Post Office Monthly Income Scheme: The Post Office Monthly Income Scheme (POMIS) 2025 is one of the most reliable and secure savings options available in India, especially for people who want a fixed and regular source of income every month. This government-backed small savings scheme is ideal for senior citizens, retired employees, and individuals who prefer low-risk investments. The scheme allows investors to deposit a lump sum amount and receive a fixed monthly income in the form of interest. Managed by the Department of Posts, this scheme provides both stability and guaranteed returns.
Post Office Monthly Income Scheme
The Post Office Monthly Income Scheme is a small savings plan that offers fixed and steady monthly interest payouts to investors. This scheme is suitable for those who prefer a stable income with minimal risk exposure. The interest rate is fixed by the Government of India every quarter, ensuring safety and transparency. Investors can open an account either individually or jointly, and the account can be easily transferred from one post office to another across the country.
Post Office Monthly Income Scheme Overview
| Scheme Name | Post Office Monthly Income Scheme (POMIS) 2025 |
|---|---|
| Launched By | Government of India |
| Managed By | Department of Posts, India |
| Interest Rate (2025) | 7.4% per annum (subject to change quarterly) |
| Minimum Investment | ₹1,000 |
| Maximum Investment (Single Account) | ₹9 lakh |
| Maximum Investment (Joint Account) | ₹15 lakh |
| Lock-in Period | 5 years |
| Type of Scheme | Fixed Income, Low-Risk Savings Scheme |
Key Features of Post Office Monthly Income Scheme 2025
- Guaranteed Returns – The scheme offers assured monthly income as interest, making it a great choice for risk-averse investors.
- Government-Backed Security – Since it is managed by the Indian Postal Department under the Government of India, the scheme carries no risk of loss.
- Flexible Investment Option – Investors can start with as little as ₹1,000 and invest up to ₹9 lakh for individual accounts or ₹15 lakh for joint accounts.
- Monthly Payout – Interest is credited every month directly into the investor’s post office savings account.
- Nomination Facility – The scheme allows you to nominate a person who can claim the amount in case of the investor’s death.
- Transferable Account – The account can be easily transferred between post offices across India.
Eligibility Criteria for Post Office Monthly Income Scheme 2025
To open a POMIS account, the applicant must meet the following criteria:
- The person must be an Indian resident.
- Minors above 10 years of age can open an account in their own name.
- Joint accounts can be opened with up to three adults.
- Non-Resident Indians (NRIs) are not eligible to invest in this scheme.
Interest Rate and Returns in 2025
As of 2025, the interest rate for the Post Office Monthly Income Scheme is 7.4% per annum, which is revised every quarter by the Ministry of Finance. The interest is paid monthly, starting from one month after opening the account. For example, if you invest ₹9 lakh, you will receive a monthly interest of approximately ₹5,550.
How to Open a Post Office Monthly Income Scheme Account
Opening a POMIS account is a simple process that can be done at any nearby post office. Follow these steps:
- Visit your nearest post office and ask for the POMIS account opening form.
- Fill in all required details carefully, including name, address, and nominee details.
- Attach copies of KYC documents such as Aadhaar card, PAN card, and recent passport-size photographs.
- Deposit the investment amount through cash, cheque, or demand draft.
- Once the application is processed, you will receive a POMIS passbook with details of your investment and monthly income.
Premature Withdrawal and Maturity
The lock-in period for the Post Office Monthly Income Scheme is 5 years, but premature withdrawal is allowed under certain conditions:
- Withdrawal before 1 year is not allowed.
- If withdrawn between 1 to 3 years, a 2% deduction is made from the deposit amount.
- If withdrawn after 3 years, a 1% deduction is applicable.
After completing the 5-year term, you can withdraw the entire maturity amount or reinvest it in the same or any other small savings scheme.
Benefits of the Post Office Monthly Income Scheme
- Risk-Free Returns: Since it is backed by the Government of India, the scheme ensures complete safety of your capital.
- Regular Income: Perfect for retirees and homemakers who want fixed monthly income.
- No Market Risk: The scheme is not affected by market fluctuations, ensuring stability.
- Nomination and Transfer Facilities: Allows easy transfer and nomination, offering convenience to investors.
Tax Benefits
The Post Office Monthly Income Scheme does not offer tax deductions under Section 80C of the Income Tax Act. However, the interest income is taxable as per the investor’s income tax slab.
FAQs
The interest rate for 2025 is 7.4% per annum, subject to quarterly revision by the government.
Yes, premature withdrawals are allowed after one year, but a small deduction will be applied.
Any Indian citizen above 10 years of age can open an account, either individually or jointly.
Yes, it is completely safe as it is backed by the Government of India and offers guaranteed monthly returns.
The Post Office Monthly Income Scheme 2025 is an ideal savings plan for those seeking a reliable and safe monthly income. With guaranteed returns, easy account management, and the trust of a government-backed scheme, it is a perfect choice for risk-averse individuals. Whether you are a retiree, a homemaker, or someone looking for a stable income source, the POMIS 2025 can help you achieve financial security with peace of mind.