Post Office Monthly Income Scheme:India Post offers several savings schemes, and one of the most popular among them is the Post Office Monthly Income Scheme (POMIS). This scheme provides a reliable source of fixed monthly income, making it an ideal choice for individuals seeking regular returns without market risks. With the right investment, you can earn up to ₹20,500 monthly for 5 years under this scheme.
Post Office Monthly Income Scheme 2025
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings plan that allows individuals to earn a fixed monthly income by investing a lump sum amount. The scheme is risk-free, offers assured returns, and has a maturity period of 5 years.
| Scheme Name | Post Office Monthly Income Scheme (POMIS) |
| Interest Rate | 7.4% p.a. (January-March 2025 quarter) |
| Tenure | 5 years |
| Minimum Deposit | ₹1,000 |
| Maximum Deposit (Single) | ₹9 lakh |
| Maximum Deposit (Joint) | ₹15 lakh |
| Payout Frequency | Monthly |
| Risk Factor | Risk-free, backed by the Government of India |
How to Earn ₹20,500 Monthly?
To earn ₹20,500 per month, you must invest the maximum allowable amount in a joint account under POMIS.
- Investment Required: ₹15,00,000 (maximum limit for a joint account).
- Interest Rate: 7.4% per annum.
- Monthly Payout Calculation: Monthly Income=(Principal Amount×Interest Rate)÷12\text{Monthly Income} = \left(\text{Principal Amount} \times \text{Interest Rate}\right) \div 12 Substituting the values: Monthly Income=(15,00,000×7.4%)÷12=₹20,500\text{Monthly Income} = \left(15,00,000 \times 7.4\%\right) \div 12 = ₹20,500
This income will continue for the 5-year tenure, providing a total return of ₹12,30,000 in monthly payouts, in addition to the return of your principal investment at the end of the term.
Eligibility Criteria for Post Office Monthly Income Scheme
- Resident Status:
Only Indian residents can open a POMIS account. NRIs are not eligible. - Age Requirement:
- The scheme is available for individuals above 18 years of age.
- Minors aged 10 and above can open an account with a guardian.
- Account Type:
- Individual accounts can have a maximum deposit of ₹9 lakh.
- Joint accounts (up to 3 adults) can have a maximum deposit of ₹15 lakh.
How to Open a Post Office Monthly Income Scheme Account?
Follow these steps to open a Post Office Monthly Income Scheme account:
- Visit the Nearest Post Office:
- Collect the POMIS application form.
- Submit Required Documents:
- Identity proof (Aadhaar card, PAN card, voter ID, etc.)
- Address proof (utility bill, passport, etc.)
- Passport-sized photographs
- Fill Out the Application Form:
- Provide details like name, address, nominee details, and deposit amount.
- Deposit the Amount:
- Make a lump sum deposit (minimum ₹1,000).
- Account Activation:
- Once the application is processed, you’ll receive your POMIS passbook.
Benefits of Post Office Monthly Income Scheme
- Guaranteed Returns: The scheme offers a fixed monthly income, ensuring financial stability.
- Government-Backed Security: Being a government-backed scheme, it is entirely risk-free.
- Affordable Minimum Deposit: Start investing with as little as ₹1,000.
- Nomination Facility: Nominate beneficiaries to receive benefits in case of unforeseen events.
- Flexible Account Options: Open an individual or joint account based on your requirements.
Important Rules for Post Office Monthly Income Scheme
- Premature Withdrawal:
- Allowed after one year with a penalty.
- 2% penalty if withdrawn between 1 and 3 years.
- 1% penalty if withdrawn after 3 years but before maturity.
- Tax Implications:
- The monthly interest earned is taxable.
- No TDS is deducted, but the investor must report the income while filing taxes.
- Reinvestment Option:
- Upon maturity, the principal amount can be reinvested in another POMIS account or transferred to another savings scheme.
Why Choose Post Office Monthly Income Scheme in 2025?
- Stable Interest Rates: The scheme offers consistent returns, unaffected by market volatility.
- Regular Income: Ideal for retirees, homemakers, and individuals seeking supplementary income.
- High Investment Limits: Joint accounts allow higher investment limits for greater monthly returns.
Other High-Yield Post Office Schemes to Consider
| Scheme Name | Interest Rate | Tenure | Purpose |
|---|---|---|---|
| Senior Citizens Savings Scheme (SCSS) | 8.2% | 5 years | Regular income for senior citizens |
| Kisan Vikas Patra (KVP) | 7.5% | 9 years, 4 months | Long-term wealth accumulation |
| National Savings Certificate (NSC) | 7.7% | 5 years | Tax-saving and safe investment |
FAQs
Yes, you can open multiple accounts as long as the total deposit across all accounts does not exceed ₹9 lakh (individual) or ₹15 lakh (joint).
No, the monthly income earned is taxable as per your income tax slab.
You can withdraw the principal amount or reinvest it in another Post Office Scheme.
Yes, you can transfer your account to any post office in India.
Yes, it’s an excellent option for senior citizens seeking regular income with zero risk.
The Post Office Monthly Income Scheme (POMIS) is a reliable and secure way to earn regular income with guaranteed returns. For those looking to generate ₹20,500 monthly for 5 years, this scheme offers an excellent investment opportunity with minimal risk. By investing in POMIS, you not only ensure financial stability but also benefit from government-backed security.
Evaluate your financial goals, invest the required amount, and enjoy consistent monthly income with this excellent Post Office Scheme.