Risk-free earnings! THIS Post Office investment plan offers Rs 9,250/month; read full details

The Post Office Monthly Income Scheme (POMIS) is a government-backed investment scheme offered by India Post. It is designed for individuals seeking a safe, stable, and reliable monthly income. The government revises the interest rates of POMIS along with other small savings schemes every quarter.

Post Office Monthly Income Scheme Interest Rate: What is the latest interest rate?

The interest rate is 7.4% per annum payable monthly for the January - March 2025 quarter. Interest will be paid from the date of opening an account to the end of the month and up to maturity.

"The interest rates for various small savings schemes for the fourth quarter of the financial year 2024-25, starting January 1, 2025, and ending on March 31, 2025, will remain unchanged from those notified for the third quarter (October 1, 2024, to December 31, 2024)," according to a press release dated December 31, 2024, from the Department of Economic Affairs, Ministry of Finance.

Post Office Monthly Income Scheme Details

Under this scheme, investors deposit a lump sum for a 5-year term and receive monthly interest on their deposit at a pre-determined rate. The principal amount is fully refunded at the end of the term. POMIS is particularly popular among retirees, senior citizens, and risk-averse individuals seeking a steady source of income due to its moderate returns and capital safety.

A Monthly Income Scheme account can be opened with a minimum of Rs. 1000 and in multiples thereof. A maximum of Rs 9 lakh can be deposited in a POMIS account held individually, while a maximum of Rs 15 lakh can be invested in a joint POMIS account. An individual can open multiple POMIS accounts, but the total deposit in all POMIS accounts started by an individual should not exceed Rs. 9 lakhs. The limit for an account created on behalf of a minor as a guardian will be separate.

What happens if excess is deposited?

The excess deposit will be refunded, and the applicable interest rate will be the post office savings account interest rate.

Post Office Monthly Income Scheme Interest Rate - Interest Details
Interest will be paid monthly starting one month from the date of account opening until maturity. The interest earned is taxable according to the depositor's income tax slab.
 

What happens upon maturity?

After 5 years, the account can be closed by submitting the application form and passbook at the post office. The principal amount is refunded.

If the account holder dies before maturity, the account is closed, and the invested amount is returned to the nominee or legal heirs. According to the post office website, interest will be paid up to the month before the money is withdrawn.

How much will you get per month?

Under this scheme, if Suresh opens an individual account by paying a maximum of Rs. 9 lakhs, Suresh can receive Rs. 5,550 as interest at 7.4 percent for 5 years from the date the account was opened. At the maturity of the scheme, Suresh can get back the full Rs. 9 lakhs he deposited.

Similarly, if Suresh jointly invests a maximum of Rs. 15 lakhs in this scheme with his wife Priya, they can receive Rs. 9,250 every month for 5 years from the date the account was opened. At the maturity of the scheme, Suresh can get back his deposit amount of Rs. 15 lakhs in full.