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What Are The Benefits Of Post Office Monthly Income Scheme For Senior Citizens?

The Department of Posts (DOP) regulates the Post Office Monthly Income Scheme (POMIS), which is a monthly savings plan. This savings plan is governed by India's central government. Like other post office modest savings schemes, it aims to deliver a monthly income to small and medium private investors. This savings plan is a better choice for investors looking for a steady stream of income and a low-risk investment.

The Post Office, like any other nationalised bank, has long been a safe haven for individuals for money deposits and transactions. This particularly holds true for the senior citizens in the country. Branches of the Post Office around the country offer a variety of savings plans. To know and understand 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. The POMIS investing plan pays monthly interest on the amount deposited. An individual has the option of withdrawing at one’s leisure or setting up an automated withdrawal and credit to their respective savings account.
  2. An individual may only deposit in multiples of Rs 1,000 into the POMIS account. As a result, the minimum deposit amount is Rs 1,000 in several ways.
  3. A single account holder account may contain a maximum deposit of Rs 4.5 lakh, while a joint account can have a maximum deposit of Rs 9 lakh.
  4. A maximum of Rs 4.5 lakhs can be invested in a single account or a joint account by an individual.
  5. From April 1, 2020, the interest rate on the POMIS investment plan will be 6.6% per annum, payable monthly.
  6. The account is locked in for 5 years from the date of opening.
  7. After a year has passed, an individual can withdraw. On the other hand, premature withdrawals are subject to a fine. If an individual withdraws before 3 years, they will be charged a 2% fee. Furthermore, if an individual removes after three years, the price is only 1%.

Eligibility Criteria Of Post Office Monthly Income Scheme

POMIS was created for risk-averse investors who avoid equities instruments and are looking for a reliable source of monthly payments. It is best suited to the demands of older folks and retirees who have just entered the no-paycheck zone and are willing to make a one-time investment with the sole intention of obtaining a secure, regular income in order to maintain their standard of living. The sole requirement is that the investor be a permanent resident of India. NRIs are unable to participate in the Post Office Monthly Income Scheme. The nicest part about this post office savings plan is that the entrance age is capped at ten years. As a result, a kid as young as ten years old can register a POMIS account in his name. A minor's maximum investment limit is set separately.

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 Senior Citizen Savings Scheme is available at the Post Office (SCSS).
  2. The annual interest rate of Senior Citizens is 7.4 percent.
  3. Interest is paid quarterly, starting on the date of deposit and ending on March 31/June, 30/September, 30/December 31.
  4. In all SCSS accounts created by individuals, the minimum deposit must be Rs 1000 and in multiples of 1000, with a maximum limit of Rs 15 lakh in all SCSS accounts opened by an individual.
  5. The advantage of section 80C of the Income Tax Act of 1961 applies to investments made under this plan.


The post office depository service offers a variety of investment options with guaranteed returns. These plans are all backed by a sovereign guarantee, indicating that this is a government-supported investment opportunity. As a result, compared to equity shares and many fixed-income choices, these plans are safer investment options.

Do read - Shedding Light On SBI Annuity Deposit Scheme

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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