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Post Office Monthly Income Scheme- Interest rates, Features, Eligibility and Investment


The Post Office Monthly Income Scheme (POMIS) is a small savings scheme supported by the Government of India that allows investors to set aside (save) a set amount each month. Following that, interest at the applicable rate is added to this investment and paid out to the depositor(s) on a monthly basis. The Post Office Monthly Income Scheme is one such scheme in which you invest a set amount and receive a fixed interest payment every month. Here is all you need to know about the post office monthly investment scheme.


Features of POMIS

Features of POMIS

  • If you open a Monthly Income Scheme account at a post office, you will be unable to withdraw any funds for the first five years.
  • Transfer of a POMIS account if you are moving to a different city in India. Your Post Office Monthly Income Scheme investment corpus and interest disbursement will be carried forward to such a post office.
  • A POMIS minor account in the child's name can be opened. Minors must be at least ten years old to participate in the Post Office Monthly Income Scheme. After 18 years, he or she may withdraw the funds.
  • The option of withdrawing your investment's monthly interest via automatic transfer to your savings account via PDCs or ECS. If you have a POMIS account at a CBS Post Office, you can transfer the interest to any other CBS-centric savings account.
  • If you withdraw your investment corpus before the lock-in period expires, you will be penalised based on the time of redemption.
  • Any amount in multiples of Rs. 100 is permissible as an investment.
  • The interest amount is not subject to TDS, but it is also ineligible for Section 80C tax breaks.


  • Account can be opened by the resident of India.
  • This system does not cover non-resident Indians.
  • Anyone over the age of 18 can open an account.
  • You can open an account on behalf of a minor aged 10 or older. Children will be able to access the fund once they reach the age of 18.
  • A minor must apply for conversion of the account in his name once he reaches the age of majority.
POMIS Interest Rate and Investment

POMIS Interest Rate and Investment

Interest rates on the Post Office Monthly Income Scheme are 6.7% per annum, payable monthly. The minimum deposit is Rs. 1,000, and deposits in multiples of Rs. 1,000 are accepted. The maximum investment limit in a single account is INR 4.5 lakh and INR 9 lakh in a joint account. Individuals can invest in MIS up to INR 4.5 lakh (including his share in joint accounts). When calculating an individual's share in a joint account, each joint holder has an equal share in each joint account.

Pre-mature closure of account

Pre-mature closure of account

  • No deposit may be withdrawn before one year from the date of deposit.
  • If the account is closed after one year but before three years from the date of opening, a 2% deduction from the principal will be made, and the remaining amount will be paid.
  • If the account is closed after three years but before five years, a 1% deduction from the principal will be made, and the remaining amount will be paid.
  • Accounts can be closed prematurely by submitting the prescribed application form along with the pass book to the concerned Post Office. ​


Accounts may be closed after 5 years from the date of opening by submitting a prescribed application form to the relevant Post Office along with the pass book.If the account holder passes away before the maturity date, the account may be closed and the funds returned to the nominee/legal heirs. Interest will be paid up to the month preceding the refund.


Read more about: post office
Story first published: Tuesday, December 6, 2022, 16:58 [IST]
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