How the Post Office Monthly Income Scheme (POMIS) Works
The Post Office Monthly Income Scheme (POMIS) is a government-backed fixed-income savings scheme administered through India Post branches across the country. It is designed to provide investors with a predictable, steady stream of guaranteed monthly income while keeping their core principal fully protected.
Statutory Investment Limits
Under the revised Small Savings rules:
- Single Account: Minimum deposit of ₹1,000 up to a maximum limit of ₹9,000,000 (₹9 Lakh).
- Joint Account (Up to 3 Adults): Maximum total investment limit of ₹15,00,000 (₹15 Lakh) with all holders enjoying an equal share.
- Multiple Accounts: An individual can hold multiple POMIS accounts provided their cumulative share across all single and joint accounts does not exceed ₹9 Lakh.
Monthly Interest Formula
Monthly Payout = (Principal Deposit × Annual Interest Rate %) ÷ 12
Frequently Asked Questions (FAQs)
Can POMIS interest be auto-credited to a bank account? ▼
Yes. Monthly interest can be directly credited automatically into your Post Office Savings Account (POSA) or routed to any commercial bank savings account via ECS (Electronic Clearing Service).
What happens if I do not withdraw the monthly interest? ▼
Unclaimed monthly interest left in the POMIS account does not earn any additional interest. To maximize returns, investors set up an automatic standing instruction to sweep the monthly payout into a 5-year Post Office Recurring Deposit (RD).
What are the premature closure penalty rules? ▼
No withdrawal is permitted within the first 1 year. If closed between 1 and 3 years, a 2% deduction is levied on the principal deposit. If closed between 3 and 5 years, a 1% deduction is applied.