For investors looking for a safe and steady source of income, the Post Office Monthly Income Scheme (POMIS) continues to be one of the most reliable options. Backed by the Government of India, this savings scheme is designed for people who prefer guaranteed returns with minimal risk, making it especially popular among retirees and conservative investors.
The scheme requires a one-time deposit and pays interest every month. Here’s a detailed look at how POMIS works, who can invest, and how much money is needed to generate a monthly income of around ₹9,000.
What is the Post Office Monthly Income Scheme?
The Post Office Monthly Income Scheme, officially known as the National Savings Monthly Income Account, is a fixed-income investment offered through post offices across India. It provides a predictable monthly payout, making it suitable for those who rely on regular income rather than long-term capital growth.
Current Interest Rate on POMIS
At present, POMIS offers an interest rate of 7.4% per annum, paid out on a monthly basis. Compared to many bank fixed deposits, the scheme offers better stability and the assurance of government backing.
Who Can Open a POMIS Account?
The scheme is open to:
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Any Indian resident aged 18 years or above
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Joint account holders (up to three adults)
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A guardian opening an account on behalf of a minor or a person of unsound mind
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Minors above 10 years, who can open an account in their own name
Minimum and Maximum Investment Limits
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Minimum investment: ₹1,000 (in multiples of ₹1,000)
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Maximum investment:
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₹9 lakh for a single account
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₹15 lakh for a joint account
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These limits help ensure affordability while allowing higher investments for joint holders.
How Much Investment Is Needed for ₹9,000 Monthly Income?
The monthly payout depends on the amount invested. Based on the current interest rate:
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₹5 lakh investment: Around ₹3,083 per month
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₹9 lakh investment: Around ₹5,550 per month
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₹15 lakh investment (joint account): Around ₹9,250 per month
This means a joint account with the maximum permissible investment can generate close to ₹9,000 per month, or approximately ₹1.11 lakh annually.
Maturity Period and Withdrawal Rules
The Post Office MIS comes with a fixed maturity period of five years. After maturity:
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The investor can withdraw the entire principal amount
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The scheme can be renewed by opening a new MIS account
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If not withdrawn, the maturity amount earns interest at the post office savings account rate
Why POMIS Is Popular Among Conservative Investors
With guaranteed monthly income, a fixed tenure, and government backing, POMIS remains a preferred choice for individuals seeking financial security without market-linked risks.