The Post Office Monthly Income Scheme (POMIS) has become one of the most trusted savings options for people looking for safe and regular monthly income.
Backed by the Government of India, this scheme is especially popular among retired people and low-risk investors who do not want to depend on the stock market.
One of the biggest attractions of this scheme is that investors receive fixed monthly interest directly from their investment.
How Much Can You Invest in POMIS?
Under the current rules, an individual can invest:
Up to ₹9 lakh in a single account
Up to ₹15 lakh in a joint account
At present, the Post Office Monthly Income Scheme offers 7.4% annual interest, and the interest amount is paid every month.
The interest rate is decided by the central government and is revised every quarter.
How Much Monthly Income Will You Get on ₹15 Lakh?
If you invest ₹15 lakh in a joint Post Office MIS account, you can earn a fixed monthly income for 5 years.
Here is the complete calculation at the current 7.4% interest rate:
Investment Amount: ₹15,00,000
Annual Interest: ₹1,11,000
Monthly Income: Around ₹9,250
This means investors can receive nearly ₹9,250 every month without taking market risk.
Over the full 5-year period, the total interest earned can reach around ₹5.55 lakh.
Why Many Investors Prefer This Scheme
The biggest reason behind the popularity of POMIS is safety and guaranteed returns.
Unlike market-linked investments, returns in this scheme are fixed and predictable. This makes it a preferred option for senior citizens and families looking for regular monthly cash flow.
The scheme is also simple to understand and does not require any advanced financial knowledge.
Important Rules You Should Know
There are a few important conditions before investing in the scheme.
The account cannot be closed before completing 1 year from the date of opening.
If the account is closed:
Before 3 years: 2% of the deposit amount will be deducted
After 3 years: 1% of the deposit amount will be deducted
The remaining amount is returned to the investor.
Can You Open POMIS in a Bank?
No. The Post Office Monthly Income Scheme is operated only through India Post.
This account can be opened only at a post office and not in private or government banks.
Is There Any Tax Benefit?
POMIS investments do not qualify for tax deduction under Section 80C.
Also, the monthly interest earned is taxable according to the investor’s income tax slab.
However, the post office does not deduct TDS on the interest earned under this scheme.
For investors looking for steady monthly income with low risk, POMIS continues to be one of the safest and most reliable government-backed options available today.
