Monthly Pension
Post Office Monthly Income Scheme (POMIS)
Verified Indian financial mathematics, statutory regulations, and step-by-step actionable breakdowns.
Expected Yield7.4% p.a. (Paid Monthly)
Lock-In Tenure5 Years
Risk LevelZero Risk
Tax StatusTaxable as Slab
Overview & Statutory Background
Post Office Monthly Income Scheme (POMIS) is a government-guaranteed small savings investment where depositors invest a lump sum to earn a fixed monthly interest payout for 5 years. It provides reliable, risk-free monthly income for conservative households and senior citizens.
Key Features & Operational Guidelines
Maximum deposit limit of ₹9 Lakhs for single accounts and ₹15 Lakhs for joint accounts
7.4% p.a. interest paid out monthly directly to your post office or linked savings account
5-year fixed maturity term with option to reinvest upon completion
Can be opened jointly by up to 3 adults with equal shareholding
Nomination facility available at opening and anytime thereafter
Who is Eligible to Invest?
- •Any resident Indian adult or guardian on behalf of a minor aged 10+
Indian Taxation Breakdown
| Stage | Tax Treatment |
|---|---|
| Initial Investment | No Section 80C deduction. |
| Interest & Returns | Monthly interest is fully taxable as per your income tax slab; no TDS is deducted at post office. |
| Maturity / Withdrawal | Full principal is returned at the end of 5 years. |
Advantages & Limitations
Key Advantages (Pros)
- ✓100% sovereign safety backed by Department of Posts / Government of India
- ✓Guaranteed monthly cash flow helps meet recurring grocery and household expenses
- ✓No TDS deducted by the post office
- ✓Higher deposit ceiling of ₹15 Lakhs for joint accounts
Important Limitations (Cons)
- ✕No Section 80C tax benefits
- ✕Interest does not compound; it is strictly disbursed monthly
- ✕Premature closure between 1 and 3 years incurs a 2% deduction from principal (1% after 3 yrs)
Post Office Monthly Income Scheme (POMIS) FAQs
At 7.4% p.a., a ₹15 Lakh joint deposit generates exactly ₹9,250 every month for 5 years, providing dependable passive cash flow.
Calculate Compound Returns
Use our interactive calculators to simulate exact growth schedules for this asset.