Post Office Monthly Income Scheme (POMIS)
4 min readThe Post Office, like any other nationalized bank, has long been a safe haven for money deposits and transactions. This is particularly true for the elderly. Branches of the Post Office across the country offer a variety of savings plans.
One such scheme is the India Post Monthly Income Scheme, which allows you to invest a set amount and get a monthly fixed interest payment. You can invest in this at any post office, as the name implies.
The following aspects of the Post office MIS scheme will be discussed in this article.
Post Office Monthly Income Scheme
A resident Indian can only open a POMIS (Post Office Monthly Income Scheme) account. NRIs are not eligible for this scheme’s advantages. Despite modest tax benefits, the postal mis scheme account has the flexibility and predictability that attracts risk-averse investors.
Investing in the Monthly Income Scheme in postal is a simple process. It only necessitates the most basic documentation. Investors must provide a copy of their identification, proof of address, and passport-sized pictures. Passports, ration cards, PAN cards, and voter identity cards are all acceptable forms of identification.
Its major goal is to safeguard assets. The initiative has the support of the Indian government. As a result, the capital in the POMIS is entirely safe. Inflation is not factored into the POMIS. This indicates that inflation has an impact on the returns on these deposits.
The monthly interest can be picked up at the post office or deposited into a savings account. The money you invest in a fixed income program is not exposed to market risks. It’s a perfectly safe scheme.
Features & Benefits of Post Office Monthly Income Scheme
- Capital Protection: Because this is a government-backed scheme, your money will be protected until maturity.
- Tenure: The Post Office MIS has a five-year lock-in period. When the program matures, you can either withdraw or reinvest the money you deposited.
- Low-risk investment: Because you invested in a fixed income plan, your money is safe and not exposed to market dangers.
- Affordably priced deposits: You can begin with an Rs.1,000 first commitment. You can invest in multiples of this amount depending on your financial situation.
- Returns are guaranteed: Every month, you earn money in the form of interest. Although the returns do not beat inflation, they are greater than other fixed-income assets such as FDs.
- Tax efficiency: Section 80C does not apply to your investment, and TDS is also not relevant.
- Dividend: You will receive your payout one month after making your first investment, rather than at the start of each month.
- Ownership of several accounts: You have the option of opening many accounts in your name. However, the total deposit amount in all of them cannot exceed Rs.4.5 lakh.
- Joint Account: You can open a joint account with two or three persons. This account can hold an aggregate amount of up to Rs.9 lakh in this circumstance.
- Fund transfer: The investor can transfer funds to a recurring deposit (RD) account, which is a new function offered by Post Office.
- Nominee: If the investor dies during the account’s term, the investor can name a beneficiary (a family member) to receive the benefits and corpus.
- Ease of money/interest transactions: You can either collect your interest from the post office or have it automatically deposited to your savings account. Reinvesting the interest in a SIP can also be profitable.
- Reinvestment: To continue earning advantages, you can reinvest the corpus when it matures in the same program for another block of five years.
Eligibility criteria to open a POMIS account
- A Postal MIS Interest account can only be opened by a resident Indian.
- NRIs are not eligible for this scheme’s advantages.
- Anyone above the age of 18 can create an account.
- You can open an account on behalf of a kid if he or she is over the age of ten. When kids reach the age of 18, they can apply for the fund.
- After reaching the majority, a minor must apply for the account to be converted into his name.
Postal MIS Interest Rate 2021
An MIS Monthly Income Scheme is an investment scheme that promises the investor guaranteed returns at an interest rate of 6.60% per annum. These returns can be availed as fixed monthly income. Post Office Monthly Income Scheme (POMIS) is an investment scheme of the Indian postal service.
Here is the Declining Rate of Interest on the Post Office Monthly Income Scheme:

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