Post Office Monthly Income Scheme (POMIS) in 2024

About PO-MIS

The full form of PO-MIS is the Post Office Monthly Income Scheme. It is a popular investment option offered by the Postal Department of India that aims to provide an investor with a regular and guaranteed monthly income.

An individual can invest their money in the PO-MIS scheme and receive a fixed monthly income in the form of interest payments.

The Post Office Monthly Income Scheme is a convenient and risk-free investment plan that helps an investor to park their funds and receive consistent returns. 

Key Features of PO-MIS (Post Office Monthly Income Scheme)

The key features of the Post Office Monthly Income Scheme (POMIS) are listed in the table below:

Eligibility Criteria to Invest in PO-MIS (Post Office Monthly Income Scheme)

To start investing in the Post Office Monthly Income Scheme (PO-MIS), an applicant must fulfil the following eligibility criteria:

• Citizenship: The applicant must be a resident Indian

• Age: The applicant must be at least 18 years old.

• No Maximum Age Limit: There is no upper age limit to invest in PO-MIS.

• Minor Account: One can open a PO-MIS account on behalf of the minor who is at least above 10 years of age.

• Joint Account: Investors can open a single or joint account. In a joint account, all account holders must be resident Indians.

Comparison Between

Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund

Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund

Guaranteed Return Plans

Returns Before Tax

7.5% ^(TAX-FREE)

Returns After Tax

7.5%

Guaranteed Returns

Yes

Life Cover

Yes

Tax on Profit

Tax Free*

Risk

No Risk

Still Better than FD’s and Debt Mutual Fund

Fixed Deposits

Returns Before Tax

7% ^(TAXABLE)

Returns After Tax

4.8%

Guaranteed Returns

Yes

Life Cover

No

Tax on Profit

Taxable

Risk

Low Risk

Debt Mutual Fund

Returns Before Tax

8% ^(TAXABLE)

Returns After Tax

5.5%

Guaranteed Returns

No

Life Cover

No

Tax on Profit

Taxable

Risk

High Risk

VIEW PLANS

*For annual premium upto ₹5 Lacs

Documents Required to Open a PO-MIS Account

The following documents are required for an applicant to open a PO-MIS account in the post office:

Steps to Open a PO-MIS Account

To open a PO-MIS account, an applicant can follow these steps:

Step 1: Visit a post office branch.

Step 2: Fill out a PO-MIS account opening form.

Step 3: Submit the required documents, including:

• Identity proof (such as PAN card, Aadhaar card, or voter ID card)

• Address proof (such as electricity bill, water bill, or bank statement)

• Passport size photographs

Step 4: Deposit the minimum investment amount of Rs. 1,000.

Step 5: Receive the PO-MIS account passbook.

Premature Withdrawal from the POMIS Account

The rules on premature withdrawals from the Post Office Monthly Income Scheme (PO-MIS) account are as follows:

Note: To close the PO-MIS account early, the account holder is required to submit the form and passbook to the Post Office. 

Advantages of Post Office Monthly Income Scheme (PO-MIS)

Post Office Monthly Income Scheme offers the following advantages to the investors:

• Protection of Investment: PO-MIS is a government-backed scheme, which means that the invested amount is safe and secure.

• Assured Returns: PO-MIS offers guaranteed returns in the form of interest, which is credited to the investor's account every month.

• Multiple Account Ownership: Multiple PO-MIS accounts can be opened for an individual, but the total deposit amount cannot exceed Rs. 9 lakhs.

• Low-Risk Investment: PO-MIS is a low-risk investment, as it is not subject to market fluctuations.

• Affordable Deposit Amount: An investor can start investing in PO-MIS with a minimum deposit of Rs. 1,000.

• Flexible Tenure: The tenure of PO-MIS is 5 years, which can be extended in blocks of 5 years.

• Liquidity: Investors can withdraw their investment from PO-MIS after the lock-in period of 5 years, subject to a penalty.

• Easy to Open and Operate: A PO-MIS account can be opened at any post office in India.

• Tax Efficiency: The interest earned on PO-MIS is taxable, but there is no TDS deducted.

Benefits of Post Office Monthly Income Scheme (PO-MIS) for NRI

Even though NRI/OCI/PIO cannot invest in POMIS, they can still benefit from it in the following ways:

• Indirect Benefits: POMIS is a government-backed savings scheme that offers a steady monthly income to investors. This helps to improve the financial stability of Indian residents, including the families of NRIs/OCIs/PIOs.

• Remittances: You can send money to your families in India through POMIS. This can help your families to invest in POMIS and earn a steady monthly income.

• Nomination Facility: POMIS account holders can nominate a beneficiary to receive the balance amount in the account in case of the depositor's death. This can help to ensure that the NRI's family is financially secure even after their death.

Post Office Monthly Income Scheme Vs. Monthly Income Plans

Let us understand the difference between PO-MIS vs. Monthly Income Plans (MIPs) from the table below:

POMIS Previous Interest Rates

The historical interest rates offered under the PO-MIS scheme are as follows: 

In Conclusion

The Post Office Monthly Income Scheme (POMIS) offers a safe and stable investment option for individuals seeking regular monthly income. With a fixed interest rate, government backing, and tax benefits, it provides a reliable avenue for those looking to secure their financial future while minimizing risk. POMIS is an attractive choice for risk-averse investors seeking steady returns over a shorter investment horizon.