Post Office Monthly Income Scheme (POMIS) 2024

By Okbima 18 Oct 2023


The Post Office Monthly Income Scheme (POMIS) is a secure and reliable investment option, and it is a trusted choice to grow your savings while enjoying a steady source of income. As of today, 1.52 lakh post offices are available nationwide to operate these schemes. In this comprehensive guide, I will help you get an understanding of how you can multiply your income.


What is the Post Office Monthly Income Scheme?

The Monthly Income Scheme by the Post Office is a savings scheme (term deposit account) provided by the Indian postal department. It's a popular choice for you to earn a regular income with the safety of a government-backed investment.

As of April 2024, the MIS scheme will pay you an interest rate of 7.50% p.a. each month, and you can activate this scheme by visiting a nearby post office.

For example, Mr. Ajay Sharma has invested Rs. 9 lakh in the Post Office Monthly Investment Scheme for 5 years. As I mentioned above, the interest rate is 7.50% p.a. So, his monthly interest will be Rs. 5,625 for that period. Post-maturity, Ajay can withdraw his deposit of Rs. 9 lakh, along with the accumulated interest, either from any post office or renew the account.


Features of the Post Office Monthly Income Scheme

The Post Office Monthly Income Scheme (POMIS) comes with some features that make it an enticing investment option for you. These include fixed returns, flexibility in investment amounts, and so on. Let’s discuss all of this.

  1. Lock-in period: There is a lock-in period of 5 years.

  2. Maximum limit: You can invest a maximum of Rs. 9 lakhs, whether you hold single or multiple schemes in multiple post offices. In a minor account, you can only invest Rs. 3 lakh, and at a minimum, you can invest Rs. 1,500.

  3. Transferrable: If you are changing your residential location to a different city anywhere in India, you can transfer your account to your updated location. Your investment amount and interest will be transferred to your nearest post office.

  4. Joint account: You can open a maximum of three individuals in a joint account for this scheme. In a joint account, the maximum you can invest is Rs. 15 lakh, and the single limit is Rs. 9 lakh.

  5. Minor account: You can open a minor account in the name of your child, and the age limit is 10 years. After maturing for 18 years, they can withdraw the amount.

  6. Penalty: In case you wish to withdraw your investment amount before the lock-in period, you have to pay a penalty charge depending on the time of such redemption.

  7. Tax benefits: The interest on your amount does not incur any tax deducted at source (TDS); however, it also does not attract any tax benefits under Section 80C.

  8. Steady returns: You will earn an interest rate of 7.70% p.a.

  9. Easy to Invest: Investing in this scheme is very easy by just opening an account with the Post Office.


Account Type

Maximum Deposit Amount Allowed

Single Account

Rs. 9 lakhs

Joint Account (2 or 3 adults)

Rs. 15 lakhs

Minor Account

Rs. 3 lakhs


Benefits of the Post Office Monthly Income Scheme

There are some benefits of the post office monthly income scheme such as low-risk, or consistent earnings that are mentioned below:

  1. Consistent Earnings: The Post Office Monthly Income Scheme gives you a dependable monthly income. No matter how the economy is doing, you can count on a fixed interest rate of 7.40% per year, which helps you manage your finances steadily.

  2. Options for Profits: Alongside regular earnings, you can also choose to invest the money you earn in other opportunities like stocks or investment funds that might bring in more profits. However, remember that such options can be riskier and require a good understanding of the market.

  3. Low Risk: This scheme is known for being safe, making it a good choice for careful investors who want to protect their money and have a steady income. Since it's run by the government, it's considered a secure place to invest.

  4. Monthly Payments: With the Post Office MIS, you receive money every month, which is great for retirees or people looking for extra income.

  5. Not Affected by Markets: Unlike investing in stocks or other things tied to the economy, the Post Office MIS doesn't change with how the financial markets are doing. Your earnings stay the same, which provides security in uncertain financial times.


What is the Maximum Limit of Post Office Monthly Income Scheme?

There are some limits while opening or investing in a post office monthly income scheme (POMIS) that you should see before making a decision:

For Single Accounts:

• In the case of a single POMIS account, the maximum investment allowed is Rs. 4.5 lakhs, which is equivalent to 4,50,000 Indian Rupees (INR).

• This means that an individual can invest a lump sum amount of up to Rs. 4.5 lakhs in their name in a single POMIS account.


For Joint Accounts:

• When it comes to joint accounts, where two adults open a POMIS account together, the maximum investment limit is higher.

• For such joint accounts, the combined investment limit is Rs. 9 lakhs, which is equivalent to 9,00,000 INR.

• This means that when two adults jointly open a POMIS account, they can collectively invest up to Rs. 9 lakhs in the account.


Post Office Monthly Income Scheme Rate Of Interest (History)

The interest rates are revised every quarter depending on the returns generated by government bonds of similar tenure. You can check the table to view current and previous interest rates.


Time Interval

Interest Rate (per annum)

1st October 2023–31st December 2023


1st April 2023–30th June 2023


1st January 2023-31st March 2023


1st October 2022–31st December 2022


1st April 2020–30th September 2020


1st January 2020–31st March 2020


1st October 2019–31st December 2019


1st July 2019–30th September 2019


1st January 2019–31st March 2019


1st October 2018–31st December 2018


1st January 2018–30th September 2018



Comparison of Post Office Monthly Income Scheme (POMIS) with Other Investment Options

Below we have described the comparison between the post office monthly income scheme (POMIS), post office recurring deposit, post office time depost, etc.


Savings Scheme

Rate of Interest


Minimum Investment

Maximum Investment

Post Office (MIS)


No TDS is deducted.

RS 1000

9 lakh for a single account, 15 lakh for a joint account

Post Office Recurring Deposit


No TDS is deducted.


Post Office Time Deposit (5 years)


TDS is deducted.

RS 1000

No Limit

National Savings Certificate


TDS is deducted.

RS 1000

No Limit

Senior Citizen Saving Scheme


TDS is deducted.

RS 1000

RS 30 lakh for the lifetime maximum deposit of the

Public Provident Fund


TDS is deducted.

RS 500 per financial year

RS 1.5 lakh per financial year


How to Open a Post Office Monthly Income Scheme Online?

As of January 2024, it may not be possible to apply for the Post Office Monthly Income Scheme (POMIS) online. This savings program is typically offered through physical post offices in India. However, you can still apply for POMIS through a simple process. Here's how:

  1. Take a Monthly Income Scheme Form from your nearest post office, or you can click here to download the form.

  2. Fill out and submit the form along with your documents, such as a photocopy of ID proof, a photocopy of address proof, and two passport-sized photographs.

  3. Then pay the initial deposit (a minimum of Rs. 1000) via cash or cheque.

  4. After a successful process, the executive at the post office will give you the passbook of your scheme, and you can check all the details.


Post Office Monthly Income Scheme Eligibility

• Only an Indian can open an MIS account.

• Should be above the age of 18.

• You can open an account for your kid if they are 10 years old or older. When your kid reaches the age of 18, they will be able to access the fund, and they can apply for conversion of their account when they reach the age of majority.


Documents Required to Open a Post Office Monthly Income Scheme

• Identity Proof: Copy of your ID, such as your passport, voter ID card, driving license, Aadhaar, etc.

• Address Proof: Your government-issued ID or recent utility bills

• Photographs: Passport-size photographs


Post Office Monthly Income Scheme Premature Withdrawal

You can withdraw your money from the Post Office Monthly Income Scheme (MIS) before the maturity period, but there will be a penalty for doing so. The penalty amount depends on how long you have held the investment. Here's how the penalty is typically applied:


Time of POMIS withdrawal

Outcomes of premature withdrawal

Before completing one year

Zero Benefits

Between the 1st and 3rd years

The entire deposit was refunded after deducting a 2% penalty.

Between the 3rd and 5th years

The entire deposit was refunded after deducting a 1% penalty.


Note: Along with the investment in the post office, it is necessary to save your medical expenses. So, reach out to our experts to help you secure your future expenses!


What are the Post Office Monthly Income Scheme Tax Benefits?

The Post Office Monthly Income Scheme (POMIS) does not have any extra tax advantages. The interest earned from this scheme is taxable according to an individual's income tax bracket. However, below are the mentioned some of these: 

  1. There's a provision for Tax Deducted at Source (TDS), which means that if your POMIS interest income crosses ?10,000 in a financial year, TDS will be deducted.

  2. To reduce your tax liability, you can consider diversifying your investments and making use of annual tax deductions available under Section 80C and Section 80D of the Income Tax Act in India.

  3. For efficient tax planning while investing in POMIS, it's advisable to consult with a tax advisor or financial expert. They can help you make the most of your investments and minimize your tax burden.


What is the Post Office Scheme for Senior Citizens in 2024?

Post Office Senior Citizen Saving Scheme is a very good option for senior citizens above the age of 60 years. In this senior citizen savings scheme, the maturity period is 5 years. Anyone can open a single or joint account with a nominee facility. It will also help the senior citizens to avail of tax benefits under Section 80C of the Income Tax Act.



The Post Office Monthly Income Scheme (POMIS) is a reliable savings option provided by India Post, offering a fixed monthly income source to investors. It has a maximum investment limit, making it accessible to a wide range of individuals. 

However, POMIS doesn't provide specific tax benefits, and the interest income is subject to taxation, with TDS deductions applicable for amounts exceeding ?10,000 annually. Despite the tax implications, it remains a popular choice for low-risk investors looking for a regular income. 



Yes, Post Office Monthly Income Scheme (MIS) is a safe investment backed by the Government of India.

Yes, you can take a loan against your Post Office MIS account after one year of opening it.

After maturity, you can withdraw the full amount or extend the account for another 5 years.

Yes, the interest earned on Post Office MIS is taxable and subject to applicable income tax rules.

You can opt for an extension of the MIS account, continuing to earn interest on the deposit without making fresh contributions.

The agent commission for Post Office MIS varies, so check with your local Post Office for specific rates.

To renew, you need to fill out the required forms and provide instructions at your Post Office.

Yes, the interest earned on Post Office MIS is subject to taxation based on prevailing income tax laws.

The choice between the two depends on your financial goals and risk tolerance. Post Office MIS offers regular income, while fixed deposits provide fixed returns. Evaluate your needs before deciding.

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