What is the Post Office Monthly Income Scheme?

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What is the Post Office Monthly Income Scheme?

Post Office Monthly Income Scheme (POMIS) is a government-backed scheme managed by the India Post. It is a popular savings scheme that provides a fixed monthly income to investors. 

If you’re a regular investor or a senior citizen planning to make an investment, POMIS is one of the best options available for you. In this blog post, we shall discuss everything you need to know about the POMIS.

What is POMIS?

POMIS full form is Post-Office Monthly Income Scheme. This scheme, offered by India Post, allows individuals to invest a lump sum amount and receive guaranteed monthly interest payouts. The scheme operates under the authority of Government of India. Therefore, the investors do not have to worry about the safety and reliability of the scheme. For individuals seeking regular income but have a low risk appetite, the POMIS scheme is suitable.

The interest earned under POMIS can be credited directly to your Post-Office Savings Account through the auto-credit facility or transferred to your bank account via Electronic Clearing Service (ECS). The POMIS interest rate for FY 2025-26 is 7.40% per annum.

Benefits of POMIS Scheme

The benefits of POMIS scheme include the following:

• Since the government backs this scheme, your investment remains safe and secure.

• POMIS is a low-risk investment scheme as the money you invest is not subject to market risks.

• This scheme is especially suitable at the time of inflation since it provides investors with a stable monthly income.

• POMIS allows an individual to open more than one account in their name, subject to certain restrictions. 

• The scheme makes money transactions, including deposit and withdrawal, smooth and easy. 

• It allows you to open a joint account with 2 or 3 individuals. In this case, a total investment of up to Rs. 15 lakhs can be made in the POMIS account.

• POMIS allows the investor under the scheme to nominate a beneficiary who can claim the benefits and corpus in case of the investor's demise during the account’s term. 

Post Office MIS Scheme Eligibility

The eligibility criteria for Post Office MIS is as follows:

• The individual must be a citizen of India. 

• NRIs are ineligible for the scheme.

• In case of a minor or an individual with unsound mind, a guardian for account opening.

• A minor aged 10 years or above can open an account on their own name.

Documents Required to Open a POMIS Account

To open a POMIS account, you will be required to provide certain documents to the Post Office. These documents include the following:

• Proof of Identity: Government-issued IDs, such as Passport, Voter ID card, Driving License and Aadhaar card.

• Proof of Address: Utility bills, such as water bills and electricity bills.

• Proof of Date of Birth (in case of a minor account): Birth certificate is essential for providing proof of date of birth.

• Other Documents: 2 passport size photographs and cheque for making initial deposit.

How to Open a POMIS Account

The process for opening a POMIS account requires completion of the following steps:

Step 1: It is mandatory to open a post-office savings account. If you don’t have this account, then you need to open it at the post-office.

Step 2: You must collect the POMIS application form from your Post-Office. You can also download the application from the official website of the Post-Office.

Step 3: At the post office, you need to submit the duly filled form along with all the required documents and their copies. Make sure to carry the original documents for verification.

Step 4: On the form, get the signatures of the witness or nominee.

Step 5: Using cash or cheque, make the initial deposit for POMIS. If the initial deposit is made via post-dated cheque, the date mentioned on this cheque will be the date of account opening.

Step 6: Once the account is opened, an executive at the Post-Office will provide you with the account details.

POMIS Scheme Premature Withdrawal Rules 

Here are the POMIS premature withdrawal rules you need to know about:

• Withdrawal is not permitted within the 1st year from the deposit date.

• If you close the account after 1 year but before 3 years, then 2% of principal will be deducted and the remaining balance will be paid to you.

• If you close the account after 3 years but before 5 years, then deduction will be 1% of the principal and the rest will be paid.

• For account closure before maturity, you need to file the prescribed form along with your passbook at the concerned Post Office.

Conclusion

POMIS stands for Post Office Monthly Income Scheme. It is a low-risk scheme backed by the Indian government. It provides investors with a monthly payout. For FY 2025-26, the POMIS interest rate is 7.40% p.a. If you want to invest in this scheme, you must open a POMIS account by visiting a Post Office branch near you. 

Frequently Asked Questions (FAQs)

Q1. When was the POMIS introduced? 

A. It was introduced in 1987.

Q2. What is the Post Office MIS Scheme rate of interest?

A. The Post Office MIS Scheme rate of interest for FY 2025-26 is 7.40% per annum.

Q3. What is the POMIS lock-in period?

A. POMIS lock-in period is 5 years.

Q4. Can I withdraw money from POMIS before one year?

A. No, you cannot withdraw from the POMIS before one year. 

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