Post Office Monthly Income Scheme (POMIS): Interest, Benefits & Eligibility

What Is the Post Office Monthly Income Scheme (POMIS)?

This scheme, an out-and-out government of India scheme offered through India Post, allows investors to deposit a lump sum and earn a fixed monthly income.

The key highlights of the POMIS scheme are:

It is a low-risk, stable return scheme for retired, aged and conservative investors who are looking for Fixed deposit alternatives and capital safety.

Pro-tip: There is also a POMIS Scheme for senior citizens, with a minimum investment of Rs. 1000 and a maximum limit of 4.5 lakhs.

What is the Post Office MIS Interest Rate for 2026?

The post office's monthly income scheme interest rate is declared by the Finance Ministry and Central Government of India, every quarter and is offered through India Post Savings Bank. The rates are revised based on returns from government bonds with a similar maturity. Once you open a POMIS account with the India Post, your interest rate remains fixed for the entire tenure of 5 years, even if the rates are revised intermittently by the government. Although interest rates are fixed for a quarter, it is paid out monthly.

Note: For April 2026 to June 2026, the MIS interest rate in the post office stands at 7.40% per annum.

What are the Historical Interest Rates of Post Office MIS

Historically, the MIS rate of interest has not fluctuated much and has been kept steady, as evident from the chart below:

Some Key Benefits of the Post Office Monthly Income Scheme:

1. Capital is protected since this is a government-backed scheme.

2. A fixed tenure encourages disciplined financial planning.

3. Minimum investment: Rs. 1000; hence, affordable.

4. It provides consistent monthly payouts, helping with recurring day-to-day expenses.

Eligibility Criteria for Opening a POMIS Account

The individual must be a resident citizen of India residing anywhere in India and be at least 18 years of age.

The scheme allows individual and joint ownership of the account and is also allowed for senior citizens. Non-resident Indians are not eligible for opening a POMIS account.

Pro-Tip: Children aged 10 and above are eligible to open a POMIS account under guardianship and can withdraw funds once they are 18 years old.

How to Open a Post Office Monthly Income Scheme Account?

To apply for the Post Office monthly income scheme, you need to have a Post Office savings account.

1. Then, take an application form for the POMIS scheme from the post office counter or download it.

2. Submit a duly filled form with self-attested documents.

3. Provide nominee details.

4. An initial account-opening deposit of Rs. 1000 is required in cash or by cheque.

List of Documents Required to Open a POMIS Account:

● Identity proof such as PAN, Aadhaar, Passport.

● Address proof such as Aadhaar, voter ID, Driving License, or any utility bill.

● Two recent passport-sized photographs.

What are the Investment Limits, Tenure and Returns in POMIS?

A single holder can invest up to a maximum of 9 lakhs, joint holders can invest a maximum of 15 lakhs, and a senior citizen account has a limit of 4.5 lakhs for a fixed tenure of 5 years.

The fixed monthly interest is paid out at the prevailing rate of interest declared by the GOI for the quarter. Although the interest rate is annual, the amount credited to holders is monthly.

What are the Consequences of Early Withdrawal Rules and Penalties in POMIS?

Premature withdrawal is allowed but very restricted.

● No withdrawals can be made within 1 year of the POMIS account opening.

● After 1 year and before 3 years, there is a 2 % penalty on the Principal amount.

● After 3 years and before 5 years, there is a 1% deduction from the deposit.

What happens on the maturity of a POMIS Account?

Upon maturity, you can withdraw the full amount from the post office or have the same credited directly through ECS to your existing bank account.

To Sum Up

The POMIS is a reliable and viable option for those with restricted capital, a low risk appetite, and who expect to have regular future income from the capital invested. It is suitable for low-income groups, as the minimum investment amount is only Rs. 1000, and for seniors and retirees, as it provides a fixed monthly interest rate to holders.

Frequently Asked Questions