Post Office Monthly Income Scheme

Post Office Monthly Income Scheme (POMIS) is designed to help you feel financially free by providing a steady and reliable monthly income. With guaranteed returns, it ensures that your savings grow safely while giving you peace of mind. The scheme also comes with attractive benefits and tax advantages, making it an ideal choice for conservative investors. Whether planning for retirement or monthly expenses, POMIS offers financial security and stability, helping you lead a worry-free life.

Eligibility for Post Office Monthly Income Scheme

• a single adult
• Joint Account (up to 3 adults) (Joint A or Joint B)
• a guardian on behalf of minor/person of unsound mind
• a minor above 10 years in his own name

POMIS Deposit Rules

• Account can be opened with a minimum of Rs. 1000 and in multiples of Rs. 1000.
• A maximum of Rs. 9 lakh can be deposited in a single account and 15 lakh in Joint account.
• In a joint account, all the joint holders shall have equal share in investment.
• Deposits/shares in all MIS accounts opened by an individual shall not exceed Rs. 9 lakh.
• Limit for account opened on behalf of a minor as guardian shall be separate.

Post Office Monthly Income Scheme Interest

• Interest shall be payable on completion of a month from the date of opening and so on till maturity.
• If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.
• In case any excess deposit made by the depositor, the excess deposit will be refunded back and only PO Savings Account interest will be applicable from the date of opening of account to the date of refund.
• Interest can be drawn through auto credit into savings account standing at the same post office, or ECS. In case of MIS account at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post Offices.
• Interest is taxable in the hand of the depositor.

Pre-Mature Closure of POMIS

• No deposit shall be withdrawn before the expiry of 1 year from the date of deposit.
• If the account is closed after 1 year and before 3 years from the date of account opening, a deduction equal to 2% from the principal will be deducted and the remaining amount will be paid.
• If the account is closed after 3 years and before 5 years from the date of account opening, a deduction equal to 1% from the principal will be deducted and the remaining amount will be paid.
• Account can be prematurely closed by submitting a prescribed application form with passbook at the concerned Post Office.

Premature closure of account.-

The account holder may be permitted to withdraw the deposit and close
the account at any time after expiry of a period of one year from the date of opening of such account by
making an application in Form-2, subject to the conditions that,-
(i) if the account is closed on or before the expiry of three years from the date of opening of such account, an
amount equal to two per cent. of the deposit shall be deducted and the remainder shall be paid to him; and
(ii) If the account is closed after the expiry of three years from the date of opening of such account, an amount
equal to one per cent. of the deposit shall be deducted and the remainder shall be paid to him.

Maturity of Post Office Monthly Income Scheme (POMIS)

The Post Office Monthly Income Scheme matures after 5 years from the date of account opening. On maturity, the account holder can close the account by submitting the prescribed application form (Form-3) along with the passbook at the concerned post office.

After successful verification, the original deposit amount along with the accrued interest is paid to the account holder by the accounts office.

In Case of Death Before Maturity

If the account holder dies before the completion of the 5-year maturity period, the account may be closed by the nominee or legal heirs as per the applicable Post Office Savings Scheme rules. In such cases:

• The deposit amount is refunded to the nominee or legal heirs
• Interest is paid up to the month preceding the month in which the refund is made

• In case the account holder dies before maturity, the account may be closed and the amount will be refunded to nominee/legal heirs. Interest will be paid up to the preceding month, in which the refund is made.
• In case the account holder dies before the maturity of the account, the account may be closed and the deposit shall be refunded as per provisions of the General Rules, alongwith interest upto the month preceeding the month in which refund is made.

Post Office Monthly Income Scheme Calculator

This Scheme may be called the National Savings (Monthly Income
Account) Scheme, 2019.

Opening of account.-

(1) The account may be opened by making an application in Form-1 by-
(i) a single adult;
(ii) upto a maximum of three adults in joint names;
(iii) a minor who has attained the age of ten years;
(iv) a guardian on behalf of a minor or a person of unsound mind.

(2) An individual may open and operate one or more than one account as a single account or a joint account under this Scheme subject to the ceiling of maximum deposit limit as prescribed in sub-paragraph (2) of paragraph 4.

For the purpose of maximum deposits specified under sub-paragraph (2), the account holder’s share in the balance of a joint account shall be taken as one half or one third of such balance as if the account is held by two adults or three adults.

Deposits and withdrawals.-

(1) The account shall be opened with a minimum deposit of one thousand
rupees or any sum in multiple of one thousand rupees and there shall be only one deposit in an account.
(2) A maximum of rupees four lakh fifty thousand rupees can be deposited in a single account, account
opened under clause (iii) and (iv) of paragraph 3 and nine lakhs rupees in a joint account.
(3) Deposits in all the accounts taken together for an individual shall not exceed four lakh fifty thousand rupees in a single account and nine lakh rupees in a joint account.

Interest on deposit.-
(2) Interest shall be payable to the account holder on completion of a month from the date of deposit.
(3) If the interest payable every month is not claimed by the account holder such interest shall not earn
any additional interest.
(4) Interest shall be rounded off to nearest multiple of one rupee and for this purpose any amount of fifty
paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.
(5) Where a deposit in excess to the ceiling specified under sub-paragraph (2) of paragraph 4 has been
made, the accounts office shall refund the excess deposit to the account holder immediately.
(6) The excess amount referred to in sub-paragraph (5), shall carry an interest at the rate applicable from
time to time to the Post Office Savings Account and shall be payable to such depositor on such amount.
(7) The interest referred to in sub-paragraph (6) shall be admissible from the date of deposit of the excess
amount till the end of the month preceding the month in which the deposit has been refunded.
(8) If the date of payment of monthly interest falls on Sunday or a holiday, the payment shall be deemed
to be due on the business day immediately preceding that Sunday or a holiday.

(9) If the deposit is made on 29th, 30th and 31st of a month and if these dates do not come in the following
month, the payment of monthly interest shall be made on the last date of the following month and if such last
day is a holiday, monthly interest shall be paid on the preceeding day.

Power to relax.- Where the Central Government is satisfied that the operation of any of the provisions of
this Scheme causes undue hardship to the depositor, it may by order, for reasons to be recorded in writing,
relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.

Post Office Monthly Income Scheme vs Other Post Office Saving Schemes

Resources

• Click to see Post Office Monthly Income Scheme (National Savings Time Deposit) Rules 2019
• Forms available