The Post Office Monthly Income Scheme (POMIS) is one of the safest and most reliable investment options in India, offering guaranteed monthly income. For the January to March 2025 quarter, the Government of India has maintained the interest rate at 7.4% per annum, providing an attractive return for investors looking for secure, fixed income options.
POMIS is particularly popular among retirees, risk-averse investors, and individuals seeking a steady income stream. In this article, we will break down everything you need to know about this scheme, including its features, benefits, eligibility, and a step-by-step guide on how to invest.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme designed to provide investors with fixed monthly interest payouts. It is an ideal investment for individuals who prefer a low-risk, stable income source without market fluctuations.
Why Choose POMIS?
- Safety: Backed by the Government of India, ensuring low risk.
- Fixed Income: Guaranteed monthly returns at a stable interest rate.
- Ease of Access: Available at all post offices across India.
- Better Returns than Savings Accounts: Interest rate is higher than most fixed deposits and savings accounts.
POMIS Interest Rate for January-March 2025
The Government of India revises small savings schemes’ interest rates every quarter. For January to March 2025, the interest rate remains at 7.4% per annum, which translates to ₹740 per ₹1 lakh investment per month.
Comparison with Other Savings Schemes
| Scheme | Interest Rate (Jan-Mar 2025) | Tenure |
| POMIS | 7.4% per annum | 5 years |
| Senior Citizen Savings Scheme (SCSS) | 8.2% per annum | 5 years |
| Public Provident Fund (PPF) | 7.1% per annum | 15 years |
| Fixed Deposits (FDs) – Banks | 6.5% – 7% (Varies) | 1-5 years |
Who Can Invest in POMIS?
Eligibility Criteria:
- Indian residents (NRIs are not eligible)
- Individuals above 10 years (minors can open an account with a guardian)
- Joint accounts (up to 3 adults can invest together)
Investment Limits:
- Minimum Deposit: ₹1,000
- Maximum for a Single Account: ₹9 lakh
- Maximum for a Joint Account: ₹15 lakh (divided equally among holders)
How to Open a POMIS Account?
Opening a Post Office Monthly Income Scheme (POMIS) account is simple. Follow these steps:
Step 1: Visit Your Nearest Post Office
Find the nearest post office that offers POMIS.
Step 2: Collect & Fill the Application Form
- Forms are available at the post office or online on the India Post website.
Step 3: Submit Required Documents
- KYC Documents: Aadhaar, PAN Card, Voter ID, or Passport
- Address Proof
- Passport-size Photographs
Step 4: Make the Deposit
- Deposit can be made via cash, cheque, or demand draft.
- Ensure the amount is within the investment limits.
Step 5: Get Your Passbook
- Upon successful processing, you will receive a POMIS passbook, which records all transactions.
POMIS Interest Payout & Taxation
Interest Payout Process
- Interest is credited monthly to the investor’s savings account.
- You can opt for automatic credit to a bank/post office account.
Taxation on POMIS
- Interest earned is fully taxable under income tax.
- No TDS (Tax Deducted at Source) is applied.
- Investors in higher tax brackets should plan their taxes accordingly.
Premature Withdrawal & Account Closure
| Period | Penalty on Premature Closure |
| Before 1 year | Not Allowed |
| 1-3 years | 2% deduction from the deposit amount |
| 3-5 years | 1% deduction from the deposit amount |
Post Office Monthly Income Scheme Interest Rate (FAQs)
1. Can I open multiple POMIS accounts?
Yes, but the total balance across all accounts should not exceed ₹9 lakh (single) or ₹15 lakh (joint).
2. What happens if I don’t withdraw the monthly interest?
The interest remains in the account without earning additional interest.
3. Can I transfer my POMIS account?
Yes, the account can be transferred to any post office in India.
