Also Read: Monthly Income from Your Gold? Yes! 7 Proven Ways (6th is Fastest)
What is the maximum investment limit in the Post Office Monthly Scheme?
The maximum investment limit in a single Post Office Income Scheme is Rs 9 lakh annually. If we talk about a joint account with the Post Office Monthly Scheme, you can deposit a maximum of Rs 15 lakh.
An individual can invest a maximum of Rs 9 lakh in Post Office Monthly Scheme account.
Also Read: How to Improve CIBIL Score in 12 Months (Before Banks Reject You Again!)
How to open a Post Office Monthly Income Scheme account? (Step by Step)
You can open a Post Office Monthly Scheme account in easy steps. To open a Post Office Monthly scheme account, follow the steps mentioned-
- Remember, to open a Post Office Monthly Scheme account, you must have a post office savings account. If you do not have a savings account in the post office, open one.
- Collect a Post Office Monthly Scheme form from the nearest post office. You can also download the Post Office Monthly Income Scheme account form by clicking here.
- Fill in the details like name, Age, date of Birth, Gender, Aadhar Number, PAN Number, present address, permanent address, ID proof attached, and attach a photograph of the account opener.
- Enter the details of the initial amount deposited in the POMIS Account.
- Enter the details of the Nominee and his/her details.
- Make sure to do your signature.
- Attach the supporting documents and submit the form.
Post Office Monthly Income Scheme: Eligibility
To Open a Post Office Income Scheme, the investor must be a resident Indian. NRIs cannot open a POMIS. A resident can also open a Post office monthly scheme account in the name of a minor who is 10 years or older. However, the child can use the fund only after he/she turns 18.
What documents do I need to open a Post Office Monthly Income Scheme (POMIS) account?
To open a Post Office Scheme account, you need the following documents.
Identity Card: Aadhar card or Driving license or any other government-issued ID card like a Passport or Voter ID.
Address Proof: Electricity Bill or BSNL Broadband Bill or any other address proof issued by a government authority.
Photographs: Photos of single or joint account openers.
Note: (If an Aadhaar Card/proof of enrolment of Aadhaar is not provided, any of the following documents can be accepted as valid documents for identification and address proof):- Letter issued by the National Population Register containing details of name and address or Passport or Driving license or Voter’s ID card or Job card issued by Mnregs signed by the State Government officer.
What is the minimum amount I need to open a Post Office Monthly Income Scheme account?
You must deposit a minimum of Rs 1,000 to open a Post Office Monthly Scheme account.
What is the maximum amount that can be deposited in a Post Office Income Scheme account?
You can deposit up to the maximum limit prescribed under the Post Office Monthly Scheme, that is,
Single Account: Rs 9 lakh
Joint Account: Rs 15 lakh
Can we close a Post Office Monthly Income Scheme account prematurely?
Yes, you can open a Post Office Monthly Scheme account prematurely. An account holder is permitted to close an account under the MIS scheme in post office. However, the following conditions will apply:
- You can close your Post Office MIS account after it completes one year from the date of opening.
- If you close your account on or before three years from the opening date, the post office will deduct two percent of your deposit and pay you the remaining amount.
- If you close your account after three years, the post office will deduct one percent of your deposit and pay you the balance.
What happens to the Post Office Monthly Income Scheme account if the depositor dies before its maturity?
If the Post Office MIS account holder passes away before the account matures, the post office closes the account and refunds the deposit along with interest accrued up to the month before the refund.
FAQs
Is the monthly income scheme in Post office taxable?
Only the interest earnedby POMIS is taxable.
Is Post Office Monthly Income plan covered under 80C?
No, the Post Office monthly scheme is not covered under Section 80C for tax exemption.
Can I transfer my Post Office Monthly Scheme account?
Yes, you can transfer the post office monthly scheme account anywhere in India.
Can NRIs open a Post Office Monthly Scheme account?
No, NRIs cannot open a Post Office Monthly Income account.
How can I calculate monthly income from the Post Office Monthly Income Scheme?
Multiply your investment amount by the annual interest rate (currently 7.4%) and divide by 12. Example: ₹9,00,000 × 7.4% ÷ 12 = ₹5,550/month.
Who is eligible to open a Post Office Monthly Income Scheme account?
Any Indian citizen aged 18 or above. Minors can open through a guardian. NRIs are not eligible.
Can senior citizens open a POMIS account?
Yes, senior citizens can open POMIS accounts. However, they may also consider the Senior Citizen Savings Scheme (SCSS) for higher returns.
Can I open a Post Office Monthly Income Scheme account online?
No, POMIS accounts must be opened offline at a post office.
What is the minimum deposit required to open a POMIS account?
Rs 1,000 is the minimum deposit in Post Office Monthly Income Scheme (POMIS). Deposits must be in multiples of Rs 1,000.
How Post Office Monthly Income Scheme (POMIS) work?
POMIS works in such a way that you invest a lump sum for 5 years and receive monthly interest. The principal is returned at maturity.
Is POMIS a one-time investment or can I add more funds later?
Post Office Monthly Income Scheme (POMIS) is a one-time investment. You cannot top up the same POMIS account later.
What is the interest rate offered under Post Office Monthly Income Scheme or POMIS?
As of October 2025, the interest rate is 7.4% per annum, paid monthly.
Is the interest earned from POMIS taxable?
Yes, interest is taxable. No TDS is deducted, but you must declare it in your income tax return.
How do I open a Post Office Monthly Income Scheme account?
To open a Post office monthly income account, Visit your nearest post office, fill out Form A, and submit KYC documents (Aadhaar, PAN, photo). Deposit via cash, cheque, or transfer.
How can I renew my POMIS account after maturity?
POMIS doesn’t auto-renew. You can reinvest in a new account or transfer the maturity amount to a savings or recurring deposit account.
