Check Investment Guide for the Post Office Monthly Income Scheme 2026

The Post Office Monthly Income Scheme (POMIS) is one of the most popular small savings schemes offered by the Government of India via India Post. The scheme has been designed for individuals who are looking for a safe investment option that provides a regular monthly income.

POMIS is specially suitable for retirees, conservative investors, senior citizens and individuals seeking monthly returns without exposure to market risks. The scheme offers security, guaranteed returns and stable income as it is backed by the Government of India.

What is the Post Office Monthly Income Scheme?

Managed and operated by the Government of India through India Post, POMIS is a savings scheme in which an individual deposits a lump sum amount for a fixed tenure and receives interest every month. The scheme comes with a maturity period of 5 years and offers fixed rates of interest set by the Ministry of Finance every quarter.

The Post Office Monthly Income Scheme is often considered a low-risk investment option, as it is backed by the government of India, and the returns are fixed. The interest earned by the individual is credited to the investor's post office savings account every month.

The scheme requires a minimum investment of ₹1,000 and a maximum investment of ₹9 lakh in case of a single account. The maximum investment is ₹15 lakh in the case of a joint account, with no change to the minimum investment amount.

Assuming an individual invests ₹5,00,000 in the Post Office Monthly Income Scheme at an interest rate of 7.4% per annum, the monthly interest payout will be fixed throughout the tenure.

Key Features of Post Office Monthly Income Scheme

• Guaranteed Monthly Income: One of the attractive features of POMIS is the guaranteed monthly income. Investors receive a regular payout of interest, ensuring a consistent income stream.
• Backing of Government: The scheme is considered highly secure as it is operated by the Post Office and supported by the Government of India.
• Low Risk Investment: POMIS is suitable for risk-averse investors as it is not linked to the stock market, leaving no room for market fluctuations and risks.
• Transfer Facility: Under this scheme, individuals can transfer their account from one post office to another anywhere in India.
• Joint Account and Nomination Facility: The scheme provides a joint account facility, allowing up to 3 adults to open a joint account. In addition, investors can nominate a beneficiary at the time of opening an account.

Eligibility Criteria for POMIS

As specified by India Post, following are the eligibility criteria for investing in POMIS:

• Any resident citizen of India
• A single adult
• Joint Account (up to 3 adults) Joint ‘A’ type, to be operated by all the depositors or the surviving depositors jointly. Joint ‘B’ type, to be operated by any of the depositors or the surviving depositors separately
• Any guardian on behalf of a minor
• Any guardian on behalf of a person of unsound mind (now termed as Authorised Account)
• Any minor who has attained the age of ten years
• An individual may open and operate one or more than one account as a single account or joint account under the scheme subject to the ceiling of deposit limit.

Note: Non-Resident Indians and Hindu Undivided Families (HUFs) are not allowed to invest in this scheme.

Also Read: EPFO Grievance Guideline 2026: Step-by-Step Process to file a Complaint via EPiGMS

How to Invest in a Post Office Monthly Income Scheme?

Investing in POMIS is a simple and straightforward process. Individuals can follow these simple steps to invest in the Post Office Monthly Income Scheme:

Step 1: Visit the nearest post office and collect the POMIS account opening form.

Step 2: Fill out the application form with required details.

Step 3: Attach the necessary KYC documents, such as the Aadhaar card and PAN card.

Step 4: Deposit the investment amount through cash, cheque or Demand Draft (DD).

Step 5: Post verification of documents and payments, the post office will activate your account and provide account details.

What are the Documents Required for POMIS?

Individuals need the following documents in order to open a Post Office Monthly Income Scheme account:

• Aadhaar Card
• PAN Card
• Passport-size photograph
• Address proof
• Identity Proof

Taxation on Post Office Monthly Income Scheme

• Taxation on Interest: The interest earned by the individual from the scheme is fully taxable and added to the annual income and taxed as per the tax slab.
• Tax Deducted at Source (TDS): The post office does not deduct any TDS on the payment of interest on POMIS.
• Tax Benefits: Investments made by individuals in POMIS do not qualify for deduction under the Section 80C of the Income Tax Act1961 or the Section 123 of the Income Tax Act 2025.

POMIS vs. SCSS vs FD: Key Differences

Which one is better?

If you are looking for stable monthly income and fixed returns, choose POMIS. If you are an investor seeking liquidity and everyday banking needs, then a Post Office Savings Account may be more suitable.

Premature Closure Rules for POMIS

As per India post, account closure is not allowed before completion of 1 year from the date of opening.

• If closed between 1 year and 3 years, a deduction of 2% of the deposit amount is applicable.
• If closed after 3 years and before maturity, a deduction of 1% of the deposit amount is applicable.

FAQs

What is the tenure of the Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme comes with a fixed maturity period of 5 years. After maturity, investors can withdraw the amount or reinvest in the scheme.

Who can open a POMIS account?

Any resident Indian adult can open a POMIS account individually or jointly with up to three adults. Guardians can also open accounts on behalf of minors.

What is the minimum investment amount in POMIS?

The minimum amount required to invest in POMIS is ₹1,000. Investors can increase the investment in multiples of ₹1,000 up to the prescribed limit.

Is the interest from POMIS paid monthly?

Yes, the scheme provides fixed monthly interest payouts to investors. The interest amount is credited directly to the linked post office savings account.

Can NRIs invest in the Post Office Monthly Income Scheme?

No, Non-Resident Indians (NRIs) are not permitted to invest in POMIS. The scheme is available only for resident Indian individuals.

Is POMIS a tax-saving investment?

No, investments made under POMIS do not qualify for deductions under Section 80C of the Income Tax Act. Additionally, the interest earned is fully taxable.

Can a POMIS account be closed before maturity?

Yes, premature withdrawal is allowed after completion of the lock-in period. However, certain penalties may apply depending on the closure timing.

Is a nomination facility available in POMIS?

Yes, investors can nominate one or more beneficiaries under the scheme. The nomination can also be changed or updated later if required.