Best Life Insurance Plans From Top Insurers

20+ companies
to choose from

1 Lakh+
Happy customers

Secure your Family

Free Quotes From Top Companies



Phone No.




By proceeding you are accepting our T&C and privacy policy

There are various investment options available in India. There are various spheres where one can invest money and park their surplus in India. One such medium of investment is the post office in India.

The post office offers POMIS (Post Office Monthly Income Scheme) which is a guaranteed investment platform. Here one gets a fixed and guaranteed rate of interest on the invested amount. As an investor, if you are looking for a regular monthly income then the POMIS is the best investment vehicle for you. At present this scheme offers one 7.8 % of annual interest. This interest is paid out to investors monthly. Therefore, the investment scheme is referred to as the Monthly Income Scheme. As an investor, once the initial investment is made, one starts to receive the interest exactly a month post that as the interest calculation starts exactly from the day the investment is made.

Important: National Pension Scheme (NPS) – 2 Mins Quick Guide

Why Should One Invest in The POMIS?

If you are wondering why you should invest in Post Office Monthly Income Scheme and not others, then the reason is that under this investment scheme one gets a regular and assured monthly return on the funds invested. It is a great avenue of investment for all those who need an assured monthly income as a guaranteed source of funds. It is an amazing vehicle for small investors to make small savings and earn interest on the same.

Features of Post Office Monthly Income Scheme

  • Any Indian can open this account.
  • Ideally, one needs to own a post office savings accounts
  • There is no age bar for opening the same
  • Minors can also invest in POMIS. Once, they turn 10 the account can be transferred to their name directly
  • As a minor investor, you can open the account with a guardian with a maximum limit of INR 3, 00,000.
  • For others, the minimum investment amount is INR 1500.
  • The maximum for a single account is INR 4, 50,000 and for a joint account, it is INR 9, 00,000.
  • The rate of interest is 7.8 % per annum
  • The tenure is for 5 years
  • It can be opened by an individual, in joint capacity and as a minor
  • You can also nominate someone in the account.

Also Read: NPS or Pension Plans – Which One Should You Opt For

Important Aspects of Post Office Monthly Income Scheme

  • This scheme offers capital protection. It is a secured form of investment as is post office monthly schemebacked by the Government of India. As a result, it is a secured form of investment that is known to give guaranteed returns.
  • If you are looking for an investment platform that can beat the ever-rising inflation rate then, the Post Office Monthly Income Scheme is the best vehicle for you. It offers a guaranteed interest rate. Generally, the rate of interest offered under this scheme is always a notch higher than the prevailing rate of interest in the market, making it a positive form of the investment plan.
  • There are various forms of investment in the market but not all are guaranteed. In the case of a POMIS, the rate of interest is guaranteed. The interest is paid out monthly. At the beginning of the quarter, the applicable rate of interest is calculated based on the prevalent G-Sec rates. Generally, the post office keeps a spread of 0.25 % as compared to others.
  • POMIS has a lock-in period of 5 years.
  • Unlike other papers or investments that require a commercial rating to back its worth, in the case of Post Office Monthly Income Scheme, the same is only backed by the Government of India.
  • One can prematurely close the account by paying a penalty on the same
  • It is a risk-free form of investment.
  • Unfortunately, there is no tax benefit on this investment.
  • You can open the account only at the post office

The Process To Open a POMIS?

You need to visit your nearest post office to link your savings account with them to this account. You would be asked to fill in an application form. Two passport-sized photographs are required. Original Aadhar card or PAN card is mandatory. In case Pan is not available then form 60 or 61 would have to be provided along with the driving license, voter’s card or even ration card with the address. Once, the account is opened, you can ask them for pay-in-slip to deposit the initial amount in the account. You can open the POMIS account at any post office and of required transfer it to another one. If you want to reinvest the maturity sum back to the account the same is possible. The interest earned on them is taxable but a post office does not deduct any TDS on the same.

If you want to open a Post Office Monthly Income Scheme, then visit your nearest post office to learn about the same. It is a safe and guaranteed form of investment that will help you invest a small amount of money that would garner monthly income.

Top 5 Investment Options In India

Naval Goel is the founder of He is an Associate Member of the Indian Institute of Insurance`, Pune. He has been authorized by IRDA to act as a Principal Officer of Insurance Web Aggregator.
Linkedin / Twitter