Post Office Monthly Income Scheme 2023 ~ Benefits, Interest Rate

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A variety of investment alternatives with fixed returns are available through the Post Office Depository Service. This is a government-backed investment option because the sovereign guarantee enables each of these schemes. These schemes are consequently safer investment options when compared to equity shares and many fixed-income options.

The Post Office Monthly Income Scheme, which offers an interest rate of 6.7%, is one of the highest-earning options, along with the Post Office Savings Account, Post Office Recurring Deposit, and Post Office Time Deposit. The scheme’s name already makes it clear that interest is paid out once a month. Like other post office schemes, this scheme has the Ministry of Finance’s acknowledgment and approval.


Repercussions of an Early Withdrawal

Time of POMIS withdrawalOutcomes of premature withdrawal
Before completing one yearZero benefits
Between 1st and 3rd yearEntire deposit refunded after deducting a 2% penalty
Between 3rd and 5th yearEntire corpus refunded with 1% penalty

What is Post Office Monthly Income Scheme


An investment plan known as a monthly Income Scheme (MIS) assures investors of returns at an annual interest rate of 6.60%. These returns are available to you as a regular monthly income.

The Post Office Monthly Income Scheme is the name of the investment scheme run by the Indian Postal Service (POMIS). It ensures the investor a consistent monthly income with a guaranteed annual return of 6.60%. Because it protects your savings, offers higher returns than debt instruments, and guarantees a fixed monthly income, MIS is regarded by expert investors as one of the best investment options.


How to Register for a POMIS Account ?

It’s not difficult to open a POMIS account. Read the steps below to know how to open the POMIS account.

  • You should open a post office savings account if you don’t already have one.
  • At the post office, pick up an application for POMIS.
  • At the post office, turn in the properly completed form, a photocopy of your ID, residential documentation, and two passport-size pictures. Carry the originals with you for verification.
  • Obtain the witness’s or nominees’ signatures on the form.
  • Pay the down payment in cash or by check. A post-dated check will have the account opening date as the date printed on it.
  • The Post Office executive will give you the specifics of your newly opened account once the processing is complete.

Post Office Monthly Income Scheme Disadvantages

  • The Post Office Monthly Income Scheme does not provide a section 80C tax rebate. Simply put, you cannot deduct the cost of your POMIS investment.
  • If they are not withdrawn, the monthly payouts are inactive and don’t earn any interest.
  • Despite the fact that there is no TDS applied to the Post Office MIS, the interest income is taxable in your hands.

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