Post Office Monthly Income Scheme (POMIS) Earn ₹1.11 Lakh
The Post Office Monthly Income Scheme (POMIS) Earn ₹1.11 Lakh. Senior citizen Post office monthly income scheme calculator, Post Office fixed deposit Monthly Income Scheme Calculator.
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Post Office Monthly Income Scheme interest rate for senior citizens, Post office monthly income Scheme minimum amount.
Post Office POMIS: Invest ₹15 Lakh Once, Earn ₹1.11 Lakh Every Year
The Post Office Monthly Income Scheme (POMIS) is one of India’s most trusted small savings plans, offering a government‑guaranteed fixed monthly income. Whether you’re a retiree looking for stability or a young investor seeking safe returns, POMIS provides a reliable way to turn a lump sum into steady cash flow.
Why Choose POMIS?
- Guaranteed Returns: Backed by the Government of India.
- Fixed Interest Rate: Currently 7.4% per annum (independent of market risks).
- Safe Investment: Principal is fully protected.
- Monthly Income: Interest credited every month for 5 years.
- Flexibility: Available in single or joint accounts.
How It Works
- Lock‑in Period: 5 years.
- Deposit Once: No recurring contributions required.
- Monthly Payouts: Interest credited monthly to your account.
- Extension Option: Scheme can be extended for another 5 years after maturity.
Single vs Joint Accounts
Joint Account (Max ₹15 Lakh)
- Deposit: ₹15,00,000
- Monthly Income: ₹9,250
- Annual Income: ₹1,11,000
- Total in 5 Years: ₹5,55,000 (interest) + ₹15,00,000 (principal returned)
Single Account (Max ₹9 Lakh)
- Deposit: ₹9,00,000
- Monthly Income: ₹5,550
- Annual Income: ₹66,600
- Total in 5 Years: ₹3,33,000 (interest) + ₹9,00,000 (principal returned)
POMIS vs Fixed Deposit (FD)
| Feature | POMIS | FD |
|---|---|---|
| Interest Payout | Monthly | Quarterly/Annual |
| Safety | Govt‑backed | Bank‑backed |
| Principal Protection | Yes | Yes |
| Lock‑in | 5 years | Flexible (varies) |
| Extension | 5 years | Renewal option |
Other Benefits
- Principal Safety: Full amount returned after 5 years.
- Minor Accounts: Can be opened in a child’s name (guardian operates if under 10 years).
- Ease of Opening: Simple process at any post office branch.
- Accessibility: Available across India, even in rural areas.
How to Open a POMIS Account
- Visit your nearest Post Office branch.
- Fill out the POMIS application form.
- Provide KYC documents (ID proof, address proof, photographs).
- Deposit the lump sum (cash, cheque, or demand draft).
- Start receiving monthly income from the following month.
Who Should Invest?
- Senior Citizens: For stable monthly income to cover expenses.
- Young Investors: For safe, risk‑free returns while planning financial goals.
- Families: Joint accounts maximize investment limits and monthly payouts.
- Conservative Investors: Those who prefer guaranteed returns over market‑linked risks.
Documents Required
- Proof of Identity: Copy of government issued ID such as Passport / Voter ID card / Driving License/Aadhaar, etc.
- Proof of Address: Government-issued ID or recent utility bills.
- Passport size photographs
Conclusion
The Post Office Monthly Income Scheme (POMIS) is a boon for risk‑averse investors. With guaranteed monthly payouts, protection of principal, and easy accessibility, it’s one of the best ways to ensure financial stability. Investing ₹15 lakh once can earn you ₹1.11 lakh every year, making it a powerful tool for both seniors and young investors.
FAQs
How Can I Withdraw Money From My POMIS Account After The Tenure?
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.
Can I Transfer POMIS Account?
Yes, your account can be transferred from one post office to another for absolutely free.
Can I Reinvest My Accumulated Amount In POMIS?
This is one of the best features of this scheme. It allows the investors to reinvest their accumulated money at the end of the tenure.
Is There Any Tax Deduction At Source?
No, there is no TDS (Tax Deduction at Source). But, the interests earned are taxable.
Is There Any Nomination Facility Available In POMIS?
Yes, the scheme allows you to select and appoint a nominee against the account who will get the accumulated amount in case of unfortunate demise.
Does The Scheme Offer Tax Rebate?
No, POMIS does not offer any tax benefits under Section 80C of the Income Tax Act, 1961.
Can A Senior Citizen Also Invest In POMIS?
Yes, infact POMIS is most suitable for senior citizens and retired persons.
From Where Can I Get The Withdrawal Form Of POMIS?
You can get the withdrawal form directly from the post office or download it from the India Post website.
What Happens When The Investor Does Not Withdraw The Funds After 5 Years?
After the maturity of 5 years, if the investor does not withdraw the amount, then he will continue to earn a simple interest for up to 2 years (as per the post office savings account interest rate).