Understanding the Benefits of Post Office Monthly Income Scheme

Top Benefits of Post Office Monthly Income Scheme

The Indian financial environment offers a multitude of saving schemes designed to suit the diverse needs of the country’s vast population. Among these, the Post Office Monthly Income Scheme certainly stands apart due to its unique benefits, particularly for those preferring less volatile financial instruments. In this article, we aim to shed light on the workings of the post office monthly income scheme and the numerous perks it comes with.

Benefits of Post Office Monthly Income Scheme

The post office monthly income scheme (POMIS) is a government-backed savings scheme available at all post offices across India. It offers an attractive investment avenue for conservative investors searching for fixed income solutions, enabling individuals to invest a certain amount and then receive a fixed interest on this every month.

Let us delve into the specifics. It’s important to provide clarity on how much one can invest top-down, the rate of return, and the lock-in period. An individual can invest a maximum of Rs 4.5 lakhs in one account and up to Rs 9 lakhs in a joint account. The rate of return is 6.6% p.a, which is payable monthly. It means if you invest Rs 4.5 lakhs, you get Rs 2475 per month approximately. This income is credited to the investor’s post office savings account at the end of each month, which can be withdrawn as per the convenience. The scheme comes with a lock-in period of five years.

One key benefit of the post office monthly income scheme is the guaranteed returns. Unlike other forms of investment, such as shares or mutual funds, which carry the risk of market volatility, POMIS ensures a fixed return on your investment, offering a safety net to the investor.

Another noteworthy advantage is its wide accessibility. Given the extensive reach of the postal network in India, POMIS makes for an accessible and straightforward investment option. In particular, it’s beneficial for those residing in rural or remote areas, where access to banking services might be limited.

Additionally, the scheme is backed by the Indian government, ensuing high reliability and low risk. The government’s support implies a certain degree of security, adding an additional layer of encouragement for conservative or risk-averse investors.

Another striking aspect of POMIS is the ease of operation. The scheme does not require customers to have any prior knowledge of trading or investing. It simply needs a one-time investment, after which the income generated is directly credited to the saving account.

Although the benefits of the Post office monthly income scheme are abundant, like any financial decision, individuals should carefully weigh the pros and cons before deciding to invest. This includes considering factors like financial goals, risk tolerance, need for liquidity, and tax implications. Although taxes are not deducted at source, the interest income is taxable as per the individual’s tax slabs.


Investments in the Post Office Monthly Income Scheme offer various advantages including guaranteed returns, government backing, accessibility, and simplicity, amongst others. Nevertheless, it is critical for investors to scrutinize all aspects of the scheme and how it fits in with their overall financial plan.


The Post Office Monthly Income Scheme is a government-backed savings instrument that offers fixed monthly income on the invested amount, making it an attractive option particularly for conservative investors. Key benefits include assured returns, government backing, deep accessibility across the nation and straightforward operation. It allows for investments up to Rs 4.5 lakhs in single accounts and Rs 9 lakhs in joint accounts, with a lock-in period of five years. However, it’s important for individuals to consider all factors such as financial goals, risk appetite, liquidity needs, and tax implications before investing. 

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