What is Post Office Monthly Income Scheme (POMIS)?

Post Office Monthly Income Scheme (POMIS) also known as the National Savings Monthly Income Scheme Account is an investment option offered by India Post Office. It is a Government of India-backed small saving scheme that allows investors to generate a monthly income from their investment. POMIS is a popular saving tool for many in India as it has a low initial minimum deposit of ₹1000 and returns are guaranteed.

The POMIS scheme is open to all citizens. Investors or depositors can open an account under this scheme at any India Post Office. Account holders can also transfer the account to a different post office branch in case of a change in residence anywhere within India. The assured monthly payouts at a pre-determined interest rate also make it a suitable option for senior citizens who need regular income post-retirement.

Some of the features of the post office monthly income scheme are mentioned below:

Post office monthly income scheme has been designed for risk-averse investors who do not prefer investing in equity instruments. The POMIS scheme is most suited for senior citizens or retired people who are ready to invest a lump sum amount and wish to receive a regular monthly income.

However, there are a few prerequisites or criteria for POMIS that an individual has to meet :

• A post office monthly income scheme account can only be opened by a resident of India.
• NRIs cannot make investments under this scheme.
• Anyone above 18 years of age can open this account in his/her name
• You can open a minor account on behalf of your child if they are ten years or above. Once they turn 18, they can withdraw the deposit themselves.
• After reaching the age of majority, the minor must convert the scheme to his name.

Following are the prescribed documents needed to complete KYC (know your customer) requirements and subscribe to the scheme, along with the application form:

• Identity proof: Copy of any government-issued identification card such as passport/ ration card / PAN card / Aadhar card/driving license etc.
• Address proof: Copy of government-issued identity or utility bills.
• Passport-size photographs

Depending on the profits the government generates, the central government and finance ministry review the interest rate at the end of every quarter. For the months of October through December 2024, the post office monthly income scheme interest rate is 7.40% p.a.

Below is the table containing present and historical post office monthly income scheme interest rates.

The post office monthly income scheme is an effective investment tool that efficiently deploys the capital to earn or receive guaranteed monthly income. It is a risk-free source of investment and benefits retirees and pensioners who seek monthly income by investing a lump sum amount.