Post Office Monthly Income Scheme

Individuals who are looking for safe & secure investments can surely sign up for the Post Office Monthly Income scheme. This scheme is basically a 5-year investment plan that earns good returns for the investor. The Post Office Monthly Income scheme is not a very popular scheme, especially in the urban part of India, but it offers an annual rate of interest of 6.6% and provides a fixed monthly income to the investor. Those who seek to invest in this scheme can go to any post office across and avail of the scheme.

What are the benefits of Post Office Monthly Income scheme :

• The Post Office Monthly Income scheme keeps the capital intact.
• The scheme is not affected by market fluctuations.
• An investor earns a fixed monthly income at an interest of 6.6%.
• It is a credible income scheme and gives better returns than most instruments that are debt-based.

Features of Post Office Monthly Income scheme:

• Lock-in Period : Another important aspect of the Post Office Monthly Income Scheme is its lock-in period which is 5 years during which an investor is not allowed to withdraw any money.


• Maximum limit : The Maximum limit amount that an individual can invest in this scheme is Rs.4.5 lakh. Apart from this, if this account is opened jointly, in that case, the amount limit will exceed Rs. 9 lakhs.


• Transferable : ThePost Office Monthly Income Scheme is easily transferable. An individual can transfer this scheme from one post office to another.


• Joint account : The scheme allows a total of three people to open a joint account where the maximum amount that can be invested is Rs. 9 lakhs.


• LMinor account : A Post Office Monthly Income Scheme account can also be opened in the name of a minor who is aged above 10 years. In this case, the minor can withdraw the amount only after attaining the age of 18 years.


• Eligibility to invest : An individual who is a resident of India can invest in this scheme.


• Auto-withdrawal : The auto-withdrawal option allows the process where the monthly interest amount will be transferred to the investor’s bank account.


• Penalty : Under this scheme, the investment amount can be withdrawn before the lock-in period by just paying a penalty


• Investment amount : The minimum investment amount that can be contributed towards this scheme is a sum of Rs. 1,000.


• Tax deductions : This scheme offers no tax benefits to investors.

What documents are required to apply for this scheme?

The Post Office Monthly Income scheme is a very simple scheme to apply for, the documentation process is not at all complex. At the time of applying for the scheme, the investor requires to submit a copy of his identity proof, address proof, and a few copies of his/her passport-size photographs. A passport, ration card, PAN card, or voter identity card can be used as ID proof for this scheme.

Let’s understand the Post Office Monthly Income Scheme through an example :

For example, If Mr. Rao has invested Rs. 9 lakhs in the Post Office Monthly Income Scheme for 5 years. As it has been already mentioned that the interest rate is 7.10% p.a. Such that his monthly income will be Rs.5,325 for that period.

Thus, we can say that the Post Office Monthly Income scheme is a highly reliable scheme offered by Post Offices across India. The POMIS is perfect for those who seek a steady monthly payout or good returns. The scheme is also popular among the elder generation since they seek a secure investment for their future. Invest in POMIS and make your safe investment choice today

Who is eligible to apply for this scheme?

The Post Office Monthly Income scheme follows a very simplified eligibility criterion. An individual who is a resident of India can apply for this scheme howsoever, the NRIs are not allowed to invest in this scheme. The age of an investor must be 18 years or above to invest in this scheme. Apart from this, one can invest in this scheme in name of a minor who is 10 or above 10 years of age. Later, the minor can withdraw the amount from the account once he/ she turns 18.

Thus, we can say that the Post Office Monthly Income scheme is a highly reliable scheme offered by Post Offices across India. The POMIS is perfect for those who seek a steady monthly payout or good returns. The scheme is also popular among the elder generation since they seek a secure investment for their future. Invest in POMIS and make your safe investment choice today.