- By Imran Zafar
- Tue, 28 Jan 2025 01:27 PM (IST)
- Source:JND
The Post Office Monthly Income Scheme (POMIS), a government-backed savings option, provides individuals with a fixed and reliable monthly income. Managed by India Post, it is a low-risk investment alternative to fixed deposits, appealing to retirees, senior citizens and risk-averse individuals seeking steady returns.
POMIS Current Interest Rate
In its December 31, 2024, press release, the Finance Ministry’s Department of Economic Affairs announced that the small savings schemes' interest rates, including POMIS, will remain unchanged for the fourth quarter of FY 2024-25.
For the January-March 2025 quarter, the interest rate for POMIS is set at 7.4 per cent per annum, payable monthly. Interest payments commence one month after the account is opened and continue until the five-year tenure ends.
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POMIS Features
POMIS requires a one-time lump sum deposit for a five-year term. The principal amount is returned in full upon maturity, while monthly interest payments ensure consistent income throughout the tenure.
Investors can open POMIS accounts with a minimum deposit of Rs 1,000, increasing in multiples of Rs 1,000. The maximum deposit limit is Rs 9 lakh for single accounts and Rs 15 lakh for joint accounts. Individuals can hold multiple POMIS accounts, provided the total deposits across all accounts do not exceed Rs 9 lakh. Additionally, accounts opened for minors have separate deposit limits.
With its government guarantee, no risk to capital, and moderate returns, POMIS remains a preferred choice for those seeking safe investments. This scheme provides financial stability, particularly for individuals aiming for a predictable monthly income.
