Post Office Income: Do you want regular monthly income on your investment? If you are looking for a safe option with government guarantee, then Post Office Monthly Income Scheme (POMIS) can be the best option for you. This scheme is a good way to avoid money problems after retirement and keep your savings safe
Post Office Income: Do you want regular monthly income on your investment? If you are looking for a safe option with government guarantee, then Post Office Monthly Income Scheme (POMIS) can be a best option for you. This scheme is a good way to avoid money problems after retirement and keep savings safe.
What is Post Office Monthly Income Scheme (POMIS)?
POMIS is a small savings scheme, which has been designed by the government to provide stable monthly income. These are its benefits.
Minimum deposit: ₹1,000 (in multiples of ₹1,000)
Maximum deposit: ₹9 lakh (single account) or ₹15 lakh (joint account)
Period: 5 years (fixed)
Interest rate (2024)
Interest rate: 7.4% per annum
Eligibility
Single adult
Joint account with up to three adults
Guardian of minors or mentally challenged persons
Minors above 10 years of age in their own name
How to calculate monthly income?
Formula for calculating monthly income under POMIS:
Monthly income = Deposit amount × Interest rate ÷ 12
Example:
₹5 lakh → ₹3,083 monthly
₹9 lakh → ₹5,550 monthly
₹15 lakh → ₹9,250 monthly
Post Office Monthly Income Scheme
An account can be opened with a minimum of ₹1,000.
The total deposits in all the accounts of a person cannot exceed ₹9 lakh.
Investment of up to ₹15 lakh is possible in a joint account.
Payment of Interest
Interest is credited every month.
Payment can be taken through ECS or auto-credit to linked savings account.
No additional interest is paid on unclaimed interest.
Interest is income taxable.
Premature Withdrawal
Withdrawal allowed after 1 year, but with penalty:
1–3 years: 2% deduction.
3–5 years: 1% deduction.
Maturity Benefits
The account matures after 5 years.
On maturity, the basic amount deposited is refunded.
In case of death of the account holder, the nominee or legal heir can close the account.
Why choose POMIS?
Safe returns: It is run by the government and the money is completely safe in it.
Regular income: Retired persons and conservative investors will benefit.
