Post Office Monthly Income Scheme for NRI – POMIS Interest Rate 2024
Post Office Monthly Income Scheme is a government-backed investment option that provides you with reliable and fixed monthly income payouts. Non-Resident Indians (NRI) can not invest directly in this scheme. The scheme offers a 7.4% p.a. POMIS interest rate till 31st March 2024.
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- Post Office Monthly Income Scheme for NRI – POMIS Interest Rate 2024
What is a Post Office Monthly Income Scheme (POMIS) for NRI?
The Post Office Monthly Income Scheme (POMIS) is a savings and investment plan offered by the Indian Post Office. Currently, the scheme offers a fixed interest rate of 7.4% p.a. You can invest a fixed amount in this pension plan, and in return, you receive a periodic monthly income on completion of 5 years. It provides a stable and secure investment option for NRIs looking for safe and regular returns.
What are the Features of POMIS?
The Post Office Monthly Income Scheme (PO – MIS) offers the following key features:
| Feature | Details |
| Lock-in Period | The invested amount in a Monthly Income Scheme account with a post office is locked for 5 years. |
| Maximum Limit | Rs. 9 Lakhs for a single account. An aggregate of all deposits across multiple post offices cannot exceed Rs. 9 Lakhs. |
| Joint Account | A joint account with 2 or 3 individuals allows an aggregate investment of up to Rs. 15 Lakhs. Each investor has equal rights. |
| Transferable | You can transfer your POMIS account to a different post office within India if you change your residential status. Corpus and interest move with the transfer. |
| Minor Account | A POMIS minor account can be opened for a child above 10 years. Withdrawal is possible after maturity at 18 years. |
| Eligible Residence | Indian citizens are eligible, but NRIs cannot open a POMIS account directly. |
| Auto-withdrawal | Monthly interest can be automatically transferred to your savings account through PDCs or ECS. Applicable to CBS Post Offices for directing to any CBS-centric savings account. |
| Penalty for Withdrawal | Early withdrawal incurs a penalty based on the time of redemption during the lock-in period. |
| Investment Amount | Minimum Rs. 1000, and multiples of Rs. 1000. |
| Tax Benefits | No Tax Deducted at Source (TDS) on interest. However, it does not qualify for tax benefits under Section 80C. |
Maximum Investment Limit for Post Office Monthly Income Scheme (POMIS)
You can invest in the PO – MIS scheme as per the following investment limits:
| Account Type | Maximum Limit |
| Single Account | Rs. 9 Lakhs |
| Joint Account | Rs. 15 Lakhs |
POMIS Interest Rate
The current interest rate for the Post Office Monthly Income Scheme (POMIS) as of January 1, 2024, is 7.40% per annum, payable monthly. This is a good rate compared to other fixed-income investments, such as bank savings accounts and fixed deposits.
Benefits of POMIS
The key benefits of the Post Office Monthly Income Scheme (POMIS) are listed below:
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Steady Monthly Income: Provides a fixed monthly income, ensuring financial stability.
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Government Backing: POMIS is backed by the Indian government, adding credibility to the investment.
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No Market Risk: Unlike investments in stocks or mutual funds, POMIS does not expose you to market fluctuations.
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Reliable Returns: Offers a predetermined interest rate, ensuring a reliable and predictable return.
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Low Minimum Investment: Allows investors to start with a relatively low amount.
Eligibility Criteria for PO – MIS
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Residency Requirement: Only resident Indians can open a POMIS account; it is not applicable to Non-Resident Indians (NRIs).
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Age Criteria: Individuals above 18 years can open their own accounts.
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Minor Accounts: Accounts for minors (aged 10 and above) can be opened by someone on their behalf. At 18, minors gain access to the funds.
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Conversion at Majority: Once a minor reaches the age of majority, they need to apply to convert the account into their name.
Documents Required for PO – MIS
The following documents are required to apply for the Post Office Monthly Income Scheme (POMIS) in India:
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Identity Proof: Aadhaar card, PAN card, voter ID card, or other government-issued ID.
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Address Proof: Utility bills, bank statements, or other documents reflecting the resident's address in India.
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Two Passport-Sized Photographs
Post Office Monthly Income Scheme Interest Rate History
| Period | Post Office MIS Interest Rate (Annual) |
| 1st April 2023 – 31st March 2024 | 7.40% |
| 1st January 2023 - 31st March 2023 | 7.10% |
| 1st October 2022 - 31st December 2022 | 6.70% |
| 1st July 2022 – 30th September 2022 | 6.60% |
| 1st April 2022 – 30th June 2022 | 6.60% |
| 1st April 2021 – 31st December 2021 | 6.60% |
| 1st April 2018 – 30th June 2018 | 7.3% |
| 1st January 2018 – 31st March 2018 | 7.3% |
| 1st October 2017 – 31st December 2017 | 7.5% |
| 1st July 2017 – 30th September 2017 | 7.5% |
| 1st April 2017 – 30th June 2017 | 7.6% |
*POMIS Interest rate as of January 2024
Penalty on Early Withdrawal from POMIS Account
Penalty is levied on early withdrawal from Post Office Monthly Income Scheme (POMIS) account as the following rules:
| Time Frame | Withdrawal Conditions |
| First Year | Withdrawal not permitted during the initial year. |
| 1-3 Years | If closed within 1-3 years, a penalty of 2% of the principal will be imposed; the remaining amount transferred. |
| 4-5 Years | If closed within 4-5 years, a penalty of 1% of the principal will be imposed; the remaining amount transferred. |
Post Office Monthly Income Scheme (POMIS) vs. Monthly Income Plans
| Feature | POMIS | Mutual Fund MIP | Insurance MIP |
| Income Type | Guaranteed fixed | Variable, depends on market | Guaranteed annuity |
| Investment Focus | Debt securities | Debt & equity (20:80) | Life cover & investment |
| Returns | 7.4% interest p.a. (Jan 2024) | Up to 14%, can fall negative | Fixed annuity based on premiums |
| Risk | Very low | Low to moderate | Low (investment risk), medium (life cover risk) |
| Tax | Interest taxable, no TDS | Income taxed, no TDS | Annuity taxable |
| Investment Limit | Individual: ₹9 lakh, Joint: ₹15 lakh | No limit | No limit |
| Lock-in | 5 years | 1 year exit load | Policy term (20-30 years) |
| Liquidity | Premature withdrawal with penalty | After 1 year | Surrender charges based on policy term |
| Suitability | Risk-averse NRIs seeking steady income | NRIs wanting moderate risk & growth | NRIs seeking income & life cover |
POMIS vs Other Post Office Savings Schemes
| Savings Scheme | Rate of Interest | TDS |
| Post Office Monthly Income Scheme | 7.40% | No TDS is deducted |
| Post Office Recurring Deposit | 6.20% | No TDS is deducted |
| Post Office Time Deposit | 5.50% | No TDS is deducted |
| Post Office Time Deposit (5 years) | 6.70% | TDS is deducted |
| National Savings Certificate | 6.80% | TDS is deducted |
| Senior Citizen Saving Scheme | 8.20% | TDS is deducted |
| Public Provident Fund | 7.10% | TDS is deducted |
In Conclusion
The Post Office Monthly Income Scheme offers a reliable avenue for resident individuals in India to secure a steady monthly income. With attractive POMIS interest rates and the trustworthiness of the postal system, this scheme presents a viable option for investors seeking a stable and hassle-free investment option.
FAQ's
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What is the monthly income scheme of POMIS?
The Post Office Monthly Income Scheme (POMIS) is a government-backed investment scheme offered by the Indian Post Office. It allows you to deposit a lump sum amount and earn a fixed monthly income based on the current interest rate, which is currently 7.4% per annum (as of January 2024). This interest is compounded quarterly and paid out to you every month. -
What is the monthly interest on 1 lakh in the post office?
As of January 2024, the monthly interest on Rs. 1 lakh in the Post Office Monthly Income Scheme (POMIS) is approximately Rs. 700. This is calculated based on the current interest rate of 7.4% per annum compounded quarterly. -
What is the interest rate for MIS in post office 2024?
The interest rate for the Post Office Monthly Income Scheme (POMIS) in 2024 is as follows:Period Post Office MIS Interest Rate (Annual) 1st April 2023 – 31st March 2024 7.40% 1st January 2023 - 31st March 2023 7.10%
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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