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Post Office Monthly Income Scheme - Features, Advantages, Eligibility etc

Published On Feb 23, 2022

Investors who want a guaranteed monthly income but don't want to take any risks in their investments might consider the Post Office Monthly Income Scheme. As a result, it is more advantageous for retirees or older citizens who have reached the end of their income. It is appropriate for investors looking for a one-time investment with the goal of generating recurring income to support their lifestyle. Investors that are willing to commit to a long-term investment strategy. The maximum amount of money that can be invested in post office management information systems. Individuals can have an unlimited number of accounts, however, the maximum amount that can be invested collectively across all POMIS accounts is limited.

Post Office Monthly Income Scheme - Features, Advantages, Eligibility etc

Features  of the Postal Service's Monthly Income Scheme

The following are the main characteristics of a Post Office MIS plan:

  • Maturity Duration – As of December 1, 2011, the scheme's maturity period is 5 years (60 months) from the date of account opening.
  • Account Holders - POMIS accounts can be held jointly or individually (maximum three adult holders)
  • Minimum and maximum deposit amounts - The minimum deposit amount in the Post Office MIS plan is Rs. 1500. (and thereafter in multiples of 1,000)
  • Nominee Facility - Nominee facility is available and can be amended later once a beneficiary (i.e. a family member) opens an account. Nominees can only collect benefits after the account holder's death.
  • Transfer Facility –  POMIS accounts can be moved freely from one Post Office to another.
  • Post Office Monthly Income Scheme Bonus - Bonuses under the Post Office Monthly Income Scheme are not available for accounts opened on or after December 1, 2011. Accounts that were opened earlier in the year were eligible for a 5% deposit bonus.
  • Taxability - This scheme is taxable because it does not fall under Section 80C of the Internal Revenue Code. It also doesn't have any TDS.

Advantages of the Post Office Monthly Income Scheme

  • When using a cheque to open an account, the date of cheque realization will be the account opening date.
  • In the event of a joint account, each account holder will have an equal stake.
  • There is no limit to the number of POMIS accounts that can be held individually or jointly. Subject to the cumulative balance maximum criterion
  • The Post Office Monthly Income Scheme Account is available to minors aged 10 and up. When he or she reaches the age of 18, he or she will be invited to switch his or her minor account to an adult account.
  • ECS/CBS deposits the post office credits directly into the investor's post office savings account on a monthly basis.
  • Post Office Monthly Income Scheme accounts can continue to earn interest for up to two years after maturity if the investor does not remove the money. 
  • The interest rate will be the same as that of a conventional Post Office savings account.

Documentation Required For Post Office Monthly Scheme

Identity Proof: A copy of a government-issued ID, such as a passport, voter ID card, driving licence, or Aadhaar card, is required.

Proof of address: a government-issued ID or recent utility bills.

Photographs: A passport-sized photograph is required.


You can withdraw the deposited amount from the account at the post office or have it credited to your savings account via ECS. You can withdraw the money on a monthly basis as usual. However, the investor is permitted to let some money build before withdrawing it all at once after a few months.

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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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