Post Office Monthly Income Scheme (POMIS)

What is the Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme (POMIS) is a Government of India small savings scheme operated through India Post under the Ministry of Finance's National Savings framework. It is built for savers who want a fixed, regular monthly income from a one-time lump-sum deposit rather than growth. It is popular with retirees, homemakers and conservative savers because the deposit is government-backed and the payout is predictable.

According to India Post's small savings information, POMIS currently pays 7.4% per annum, payable monthly, for deposits (the rate fixed for the quarter beginning 1 January 2024). The account runs for a fixed five-year term, and the interest rate on a given account stays locked for the full term even if the Government revises small savings rates in later quarters.

Key features

• Interest of 7.4% per annum, paid every month.
• Fixed five-year tenure.
• Minimum deposit Rs 1,000; further deposits in multiples of Rs 1,000.
• Maximum deposit Rs 9 lakh for a single account, Rs 15 lakh for a joint account.
• Government-backed, with the rate locked for the whole term.

Who is eligible for POMIS?

You can open a POMIS account if you are:

• A resident Indian adult, individually or jointly (a joint account can have up to three adults).
• A minor aged 10 years or above, who can open an account in their own name.
• A guardian opening an account on behalf of a minor or a person of unsound mind.

You cannot open a POMIS account if you are:

• A Non-Resident Indian (NRI): POMIS is only for resident Indians.
• A company, trust, firm or other institution. The scheme is for individuals, not corporate entities.

A minor who has an account in their own name is subject to the same deposit limits, and on turning 18 must convert the account to a regular adult account.

What documents are required for POMIS?

How to apply for a Post Office Monthly Income Scheme account

1. Visit your nearest post office that offers small savings accounts, or use the India Post internet banking/app facility where enabled.
2. Fill the account opening form for POMIS and attach your KYC documents — Aadhaar, PAN and photographs.
3. Deposit your lump sum; at least Rs 1,000, in multiples of Rs 1,000, up to Rs 9 lakh for a single account or Rs 15 lakh for a joint account.
4. Choose how you want the monthly interest paid; auto-credit to a linked post office savings account or bank account, so the interest reaches you every month.
5. Collect the account passbook, which records your deposit and the maturity date five years ahead.

How much can you earn from POMIS?

POMIS pays 7.4% per annum, credited monthly. On the maximum single-holder deposit of Rs 9 lakh, that works out to about Rs 5,550 per month in interest; on a joint-holder deposit of Rs 15 lakh, about Rs 9,250 per month (these are illustrative at the current 7.4% rate). The principal is returned at the end of the five-year term. Because the rate is locked at opening, your monthly income does not change even if the Government cuts small savings rates later.

The interest is taxable in the depositor's hands and there is no deduction under Section 80C for POMIS deposits, so plan for the tax on the interest income.

Premature closure and maturity

POMIS does not allow premature closure in the first year. After one year the account can be closed early, but with a penalty: a 2% deduction of the principal if closed between one and three years, and a 1% deduction if closed between three and five years. At the end of five years you can withdraw the full deposit or open a fresh POMIS account subject to the deposit limits in force at that time. If the monthly interest is not withdrawn, it does not earn any extra interest, so it is best to have the payout auto-credited.

Help and where to verify details

• India Post helpline: 1800-266-6868.
• Small savings scheme details and current interest rates are published on the India Post website and are revised quarterly by the Ministry of Finance.

Interest rates and deposit limits are set by the Government and change from time to time; the figures above reflect the rate for the quarter beginning 1 January 2024 as listed at the time of fact-checking. Confirm the current quarter's rate and limits at your post office or on indiapost.gov.in before investing.

How to check your application status

POMIS is not a benefit application that gets approved or rejected after review; it is a deposit account that is opened on the spot once your form and documents are accepted at the counter. So there is no "under process" waiting period to track online. Even so, there are a few things worth checking once your account is open, and a few ways to follow up if something feels stuck.

1. Passbook entry is your confirmation. The moment your deposit is accepted, the post office issues a passbook (or updates your existing savings passbook) showing the account number, deposit amount, opening date and maturity date. This passbook entry is the actual proof your account exists; there is no separate "application approved" notice to wait for.
2. If the account is not opened the same visit, for example because a document was missing or the KYC needed re-verification, ask the counter staff for a reference or receipt number for your submitted form. Post offices do not have a public online tracker for pending account-opening requests the way some digital schemes do, so the receipt is your only record of what was submitted and when.
3. Follow up in person or by phone at the same post office branch where you applied, quoting the receipt number or the date you visited. Because the process is manual and branch-specific, the branch that took your form is the only place that can tell you its status; a different branch or the central helpline will not have visibility into a form still sitting at the counter.
4. For an account already opened, check your monthly interest credit through your linked post office savings account or bank passbook/statement, not through any separate POMIS status page. If a monthly payout is missing, that is the actual "status check" that matters, and it is verified against your linked account's transaction history.
5. Call the India Post helpline (1800-266-6868) if you cannot get a clear answer from the branch, or if you have moved and need to trace an account opened at a different post office. Keep your account number, the post office branch name and your registered mobile number ready before calling.
6. India Post internet banking or the mobile banking app, where you have enrolled for it, lets you view your POMIS account balance and interest credits online after the account is active; this is the closest thing to an online "status" view, but it only works once the account already exists, not while a fresh application is pending at the counter.

Common reasons for rejection

Because POMIS is opened over the counter rather than through a scored or reviewed application, "rejection" here usually means the post office cannot open the account on the day you apply, or an existing account runs into a problem later. The real reasons and fixes are specific to this kind of deposit scheme:

• Deposit amount exceeds the permitted limit. If your proposed deposit takes a single account over Rs 9 lakh, or a joint account over Rs 15 lakh, including amounts already held in other POMIS accounts in your name, the post office will not accept the excess. Fix: total up all your existing POMIS holdings (single and your share of joint accounts) before depositing, and keep the new deposit within the remaining headroom under the limit.
• PAN or Aadhaar not linked or KYC incomplete. Small savings accounts require PAN for KYC; an account opening form submitted without a valid PAN, or with Aadhaar details that do not match, will be held back until corrected. Fix: carry both original PAN and Aadhaar and ensure the name and details on both match; if they do not match, get the discrepancy corrected with the issuing authority before applying.
• Applicant is a Non-Resident Indian. POMIS is restricted to resident Indians; an NRI applying, or a resident account holder who later becomes an NRI, cannot continue to hold or open a POMIS account. Fix: NRIs should look at other post office or bank instruments open to them; an existing holder who becomes an NRI must inform the post office and close the account as required under the rules.
• Application in the name of a company, trust, firm or other entity. POMIS accepts only individuals (including minors through a guardian), not institutional or business entities. Fix: institutions should use a different savings or deposit product; the account can only be opened in an eligible individual's name.