Post Office Monthly Income Scheme: Here’s all you need to know

The Post Office Monthly Income Scheme (POMIS) is provided by the Post Office, which is run by the union government of India. In this scheme, you can invest a certain amount of money and you can get a fixed interest rate that you will earn every month.

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This program will be useful to have a guaranteed monthly income to meet your minimum needs. It can be used as an additional contribution to your monthly salary. Senior citizens often invest in Senior Citizen Savings Scheme (SCSS), as they both have the same lock time but SCSS offers a better interest. 

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The interest rate on the Post Office Monthly Payment Scheme (POMIS) is now 6.6% PA, paid monthly. Interest will be tax deductible at the deposit. Minimum Rs. 1000 one can invest in the scheme while the maximum limit is Rs. 4.5 lakh.

However, in the case of a joint account, the maximum limit will be Rs. 9 lakh. You can deduct interest on default credit on a savings account located at the same post, or ECS. The reports of the Post Office that in the case of an MIS account at CBS Post offices, monthly interest may be credited to a savings account located at any CBS post office. 

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Who can open a POMIS account?

• Only a citizen of India can open a POMIS account.

• Any Non Resident Indian (NRI) cannot enjoy the benefits of this scheme.

• Any adult can open an account.

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• You can open an account in the name of a child 10 years and older. They can benefit from the fund when he/she become 18 years old.

• The young person, after gaining the majority, must apply for a change of account in his or her name.