Post Office MIS

Full form: Post Office Monthly Income Scheme

Savings & Deposits

Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme that provides guaranteed monthly income. Current interest rate 7.4% (FY 2024-25). Maximum investment: Rs 9 lakh individual, Rs 15 lakh joint account. Available at all post offices.

In detail

POMIS key features:nReturn: 7.4% per annum, paid monthlynTenure: 5 yearsnMinimum: Rs 1,000nMaximum: Rs 9L (single), Rs 15L (joint)nPremature withdrawal: after 1 year (with penalty: 2% for 1-3 years, 1% for 3-5 years)nNo TDS on interest (but fully taxable at slab rate)nMaturity: full principal returned at 5 yearsnnIdeal for: retirees needing monthly income, conservative investors who want safety + monthly payout.

Formula

Monthly income = Principal x 7.4% / 12nRs 9L x 7.4% / 12 = Rs 5,550/month

Real-life example

🇮🇳 India example

Retired teacher Shirin invests Rs 9L in POMIS. Gets Rs 5,550/month guaranteed (zero market risk). Her husband invests Rs 9L in SCSS at 8.2% (quarterly payout Rs 18,450/quarter). Combined: Rs 5,550 POMIS monthly + Rs 6,150 SCSS monthly = Rs 11,700/month reliable income from Rs 18L invested.

Frequently asked questions

POMIS vs Senior Citizen Savings Scheme -- which is better? ▼

SCSS: higher rate (8.2% vs 7.4%), quarterly payout, only for 60+ years, max Rs 30L, 5-year tenure. POMIS: monthly payout (better for regular monthly expenses), available for any age, max Rs 9L individual. For senior citizens: SCSS is better (higher rate, higher limit). POMIS for pre-retirement monthly income needs.