Post Office Scheme : In today’s uncertain economic landscape, having a secure and stable monthly income without active employment is a dream for many. Fortunately, India Post offers a government-backed investment plan that provides fixed monthly income with high safety and assurance. With a one-time investment of ₹5,55,555, individuals can earn ₹22,222 every month under the Post Office Monthly Income Scheme (POMIS) – an ideal plan for retirees, homemakers, and conservative investors seeking regular passive income.
What is the Post Office Scheme?
The Post Office Monthly Income Scheme is a savings scheme run by India Post and backed by the Government of India. It offers guaranteed monthly returns on a lump-sum deposit. The scheme is particularly suitable for people who want a predictable income stream without taking any market risks.
Key Features of POMIS:
- Assured monthly income
- Government-backed safety
- 5-year maturity period
- Option to reinvest or withdraw after maturity
- Transferable across post offices
How Does the ₹5,55,555 Investment Work?
If you invest ₹5,55,555 in the POMIS, based on the prevailing interest rate of 7.4% per annum (as of 2025), you will receive a fixed monthly income of ₹22,222.
Monthly Income Calculation Table:
| Particulars | Details |
|---|---|
| Scheme Name | Post Office Monthly Income Scheme (POMIS) |
| Investment Amount | ₹5,55,555 |
| Annual Interest Rate | 7.4% |
| Monthly Payout | ₹22,222 |
| Interest Payment Frequency | Monthly |
| Lock-in Period | 5 Years |
| Risk Level | Very Low (Govt. Backed) |
| Eligible Applicants | Individual, Joint, Minor via Guardian |
Eligibility Criteria for the Scheme
To invest in this scheme, individuals must fulfill the following conditions:
- Must be a resident Indian citizen
- Non-Resident Indians (NRIs) are not eligible
- Can be opened singly or jointly (up to 3 adults)
- A minor above 10 years can operate the account in their name
- A guardian can open an account for a minor or person of unsound mind
Benefits of Choosing POMIS for Passive Income
The Post Office MIS plan offers a range of benefits that make it an ideal option for risk-averse investors:
- Fixed and guaranteed returns, unaffected by market conditions
- Easy to open and operate at any India Post branch
- No TDS deducted on interest (though taxable under IT Act)
- Suitable for senior citizens looking for retirement income
- Capital is fully secure and managed by the Government of India
Additional Benefits at a Glance:
| Feature | Benefit Description |
|---|---|
| Monthly Interest | Earn interest every month on your deposit |
| Auto Credit | Monthly payout can be auto-credited to savings account |
| Nomination Facility | Nominee can be added at the time of account opening |
| Premature Withdrawal | Allowed after 1 year with nominal penalties |
| Joint Holding Option | Up to 3 individuals can open a joint account |
How to Open a POMIS Account?
Opening an account under this scheme is simple and can be done at any post office. Here’s the step-by-step guide:
- Visit your nearest post office with required documents.
- Collect and fill the POMIS account opening form.
- Submit KYC documents – Aadhaar, PAN, Passport-size photo, etc.
- Make the deposit amount via cheque/cash.
- Choose nominee and monthly payout option.
- Collect passbook and confirmation receipt.
Documents Required:
- Proof of Identity (Aadhaar, PAN, Voter ID)
- Proof of Address (Utility Bill, Aadhaar, Passport)
- Passport-size photographs
- Completed application form
- Nomination details (optional but recommended)
Who Should Consider This Scheme?
The scheme is ideal for individuals looking for low-risk investment options that offer guaranteed monthly income. Suitable investors include:
- Retired individuals needing steady post-retirement income
- Homemakers who want secure passive returns
- Parents looking to save for children
- People with lump-sum idle money in savings accounts
- Risk-averse investors not interested in market-linked products
Comparison with Other Fixed Income Options:
| Investment Option | Interest Rate | Risk Level | Monthly Payout Available | Tax on Interest |
|---|---|---|---|---|
| POMIS | 7.4% | Low | Yes | Yes |
| Bank FD | 6.0–7.0% | Low | Varies | Yes |
| Senior Citizens Savings Scheme | 8.2% | Very Low | Quarterly | Yes |
| Mutual Funds (Debt) | 5–9% (varies) | Medium | No fixed payout | Varies |
Important Rules & Limits You Must Know
It’s crucial to be aware of these conditions before investing:
- Maximum investment: ₹9 lakh (individual), ₹15 lakh (joint)
- Minimum investment: ₹1,000
- Premature withdrawal: Allowed after 1 year with deduction
- Interest not withdrawn does not earn additional interest
- Can be reinvested into another POMIS or other post office schemes upon maturity
The Post Office Monthly Income Scheme offers a safe, reliable, and government-backed way to earn fixed monthly income from a one-time investment. With an assured monthly return of ₹22,222 on a deposit of ₹5,55,555, it serves as an excellent option for individuals seeking financial stability without working.
It’s especially beneficial for senior citizens, homemakers, and risk-averse savers. While the interest earned is taxable, the safety and regularity of returns make it one of the most dependable income-generation tools in India.