Post Office Monthly Income Scheme 2024

The Post Office Monthly Income Scheme (POMIS) is a government-backed, fixed-income instrument offering guaranteed monthly deposit returns. Unlike market-linked investments, POMIS carries minimal risk to the principal. POMIS offers a secure and attractive option for risk-averse individuals seeking steady income growth and capital protection.  

Table of Content

• Key Features of POMIS
• Interest Rules
• Deposit Rules
• Maturity
• Premature Closure of Account
• Benefits of POMIS

Key Features of POMIS

High-Interest Rates: 7.4% per annum compounded monthly (as of January 1, 2024)

Deposit Tenure: 5 years

Investment Limit:

• Single Account: Rs. 1,000 - 9 lakh
• Joint Account: Rs. 1,000 - 15 lakh

*In multiples of Rs. 1000/-

Monthly Income: Interest is calculated monthly and credited to the account. You can either withdraw the interest or let it accumulate.

Maturity: At maturity, the principal amount is refunded along with the accumulated interest.

Tax Benefits: Interest earned on POMIS is taxable under the Income Tax Act.

Who Can Open:

• A single adult
• Joint Account (up to 3 adults) (Joint A or Joint B))
• A guardian on behalf of a minor/ person of unsound mind
• A minor above 10 years in his own name.

Interest Rules 

• Interest will be paid after the completion of a month from the date of account opening until the maturity of the amount.
• In case the account holder fails to claim the monthly interest, the interest shall not earn any additional interest.
• If the depositor deposits an excess amount, it will be refunded. Only the PO Savings Account interest will apply from the account opening date to the refund date.
• Interest will be auto-credited into a savings account at the same post office. 
• If the account holder has an MIS account at a CBS Post office, the monthly interest can be credited into a savings account at any CBS Post Office.
• The depositor shall bear the tax on the interest earned.

Deposit Rules

• The account can be opened with a minimum of Rs. 1000 and multiple Rs. 1000.
• The maximum amount limit for a single account is Rs. 9 lakh, and for a joint account, it is Rs. 15 lakh.
• In a joint account, all the joint holders have an equal share.
• Deposits/shares in all MIS accounts opened by an individual shall be a maximum of Rs. 9 lakh.
• There is a separate account limit if a guardian opens an account on behalf of a minor.

Maturity

• The account may be closed on the expiration of 5 years from the opening date by submitting an application with a passbook at the concerned post office.
• If the account holder dies before the amount maturity, the account will be closed. The amount will be transferred to the nominee. Interest will be paid until the previous month, and a refund will be made.

Premature Closure of Account

• The depositor cannot withdraw any deposit 1 year before the date of the deposit.
• If the account holder closes the account between 1 - 3 years from the account opening date, the post office will deduct 2% from the principal and pay the rest.
• If the account holder closes the account between 3 - 5 years from the opening date, 1% of the principal amount will be deducted, and the rest will be paid.
• The account holder can prematurely close the account by submitting an application form with a passbook to the concerned post office. ​

Benefits of POMIS

• Backed by the Government of India, POMIS offers guaranteed returns on your investment.
• You receive monthly interest payments, providing a predictable income stream.
• Your principal amount is safe and is returned at maturity.
• You can withdraw your deposit prematurely after completing one year, though penalties are involved.
• POMIS accounts can be opened at any post office across India.