The Post Office Monthly Income Scheme (POMIS) is a government-backed savings plan offered by India Post. It’s designed to provide a fixed monthly income to investors, making it a popular choice among retirees, conservative savers, and couples looking for financial stability.
With guaranteed returns and minimal risk, POMIS stands out as a reliable investment option in today’s uncertain economic climate.
Benefits For Married Couples
Married couples can open a joint POMIS account and invest up to ₹15 lakh together. This joint account feature allows them to pool their savings and enjoy a steady monthly income. For example, if a couple invests ₹12 lakh, they can expect to receive approximately ₹6,167 every month. This predictable income stream can help cover household expenses, supplement pensions, or support lifestyle goals without worrying about market fluctuations.
Monthly Income Calculation Explained
As of October 2025, the interest rate offered under POMIS is 7.4% per annum. On a ₹12 lakh investment, the annual interest earned would be ₹88,800. Dividing this by 12 months gives a monthly payout of ₹7,400. However, due to rounding and account structure, the actual credited amount may be slightly lower, around ₹6,167. This amount is credited directly to the investor’s linked savings account every month, ensuring liquidity and convenience.
Who Should Consider POMIS
POMIS is ideal for individuals who prioritize safety and stability over high returns. It’s especially suitable for married couples, senior citizens, and those nearing retirement. People who want to avoid market volatility and prefer a fixed income source will find POMIS appealing. It’s also a good option for those looking to diversify their portfolio with a low-risk component.
How To Open Account
Opening a POMIS account is straightforward. Couples can visit their nearest post office with identity proof, address proof, and passport-sized photographs. They need to fill out the application form and choose the joint account option. The account can be opened with cash, cheque, or demand draft. Once opened, monthly interest is credited automatically to the linked savings account, making it easy to manage and track.
Taxation And Withdrawal Rules
Interest earned from POMIS is taxable, although there is no Tax Deducted at Source (TDS). Investors must declare this income while filing their tax returns. The maturity period for POMIS is five years. Premature withdrawal is allowed under specific conditions, but it may attract penalties. After maturity, investors can choose to reinvest the principal or withdraw it, depending on their financial goals.
Comparing With Other Options
Compared to bank fixed deposits or recurring deposits, POMIS offers a competitive interest rate with added security. Unlike mutual funds or stocks, it doesn’t expose investors to market risks. While it may not offer high returns like equity investments, its predictability and government backing make it a preferred choice for risk-averse individuals.
Ideal For Retirement Planning
For married couples planning their retirement, POMIS can serve as a dependable income source. It helps maintain financial independence and reduces reliance on children or external support. The monthly payout can be used for medical expenses, travel, or daily needs. Since the scheme is backed by the government, it offers peace of mind and long-term security.
Limitations To Keep In Mind
While POMIS is safe and reliable, it does have limitations. The interest earned is taxable, and the returns may not beat inflation over time. Additionally, the investment is locked in for five years, which may not suit those seeking short-term liquidity. It’s important to assess your financial needs and risk tolerance before investing.
How To Maximize Returns
To make the most of POMIS, couples should consider investing the maximum permissible amount in a joint account. They can also reinvest the maturity amount into other post office schemes or low-risk instruments to continue earning passive income. Combining POMIS with other financial products like Senior Citizens Savings Scheme (SCSS) or Public Provident Fund (PPF) can create a balanced and diversified portfolio.
Application Process Simplified
The application process for POMIS is simple and hassle-free. Investors need to visit the post office, fill out the form, and submit the required documents. The account is usually activated within a few days, and the first interest payment begins from the following month. It’s advisable to keep track of maturity dates and interest credits to ensure smooth financial planning.
Long-Term Financial Stability
Investing in POMIS contributes to long-term financial stability. It ensures a regular income without the stress of market volatility. For married couples, it can be a cornerstone of their financial strategy, offering both security and convenience. Whether used for daily expenses or saved for future goals, the monthly payout adds value to their financial journey.
Final Thoughts For Couples
For married couples seeking a safe and reliable monthly income, POMIS is a smart choice. With a ₹12 lakh investment, they can enjoy a steady payout of ₹6,167 every month. It’s a low-risk way to supplement household income, especially during retirement or financial planning for the future. While it may not offer high returns, the stability and simplicity make it a valuable addition to any conservative portfolio.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Interest rates and investment limits are subject to change based on government policies. Investors are advised to consult with a certified financial advisor or visit their nearest post office for the latest updates before making any investment decisions.