POMIS i.e., Post Office Monthly Income Scheme is one of several financial products and services offered by the Post Office, which is regulated by the Finance Ministry. The Department of Posts (DoP), popularly known as India Post, offers this type of investment scheme. As a result, it is quite reliable and a low-risk MIS that pays out consistently. Read below to check the detailed information related to the Post Office Monthly Income Scheme 2023 like Objectives, Features and Benefits, Minimum and Maximum Deposit Limits, Interest Rates, Eligibility Criteria, Required Documents, steps to open a Post Office Monthly Income Scheme Account, Consequences of the Scheme’s Early Withdrawal, and much more.
Post Office Monthly Income Scheme 2023 (POMIS)
India Post offers the Post Office Monthly Income Scheme (MIS), which is a form of term deposit account. The MIS scheme offers monthly interest and is ideal for people looking for a steady stream of income from their investments. Those interested in investing in monthly income plans offered by the Post Office can do so at any post office in their region. 1, 2021. The investment period is 5 years, and you can invest up to Rs. 4.5 lakh individually or Rs. 9 lakhs collectively. Its major goal is to safeguard assets. For the quarter ending September 30, 2021, the interest rate is 6.6 percent per annum, payable monthly.
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Highlights of POMIS Scheme
| Scheme Name | Post Office Monthly Income Scheme |
| Also known as | POMIS |
| Regulated By | Finance Ministry |
| Department | India Post also known as the Department of Posts (DoP), |
| State | All over India |
| Official Website | Click Here |
Objectives of Post Office Monthly Income Scheme
The Post Office Monthly Income Scheme is one of the highest-earning investment options available through the country’s Finance Ministry. It lets investors put money into a fixed-interest account for a set period and get a monthly payment. The government supports the post office MIS scheme, as it does all other Post Office schemes. The sovereign guarantee secures returns and eliminates risk from the scheme. Despite the great choice of investment options available today, the Post Office Monthly Income Scheme remains popular due to its guaranteed returns and reduced risks.
POMIS Features & Benefits
- Money Protection: Because this is a government-backed scheme, your money will be protected until maturity.
- Low-risk investment: Because you invested in a fixed income plan, your money is safe and not exposed to market dangers.
- Tenure: The Post Office MIS has a five-year lock-in period You can either withdraw or reinvest the money you put in when the programme comes to an end.
- Affordable deposit amount: You can begin with an Rs. 1,000 investments. however, you can invest in larger amounts depending on your financial situation.
- Returns are guaranteed: Every month, you earn money in the form of interest. Although the returns do not beat inflation, they are greater than other fixed-income assets such as FDs.
- Payment: You will receive your payment one month after making your first investment, rather than at the start of each month.
- Tax efficiency: Section 80C does not apply to your investment, and TDS is also not relevant.
- Ownership of several accounts: You have the option of opening many accounts in your name. The total deposit amount in all of them, however, must not exceed Rs.4.5 lakh.
- Joint account: You can open a joint account with two or three persons. In this case, this account can contain a total of up to Rs. 9 lakhs.
- Fund transfer: The investor can transfer funds to a recurring deposit (RD) account, which is a new function offered by Post Office.
- Accounts for the minor: It is possible to open a POMIS account for a minor. To be eligible for the MIS scheme, an applicant must be over the age of ten. When the individuals attain the age of 18, the account will be addressed to them.
- Withdrawal too soon: With the following criteria, premature withdrawal is permitted.
- Withdrawl before ist year: If you leave before the year is out, you won’t get any perks.
- Withdrawal between the first and third years: After deducting a 2% penalty, the entire investment amount is repaid.
- Withdrawal between the third and fifth years: The whole amount is refunded after a 1% penalty is deducted.
- Nominee: The investor can nominate a beneficiary (a family member) so that they can claim the benefits and corpus if the investor passes away during the account’s term.
- Ease of money/interest transaction: You may collect the monthly interest directly from the post office or get it transferred automatically to your savings account. Reinvesting the interest in a SIP is also a lucrative option.
- Reinvestment: You may reinvest the corpus post maturity in the same scheme for another block of 5 years to continue earning benefits.
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Minimum and Maximum Deposit Limits in POMIS Scheme
A minimum deposit of Rs. 1,500 is required to start a Post Office Monthly Income Scheme account. The deposit limit varies depending on who owns the account and what kind of account it is. The maximum deposit limitations are listed in the table below.
| Account Type | Amount |
| Single Account | 4.50 Lakh |
| Joint Account | 9 lakhs |
| Minor Account | 3 lakhs |
Post Office Monthly Income Scheme Interest Rates
- The interest rate on the Post Office Monthly Income Scheme is 6.6 percent per annum for a 5-year investment period.
- Senior citizens are exempt from paying interest, and those who fall into this category can invest in the Senior Citizens Savings Scheme (SCSS).
The revised interest rates on Post Office MIS programs, effective from May 1, 2021, are listed below:
| Tenure | Regular rate (per annum) | Senior Citizen Rate (per annum) |
| 5 years | 6.6% | NA |
Eligibility Criteria
Applicants who want to apply for the POMIS Scheme must fulfill the eligibility criteria put forward by the authorized department of the POMIS. The eligibility criteria for Post Office Monthly Income Scheme are as follows:
- Applicant must be a domicile of India
- NRIs are not eligible for this scheme’s advantages.
- A Post Office MIS program can be opened and operated by anybody over the age of 18.
- POMIS accounts are available to minors aged 10 and up. However, the minor applicant’s parents or guardians must open the account on their behalf
- . When the account holder reaches the age of 18, the account will be transferred by applying for a conversion of the account in his name.
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Required Documents List
While filling up the application form for Post Office Monthly Income Scheme, some important documents will be needed by the applicants, make sure to keep them handy. The documents required by the applicants are as follows:
- Applicant recent Passport size photograph.
- Any Identity proof like Aadhaar card, PAN card, Driving License, Passport, Voter ID card, etc (self-attested photocopies and originals for verification).
- Address proof (self-attested photocopies and originals for verification).
Who should consider investing in Post Office Monthly Income Scheme?
- Those who are willing to make long-term investments.
- Citizens who require a steady source of income.
- Those wishing to make a one-time investment.
- Those having a low-risk appetite
Steps to open a Post Office Monthly Income Scheme 2023 Account
To open a POMIS Account, applicants need to follow the below-given steps:
- First of all, visit your nearest post office.
- Now if you are a new user, then open a post office savings account.
- After that collect the Post Office Monthly Income Scheme application form from the concerned department.
- Fill in the application form with all the required details.
- Now paste the 2 recent passport-size photographs on the application form.
- After that attach all the photocopies of the required documents with the application form. Take original copies along with you for verification
- Now, you need a witness or nominee to sign the application form.
- Submit the duly filled application form along with the required documents at the Post Office.
- Now, make the initial deposit through check or cash. In the case of a post-dated check, the date on the check will be considered as the account opening date.
- Once the processing is successfully done, the concerned executive at the Post Office will provide you with the information of your newly opened POMIS Account.
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Post Office Monthly Income Scheme Calculator
The POMIS Scheme is Calculated by the below-given formula:
POMIS Monthly Interest = Amount Invested X Annual Interest Rate / 12
- For example, if the,
- Amount Invested is Rs.5 lakh.
- Annual Interest Rate is 6.6% p.a.
- Tenure is 5 years.
- Then the monthly interest earned will be Rs. 2,750 and the total interest earned for a tenure of 5 years will be Rs. 1.65 lakh.
Consequences of the Scheme’s Early Withdrawal
- A person who withdraws the amount before completing 1 year, will not receive any benefits.
- Premature withdrawals between the periods of 12 and 36 months after account opening are eligible for a 2% discount.
- Premature withdrawals made between 36 and 60 months after the account’s establishment are eligible for a 1% reduction.
| Time of POMIS withdrawal | Consequences of the Scheme’s Early Withdrawal |
| Withdrawal before completing 1 year | Zero benefits |
| Withdrawal between 1st and 3rd year | Entire deposit refunded after deducting a 2% penalty |
| Withdrawal between 3rd and 5th year | Entire corpus refunded with 1% penalty |
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Differentiating Post Office MIS with other Monthly Income Plans
When comparing Post Office MIS to other Monthly Income Plans, there are a few things to keep in mind.
| POMIS | Monthly Income Mutual Fund | Monthly Income Insurance |
| Guaranteed income at a rate of 6.6 percent every year | There is no certainty of income because it is invested in a 20:80 equity-to-debt ratio. | Annuities paid every month (rates vary based on premiums & period) |
| No TDS | TDS applied | Annuity is taxed |
| Fixed return rate | Floating rate based on market conditions | NA |
| Low-risk, thus it’s good for risk-averse people. | Appropriate for persons who have a high-risk appetite. | Double benefits of investment & insurance |
| Withdrawal is allowed after 12 months, although there is a penalty. | If you withdraw before the deadline, you will be charged an exit load. | Because this is a long-term investment, there are higher surrender charges. |
| Limit of Rs. 4.5 lakhs per account and Rs. 9 lakhs for a shared account | No investment limit | No investment limit |