Explore the Post Office Monthly Income Scheme (POMIS) 2025 – a government-backed savings plan offering guaranteed monthly income with low risk. Learn benefits, interest rates, eligibility, and how to apply.
In today’s uncertain financial landscape, many people are seeking reliable investment options that offer guaranteed returns. If you’re looking for a secure, low-risk investment with a fixed monthly payout, the Post Office Monthly Income Scheme (POMIS) could be your ideal choice. Backed by the Government of India, this savings scheme is a favorite among retirees, conservative investors, and those looking to diversify their portfolios. This blog explores everything you need to know about POMIS in 2025 — from benefits and interest rates to eligibility and how to invest
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme is a small savings scheme offered by India Post. It allows individuals to invest a lump sum and receive a fixed monthly interest income. Since it’s government-backed, it’s considered one of the safest investment options available in India.
Key Features of POMIS:
- Guaranteed monthly returns
- Low-risk investment
- Government-backed savings instrument
- Attractive interest rate (revised quarterly)
- Lock-in period of 5 years
POMIS Interest Rate for 2025
As of Q2 2025, the POMIS interest rate is 7.4% per annum, payable monthly. This rate is reviewed and revised by the Ministry of Finance every quarter.
Interest Calculation Example:
| Investment Amount | Annual Interest (7.4%) | Monthly Payout |
| ₹1,50,000 | ₹11,100 | ₹925 |
| ₹4,50,000 | ₹33,300 | ₹2,775 |
| ₹9,00,000 | ₹66,600 | ₹5,550 |
Note: No additional bonus or maturity amount is paid apart from the invested principal.
Eligibility Criteria for POMIS
To invest in the Post Office Monthly Income Scheme, you must meet the following eligibility conditions:
- Must be an Indian resident
- Non-Resident Indians (NRIs) are not eligible
- HUFs (Hindu Undivided Families) are also not eligible
- A single adult
- (ii) Joint Account (up to 3 adults) (Joint A or Joint B))
- (iii) a guardian on behalf of minor/ person of unsound mind
- (iv) a minor above 10 years in his own name.
POMIS Investment Limits
| Investor Type | Minimum Investment | Maximum Limit |
| Individual Account | ₹1,000 | ₹9,00,000 |
| Joint Account (up to 3 adults) | ₹1,000 | ₹15,00,000 (combined) |
| Minor Account | ₹1,000 | ₹3,00,000 |
Also read Public Provident Fund PPF complete information
Key Benefits of Post Office Monthly Income Scheme
- Regular Monthly Income
- Perfect for retirees or anyone seeking a predictable monthly return.
- Government Guarantee
- 100% principal and interest security as it is backed by the Government of India.
- Tax-Free Returns
- Monthly interest is taxable, but no TDS (Tax Deducted at Source) is applied.
- Flexible Account Options
- Choose from single, joint, or minor accounts as per your needs.
- Easy Liquidity
- Premature withdrawal allowed after 1 year (with penalty).
- How to Open a POMIS Account
- Opening a POMIS account is simple and can be done at any post office across India. Here’s how:
Steps to Open an Account:
- Visit your nearest post office.
- Fill Form A (available at post office or online).
- Submit passport-size photographs, ID proof (Aadhar/PAN), and address proof.
- Deposit amount via cash/cheque.
- Nominate a beneficiary (Form E).
Once the account is active, monthly interest will be credited directly to your post office savings account.
Premature Withdrawal Rules
Though the lock-in period is 5 years, premature withdrawals are allowed:
- 1 to 3 years: 2% penalty on the principal
- 3 to 5 years: 1% penalty on the principal
Note: No interest is paid if the account is closed within 1 year.
Renewal and Reinvestment Options
At maturity (after 5 years), you can either:
- Withdraw your full principal amount
- Reinvest in the same or another small savings scheme
- Extend the investment for another 5 years (as per prevailing rules)
POMIS vs. Other Monthly Income Options
| Feature | POMIS | Senior Citizen Savings Scheme (SCSS) | Bank Fixed Deposit |
| Risk Level | Very Low | Very Low | Low to Medium |
| Monthly Interest | Yes | Yes | Yes (on demand) |
| Tax on Interest | Taxable | Taxable | Taxable |
| Lock-in Period | 5 Years | 5 Years | 1-10 Years |
| Premature Withdrawal | Allowed | Allowed (with penalty) | Allowed (with penalty) |
Conclusion: Is POMIS the Right Choice for You?
The Post Office Monthly Income Scheme (POMIS) stands out as a reliable, low-risk investment vehicle offering fixed monthly income. It’s especially suitable for retirees, homemakers, and conservative investors seeking safety and liquidity. While the interest is taxable, the peace of mind and stability it offers make it a strong contender in your investment portfolio.
If you’re seeking assured returns and want to avoid market volatility, POMIS in 2025 is a smart and safe bet.
Frequently Asked Questions (FAQs)
Q1: Can I invest in POMIS online?
Currently, POMIS investment cannot be done online. You must visit a post office to open the account.
Q2: Is the interest from POMIS taxable?
Yes, the interest earned is taxable under “Income from Other Sources.” However, there is no TDS deduction.
Q3: Can NRIs invest in the Post Office Monthly Income Scheme?
No, NRIs are not eligible to invest in POMIS.
Q4: Can I transfer my POMIS account to another city?
Yes, POMIS accounts can be transferred between post offices anywhere in India.
Q5: What happens if I don’t withdraw after maturity?
The money remains in the account and continues to earn savings account interest (lower rate) until withdrawn.
Q6: Can I open multiple POMIS accounts?
Yes, multiple accounts can be opened, but the total investment limit across all accounts must not exceed ₹9,00,000 for an individual.