Post Office Monthly Income Scheme (POMIS) is one of the most trusted government-backed savings options in India. Known for its safety and stability, this scheme currently offers an interest rate of 7.4% per annum (FY 2025-26). It is designed for investors who want regular and fixed monthly income with very low risk, making it an ideal option for retirees and those with secure savings.
This scheme offered by India Post can be started with a minimum investment of Rs 1,000. In this, the maximum limit for a single account is Rs 9 lakh and for a joint account, the maximum limit is Rs 15 lakh, the tenure of which is fixed at five years. Investors deposit a lump sum in one go and receive monthly interest payments throughout the tenure, providing them with a steady stream of income.
How much interest do you get?
Under the current rules, an individual can invest up to Rs 9 lakh in a single MIS account and up to Rs 15 lakh in a joint account. This scheme currently gives 7.4 percent annual interest, which is paid every month. The interest rate is revised by the government every three months.
How much total interest will be received from Post Office MIS in 5 years?
Since the maturity period of this scheme is 5 years, the total interest earned during the entire tenure can be quite high. The monthly income will be Rs 9,250, and the total number of months is 60. Therefore, at the current payment level, the total interest income in 5 years will be approximately Rs 5.55 lakh.
Can I close ahead of time?
Premature closure of Post Office MIS account is not allowed before completion of one year from opening. If the account is closed between one to three years, 2 percent of the deposit amount is deducted as penalty. If the account is closed after completion of 3 years, 1 percent of the deposit amount is deducted.
Can you open MIS account in any bank?
No, Post Office Monthly Income Scheme is operated only through the Postal Department. Investors can open this account only in post offices and not through banks.
Is post office MIS interest taxable?
Investments made in Post Office MIS are not eligible for tax deduction under the old tax regime. The monthly interest earned is fully taxable as per the income tax slab of the investor. However, the post office does not deduct TDS on MIS interest payments.
Features of Post Office Monthly Income Scheme
- Transfer facility: You can easily transfer your POMIS account from one post office to another, anywhere in India, without losing any benefits. This feature makes this plan convenient even when you change your place of residence.
- Low risk investment: The scheme is fully supported by the Government of India, so it is not affected by stock market fluctuations.
- Guaranteed Returns: POMIS offers fixed and guaranteed returns. Your principal amount remains safe, making it a reliable option for risk-averse investors.
- Joint Account Option: This scheme allows opening of joint accounts with up to three account holders. In such cases, the maximum investment limit is Rs 15 lakh, making it suitable for families.
- Reinvestment option: After maturity, investors can reinvest that amount for the next 5 years to continue receiving monthly income.
How will POMIS be prepared monthly?
The scheme pays interest every month based on the amount invested and the applicable annual interest rate (currently 7.4%). The total annual interest is divided into 12 equal monthly installments, thereby ensuring a fixed income.
single account
Investment amount: Rs 9,00,000
monthly income: Rs 5,550
Total interest in 5 years: Rs 3,33,000
joint account
Investment amount: Rs 15,00,000
monthly income: Rs 9,250
Total interest in 5 years: Rs 5,55,000
Post Office Monthly Income Scheme is especially useful for those who prefer safety rather than high-risk investments. With guaranteed returns and regular monthly income, it helps investors manage their household expenses and plan their financial stability with ease.
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