Post Office Monthly Income Plan is an option if you want to invest a fixed amount and receive a fixed interest payment every month. As the name suggests, you can get it from your nearest post office. A small savings scheme supported by the government of India, The Post Office Monthly Income Scheme (POMIS) enables investors to save a predetermined amount every month. The investment is then combined with interest at the corresponding rate and deposited to depositors every month. Read below to see detailed information related to post office monthly income plan.
Post Office Monthly Income Scheme 2024
Under the guidelines of the Ministry of finance, the post office also offers POMIS i.e. Post Office Monthly Income Scheme in addition to various banking products and services. As a result, it is quite reliable. It consistently generates revenue and is a low-risk mis. For those looking for a constant source of income, this is a suitable option as it guarantees investors monthly dividends. Currently, the scheme offers an interest rate of 7.4% per annum. The central government revises these interest rates every quarter. In five years you can invest up to Rs. 9 lakhs or Rs. 15 lakhs collectively. Its main goal is to protect capital. From April to June 2024, the interest rate is 7.40% per annum, payable monthly.
Features and benefits of Post Office Monthly Income Scheme
Some of the key features and benefits of Post Office Monthly Income Scheme are as follows:
The government of India supports the Post Office Monthly Income Scheme, which is a safe and robust investment option.
Due to the government’s support for this program, your money is safe until maturity.
Since this is a fixed income program, your investment is safe and not sensitive to market fluctuations.
Post Office MIS has a lock-in period of five years. When the plan matures, you have the option to reinvest or withdraw the invested amount.
You only get Rs. Can start from. 1,000 initial investment. You can invest several times this amount depending on your potential.
Every month you receive income as interest. Not taking inflation into account, returns are higher than other fixed-income assets, such as FDs.
Section 80C does not protect your investment, nor does TDs apply.
It is possible to open several accounts in your name. However, the total amount of the deposit cannot exceed Rs. 9 million
Dividends will be sent to you one month after your first deposit, not at the beginning of each month.
Two or three people can open a joint account. In this case, the maximum total investment in this account is Rs. 15 lakhs
Investors have the option of transferring money to a recurring deposit (RD) account, a recent addition by the post office.
If the investor dies before the account matures, the beneficiary – a family member – can be nominated by the investor to receive benefits and funds.
Monthly interest can be automatically credited to your savings account, or you can receive it immediately from the post office. Another useful option in SIP is interest reinvestment.
You can reinvest funds in the same plan for an additional five years after maturity to continue receiving benefits.
Eligibility criteria for Post Office Monthly Income Scheme
Applicants applying for the Post Office Monthly Income Scheme must meet the following eligibility criteria:
A POMIS account can only be opened by an Indian resident.
An account may be opened on your behalf for a minor aged ten or older. When children are eighteen years old, they will be able to use this fund.
NRIs are not eligible to avail this scheme.
POMIS account can open any adult person.
Once a minor becomes an adult, he should try to change the account to his name.
Documents required for Post Office Monthly Income Scheme
Some of the important documents required for Post Office Monthly Income Scheme are as follows:
Passport size photo
Proof of identity like passport, voter ID, Driving License, Aadhaar etc.
Proof of address such as government ID or recent utility bills.
Post Office Monthly Income Scheme Interest Rate for Last 5 Years
| Time Interval | POMIS Interest Rate (Per Annum) |
| 1st January 2024 – 31st March 2024 | 7.40% |
| 1st October 2023 – 31st December 2023 | 7.40% |
| 1st April 2023 – 30th June 2023 | 7.40% |
| 1st January 2023 – 31st March 2023 | 7.10% |
| 1st October 2022 – 31st December 2022 | 7.10% |
| 1st April 2020 – 30th September 2020 | 6.60% |
| 1st January 2020 – 31st March 2020 | 7.60% |
| 1st October 2019 – 31st December 2019 | 7.60% |
| 1st July 2019 – 30th September 2019 | 7.60% |
| 1st January 2019 – 31st March 2019 | 7.70% |
| 1st October 2018 – 31st December 2018 | 7.70% |
| 1st January 2018 – 30th September 2018 | 7.30% |
Steps to open a Post Office Monthly Income Scheme account
First you need a post office savings account. If you already have no account, open an account.
Get an application from the Postal Service
Complete the form and submit it to the post office with self-verified copies of all necessary paperwork. Note: for verification, you must have the original paperwork.
Mention the names, date of birth and mobile number (if applicable) of the nominees.
Proceed to deposit the initial fund (minimum Rs. 1000) through cheque or cash.
Post Office Monthly Income Scheme prompt withdrawal penalty rules
Within the first year of the deposit, you are unable to withdraw the entire amount.
If the account is closed during the first three years, 2% of the principal will be fined; the balance will be credited to your account.
If the account is closed within 4 to 5 years 1% of the principal will be fined; then the balance will be transferred to your account.
The post office’s monthly income scheme is working
Investors should invest correctly after opening an account.
The minimum investment for an account is Rs. 1,000,and a maximum investment of Rs. 9,00,000.
Minimum investment for joint account is Rs. 1,000, while the maximum investment is Rs. 15,00,000.
Can my POMIS account be transferred?
Yes, you can transfer your account from one post office to another for free.
Is there a nomination feature in POMIS available?
Yes, you can nominate a nominee for the account who will receive the money earned in the event of your untimely death.
Where can I obtain the PMOS withdrawal form?
The withdrawal form is available for download on the India Post website or can be taken in person from the post office.
Who is eligible for POMIS?
Eligibility criteria for Post Office Monthly Income Scheme
Age requirement: the minimum age to invest in POMIS is 10 years, making it accessible to a wide range of investors. There is no upper age limit, senior citizens can also avail this scheme.
Who are eligible for post office scheme?
The age limit of the Post Office Monthly Income Plan for minors is over 10 years. He can withdraw the amount for 18 years after maturity. Eligible residential status: every Indian Citizen is eligible to open a POMIS account; however, NRI individuals cannot do so.
