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Features, Advantages, and Eligibility of the Post Office Monthly Income Scheme

Updated On Feb 24, 2022

Post Office Monthly Income Scheme is suitable for investors who are seeking fixed monthly income but are unwilling to take any risks in their investments. Thereby, it is more favourable for retired individuals or senior citizens who have landed into the no-more-paycheck zone. It is suitable for the investors seeking a one-time investment to serve the purpose of getting regular income to maintain the lifestyle. Investors willing to make long-term investments. Maximum Investment Amount in Post Office MIS. Though there is no limit on the number of accounts held by individuals, there are limits on the maximum amount that can be cumulatively invested across all POMIS accounts.

Current Interest Rates on Post Office Monthly Income Scheme

The Rate of interest is fixed and resettled by the Central Government and Finance Ministry every quarter depending on the returns yielded by Govt. bonds of the same tenure. The interest rate of POMIS for the period of April to September 2020 is 6.60%. 

Key Features of Post Office Monthly Income Scheme

Following are the key features of Post Office MIS plan:

  1. Maturity Period – Effective 1st December 2011, the maturity period of the scheme is 5 years (60 months) from the account opening date
  2. Number of Account Holders – POMIS accounts can be held individually or jointly (maximum three adult holders)
  3. Minimum and Maximum amount of deposit – The minimum limit for the amount of deposit in Post Office MIS plan is Rs. 1500 (and thereafter in multiples of 1,000)
  4. Nomination Facility – Nominee facility available and can be updated later after opening an account by a beneficiary (i.e. a family member) and can only claim the benefits after the demise of the account holder.
  5. Transfer Facility – POMIS accounts can be freely transferred from one Post Office to another.
  6. Post Office Monthly Income Scheme Bonus – No bonus available on accounts opened on or after 1st December 2011. Accounts opened earlier were eligible for a 5% bonus on deposit amount.
  7. Taxability – This scheme doesn’t come under the  Section 80C of the Income Tax and it is subject to taxation. Moreover, it has no TDS either.

Benefits of Post Office Monthly Income Scheme

  • On the use of cheque for account opening, date of cheque realization will be account opening date
  • In case of joint account, each account holder will hold equal share
  • No limit on the number of POMIS accounts held singly/jointly. Subject to max. cumulative balance criteria
  • A minor aged 10 years or above can avail the Post Office Monthly Income Scheme Account. On turning 18 years, he or she will be asked to convert his/her minor account to an adult account
  • The Post office credits proceeds directly to the investor’s post office savings account on a monthly basis by ECS/CBS
  • Post Office Monthly Income Scheme accounts can continue to earn interest for up to 2 years after account maturity if proceeds are not withdrawn by the investor. The applicable rate will be the same as that of a standard Post Office savings account

Documentation Required

  • Identity Proof: Copy of government issued ID such as Passport / Voter ID card / Driving License/Aadhaar, etc.
  • Address Proof: Government issued ID or recent utility bills.
  • Photographs: Passport size photograph.

How to Open a POMIS Account?

To open an account under Post Office Monthly Income Scheme, follow the steps given below-

  • First, you must have a Post Office savings account. Open the same account if you do not have one
  • Get an application form from your Post Office or Click here to download POMIS Account application form
  • Fill and submit the form along with the copies of all the required documents at the post office. Note: You must carry the original documents for verification
  • Mention the Name, DOB and Mobile no. of the nominees (if any)
  • All the documents should be self-attested
  • Proceed to make initial deposits (Minimum Rs.1500/-) via cash or cheque
  • How Does it Work- POMIS Calculation
  • After opening the account, the investors need to make the suitable investments. For single account, Rs. 1500 is the minimum amount of investment and Rs. 4,50,000 is maximum amount of investment
  • For a joint account, Rs.1500 is the minimum amount of investment and Rs.9,00,000 is the maximum amount of investment


You can withdraw the deposited amount from the account either from the post office or you can also get it credited in your savings account through ECS. You can follow the usual way and withdraw the amount monthly. However, the investor is allowed to let some amount accumulate and withdraw it all together after a few months.

Also read - PPF Calculator At The Post Office: Everything You Need To Know

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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