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Post Office Monthly Income Scheme (POMIS)

Details about who all can and how can one invest in to Post Office Monthly Income Scheme (POMIS) along with other benefits


28 Dec 2010

post office monthly income scheme (POMIS)

Post Office Monthly Income Scheme (POMIS)  is meant for those investors who want to invest a lump sum and earn interest on monthly basis for their livelihood. The scheme is, therefore, a boon for retired or handicapped persons. They would get an amount every month and they can live on it. A good number of people go for this scheme on reaching retirement age. They just put their saving in a post office under this head and then they can just enjoy their life with family and friends while the post office, thanks to their deposited money, would take care of their monthly income.

Who Can Purchase

POMIS can be purchased by an adult who is a resident in india, It can also be bought jointly or by an adult on behalf of a minor. A minor of minimum ten years

Investment Amount

Minimum invested amount has to be Rs 1500. Maximum amount is Rs. 4.50 lacs for single account and Rs Rs. 9.00 lacs for joint account.Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian

Maturity period

It is a six years account.

Interest Rate

8% per annum payable monthly. Monthly interest can be credited to the savings bank account in the same post office.

Nomination facility

Nomination facility is available.


Account is transferable to any post office in India,



Premature Encashment

Premature encashment facility is available after one year. Premature closure of account after 1 year to 3 years penalty of 2.00% of the deposit amount will be deducted and the balance is paid off. Similarly, deduction of 1% of the deposit amount if account is closed prematurely at any time after three years.

Deduction u/s 80C

No Income Tax Exemption under section 80 C is available for POMIS

Interest Taxability

 Interest received will be taken as Income for Income Tax purposes, but no TDS will be deductible.

Other features

Deposits are exempt from Wealth tax.

There is a facility of reinvestment on maturity of an account.

5% maturity bonus is also given.

Maturity proceeds not drawn are eligible to earn savings account interest rate for a maximum period of two years.

Minors investment is not clubbed with the guardian.


44.58 Lakh satisfied customers till Oct 2020
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