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Is Post Office Monthly Income Scheme For Senior Citizens Worth It?

Updated On Dec 15, 2021

The Post Office Monthly Income Scheme (POMIS), a monthly savings scheme, is regulated by the Department of Posts (DOP). This savings scheme is looked after by the central government of India. This scheme intends to provide small and medium private investors with a monthly income like other post office modest savings schemes. For individuals who want a predictable income stream and a low-risk investment, this savings plan is a better alternative for those individuals.

Individuals who have traditionally used the Post Office, like any other nationalised bank, as a safe haven for money deposits and transactions. This is especially true for the country's senior citizens. A range of savings programmes are available at Post Office branches around the country. To understand and know more on the Post Office Monthly Income Scheme (POMIS), read on.

Features Of Post Office Monthly Income Scheme

Following are some listed features of Post Office Monthly Income Scheme -

  1. On the amount deposited, the POMIS investment plan provides monthly interest. Individuals can withdraw whenever they want or set up an automatic withdrawal and credit to their respective savings account.
  2. Individuals can only make deposits into the POMIS account in multiples of Rs 1,000. As a result, in numerous methods, the minimum deposit amount is Rs 1,000.
  3. Joint account holders can deposit up to Rs 9 lakh, while a single account subscriber may only deposit up to Rs 4.5 lakh.
  4. An individual can invest a maximum of Rs 4.5 lakhs in a single account or a joint account.
  5. The interest rate on the POMIS investment plan will be 6.6 percent per year, payable monthly, beginning April 1, 2020.
  6. From the date of opening, the account is locked in for 5 years.
  7. An individual might withdraw once a year has elapsed. Premature withdrawals, on the other hand, are subject to a penalty. If an individual withdraws before 3 years, they will be penalized a 2% fine. Furthermore, the charge is just 1% if a person leaves after 3 years.

Eligibility Criteria Of Post Office Monthly Income Scheme

POMIS was designed for risk-averse individuals who prefer not to invest in stocks and want a steady stream of monthly income. It is ideally suited to the needs of senior citizens and retirees who have just crossed the no-paycheck zone and are prepared to make a one-time funding in order to get a stable, regular income in order to sustain their level of living. The only condition is that the investor became an Indian permanent resident. The Post Office Monthly Income Scheme is not open to non-resident Indians. The best feature about this post office savings plan is that it has a ten-year entry age limit. As a consequence, even a ten-year-old child may create a POMIS account in his name. The maximum investment limit for minors is determined independently.

Post Office Monthly Income Scheme Benefits For Senior Citizens

Following are some of the benefits of Post Office Monthly Income Scheme for senior citizens -

  1. The Post Office offers the Senior Citizen Savings Scheme (SCSS).
  2. Senior Citizens get an annual interest rate of 7.4 percent.
  3. Interest is paid on a quarterly basis, beginning on the day of deposit and ending on the 31st of March/June, 30th of September, and 30th of December.
  4. Individuals must deposit a minimum of Rs 1000 in multiples of 1000 in all SCSS accounts they open, with a maximum limit of Rs 15 lakh in all SCSS accounts they open.
  5. Section 80C of the Income Tax Act of 1961 provides a tax rebate for investments made under this scheme.


The post office depository service offers a choice of guaranteed investment possibilities. All of these initiatives are backed by a sovereign guarantee, suggesting that they are sponsored by the government. As a consequence, these plans are safer investment options than stock shares and many fixed-income options for individuals.

You may also like to read - Should Senior Citizens Buy Term Insurance?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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