The Post Office Monthly Income Scheme (POMIS) offers both single and joint account options. It is designed for regular income through a one-time investment. This small savings scheme provides an annual interest rate of 7.4%.

The annual interest earned is divided into 12 parts and credited to your account every month. If you do not withdraw the monthly interest, it remains in your post office savings account and continues to earn interest along with the principal. The scheme has a maturity period of 5 years, but it can be extended based on the new interest rate after maturity. In this article, we will share all the details about the Post Office Risk-Free Scheme, including how to earn ₹1,11,000 annually, the investment amount, and the process.

POMIS: Maximum Deposit Limit

In the Post Office Monthly Income Scheme (POMIS), a single account holder can deposit up to ₹9 lakh, while a joint account allows a maximum deposit of ₹15 lakh. To open an account, a minimum investment of ₹1,000 is required, and further deposits must be in multiples of ₹1,000. In a joint account, all holders have an equal share in the investment.

POMIS: A Secure Government-Backed Scheme

POMIS is a government-backed small savings scheme that guarantees secure and steady returns. Since it is a post office scheme, it ensures 100% security. Apart from single accounts, individuals can also open joint accounts with their spouses.

POMIS Eligibility: Who Can Open an Account?

A single adult can open an account.
A joint account (maximum of three adults) can be opened.
A guardian can open an account in the name of a minor.
Minors aged 10 years or above can open an account in their name.

Monthly Income: How Much Will You Earn?

For Joint Accounts:

Interest Rate: 7.4% per annum
Maximum Investment: ₹15 lakh
Annual Interest: ₹1,11,000
Monthly Interest: ₹9,250

For Single Accounts:

Interest Rate: 7.4% per annum
Maximum Investment: ₹9 lakh
Annual Interest: ₹66,600
Monthly Interest: ₹5,550

POMIS Maturity & Extension

The maturity period of POMIS is 5 years. After this, the scheme can be extended for another 5 years based on the new interest rate. POMIS offers better returns compared to bank FDs. If you do not wish to continue after maturity, the full deposit amount will be returned.

Premature Closure of POMIS Account

No withdrawals are allowed before completing 1 year.
If closed between 1 and 3 years, a 2% deduction from the principal amount will be applied.
If closed between 3 to 5 years, a 1% deduction from the principal amount will be applied.
To close the account prematurely, the account holder must submit the required application form along with the passbook at the post office.