Post Office Monthly Scheme – In a time of financial uncertainty, securing a stable and guaranteed monthly income has become a top priority for many Indian families—especially retirees, homemakers, and low-risk investors. That’s where the Post Office Monthly Income Scheme (POMIS) steps in with a golden opportunity. By investing strategically before the new deadline of 15 July 2025, account holders can lock in a fixed monthly income of ₹9,250, which continues uninterrupted for 5 years. What’s more, the interest rates are government-backed, tax-efficient, and not subject to market fluctuations. The scheme has seen a surge in interest ever since the July 2025 revision confirmed enhanced deposit limits and a fixed return of 7.4% per annum. Whether you’re a senior citizen planning for retirement or a working individual seeking passive income, this scheme delivers reliability and peace of mind. But to get the full benefits, applications must be submitted before the July 15 cutoff date. Let’s explore how the scheme works, who is eligible, the investment tables, how much to deposit, and the benefits and risks involved.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme is a savings plan run by India Post, aimed at providing regular monthly interest payouts to investors. It has a fixed tenure and is perfect for risk-averse individuals.
- Offers 7.4% annual interest, paid monthly
- Lock-in tenure of 5 years
- Government-backed, no market risk
- Maximum deposit limit: ₹9 lakh for individuals, ₹15 lakh for joint accounts
- Early withdrawal possible with penalty after 1 year
- Available in all post offices nationwide
How Much Income Can You Earn with POMIS in 2025?
Your monthly income depends on how much you invest. Below is a table showing the approximate fixed monthly payout based on the current 7.4% annual interest rate.
Monthly Income Table for Single Account (Max ₹9 Lakh)
| Investment Amount | Annual Interest (₹) | Monthly Payout (₹) |
|---|---|---|
| ₹1,00,000 | ₹7,400 | ₹616 |
| ₹2,00,000 | ₹14,800 | ₹1,233 |
| ₹3,00,000 | ₹22,200 | ₹1,850 |
| ₹4,00,000 | ₹29,600 | ₹2,466 |
| ₹5,00,000 | ₹37,000 | ₹3,083 |
| ₹7,50,000 | ₹55,500 | ₹4,625 |
| ₹9,00,000 | ₹66,600 | ₹5,550 |
Monthly Income Table for Joint Account (Max ₹15 Lakh)
| Investment Amount | Annual Interest (₹) | Monthly Payout (₹) |
|---|---|---|
| ₹6,00,000 | ₹44,400 | ₹3,700 |
| ₹8,00,000 | ₹59,200 | ₹4,933 |
| ₹10,00,000 | ₹74,000 | ₹6,166 |
| ₹12,00,000 | ₹88,800 | ₹7,400 |
| ₹13,50,000 | ₹99,900 | ₹8,325 |
| ₹14,50,000 | ₹1,07,300 | ₹8,941 |
| ₹15,00,000 | ₹1,11,000 | ₹9,250 |
Eligibility & Rules for the POMIS Scheme
To apply for the Post Office Monthly Income Scheme, applicants must meet the following eligibility criteria:
- Must be an Indian resident (NRI not allowed)
- Minimum age: 10 years (minor account allowed)
- Joint account allowed (up to 3 adults)
- PAN card and Aadhaar are mandatory for KYC
- Nomination facility available
Key Rules:
- Only one account per individual in single capacity
- Premature closure after 1 year allowed with penalty
- No compounding of interest—interest is paid out monthly
- No TDS (Tax Deducted at Source) on interest income
How to Open a Post Office Monthly Income Account
Opening a POMIS account is simple and can be done by visiting your nearest post office. The process involves minimal documentation and is usually completed within 1–2 days.
Steps to Apply:
- Visit your local post office branch
- Collect and fill Form A (POMIS application form)
- Submit passport-size photo, PAN, Aadhaar
- Attach a cheque or deposit cash (minimum ₹1,000)
- Choose single or joint account type
- Provide nominee details
Benefits of the Post Office Monthly Scheme
Here’s why the POMIS scheme stands out for conservative investors:
- Fixed Income: Get a consistent monthly payout without market fluctuations
- Low Risk: Fully backed by the Government of India
- High Limit: Joint account holders can invest up to ₹15 lakh
- No TDS: Interest is tax-free at source (subject to income tax rules)
- Flexible Premature Closure: Option to close after 1 year (with penalty)
Major Advantages Over Other Fixed Income Plans
| Feature | POMIS | FD (Bank) | SCSS |
|---|---|---|---|
| Interest Rate | 7.4% (monthly) | 6.5–7.25% | 8.2% (quarterly) |
| Risk Level | Very Low | Low | Very Low |
| Tenure | 5 Years | 1–10 Years | 5 Years |
| Max Deposit | ₹9L/₹15L | Varies | ₹30L (senior citizen) |
| Tax Deducted at Source (TDS) | No | Yes (if > ₹40K) | Yes |
| Early Withdrawal | After 1 Year | Yes | After 1 Year |
What Happens After Maturity of POMIS Account?
Once your 5-year term is over, you can either withdraw the principal amount or reinvest in the scheme again based on prevailing interest rates.
Options After Maturity:
- Withdraw total investment + last month’s interest
- Reinvest in fresh POMIS account
- Transfer funds to savings or recurring deposit account
- No automatic renewal—action required post maturity
Deadline Alert: Why You Should Apply Before 15 July 2025
With interest rates set to be reviewed by the Finance Ministry in August 2025, financial experts warn that the 7.4% return may be revised downward. Hence, applying before the July 15 deadline ensures:
- Lock-in of existing higher interest rate
- Full benefit for 5 years without rate cut risk
- Early payout cycle starts from August 2025
Time-Sensitive Benefits:
- Priority processing for early applicants
- Beat upcoming market fluctuations
- Use this to plan for children’s education or household expenses
The Post Office Monthly Income Scheme remains one of India’s safest and most rewarding fixed-income plans, especially for risk-averse savers, retirees, and families seeking predictable monthly returns. With the deadline of 15 July 2025 looming and the interest rate potentially changing soon, now is the ideal time to invest. Whether you’re looking to secure ₹9,250/month or any fixed payout tailored to your investment capacity, this scheme provides the reliability and peace of mind few others can match. Take the smart route—visit your nearest post office and open your POMIS account before the window closes.
FAQs
Q1. Can NRIs invest in the Post Office Monthly Income Scheme?
No, NRIs are not eligible to open or hold a POMIS account.
Q2. Is the ₹9,250 monthly payout guaranteed for 5 years?
Yes, the interest is fixed at 7.4% and the monthly payout is guaranteed throughout the 5-year tenure.
Q3. Can I close my account before 5 years?
Yes, premature closure is allowed after 1 year with a small penalty of 1–2% on the deposit amount.
Q4. Is there any tax benefit on POMIS?
There is no Section 80C deduction, but the interest is not subject to TDS. However, it is taxable as per your income slab.
Q5. Can I reinvest the amount after maturity?
Yes, you can withdraw or reinvest the principal amount in a new POMIS account based on the new interest rates at that time.