Post Office Monthly Income Scheme: Earn Up to ₹10,000 Every Month Safely – Full Investment Process Explained

For individuals seeking regular and risk-free monthly income, the Post Office Monthly Income Scheme (POMIS) is one of the most reliable small savings options in India. This scheme is particularly beneficial for retirees, homemakers, and low-risk investors who prefer fixed returns without market volatility.

By investing in POMIS, you can earn up to ₹10,000 per month, ensuring a steady income stream along with capital safety. Let’s explore the complete details of this government-backed savings plan, including interest rates, eligibility, and the investment process.

What is the Post Office Monthly Income Scheme (POMIS)?

POMIS is a small savings scheme offered by India Post, designed to provide fixed monthly interest payouts to investors.

• Nature of Scheme: Risk-free, government-backed

• Ideal for: Retirees, homemakers, and conservative investors

• Key benefit: Fixed monthly income with guaranteed returns

The scheme is low-risk because it is backed by the Government of India, making it an excellent option for those seeking capital preservation along with periodic interest income.

Interest Rate and Potential Monthly Income

As of July–September 2025, the interest rate on POMIS remains unchanged, in line with the government’s decision to keep small savings interest rates stable.

• Current Interest Rate: 7.10% per annum (for POMIS)

• Payout Frequency: Monthly

• Maximum Monthly Income: Approximately ₹10,000, depending on your investment amount

Example:

• If an investor deposits ₹18 lakh (maximum for a joint account) at 7.10% p.a.,

• Annual interest = ₹1,27,800

• Monthly interest payout ≈ ₹10,650

This provides consistent cash flow without the risks associated with market-linked instruments.

Eligibility and Investment Limits

The Post Office Monthly Income Scheme has straightforward eligibility criteria:

• Who can invest?

  • Indian citizens aged 18 years or above

  • Minors can invest through a guardian-operated account

• Investment limits:

  • Single account maximum: ₹9 lakh

  • Joint account maximum: ₹15–18 lakh (as per revised limits)

• Minimum deposit: ₹1,000 in multiples of ₹100

Multiple accounts can be opened, but the combined investment must not exceed the maximum limit per individual.

Features and Benefits of POMIS

Guaranteed Monthly Income

• Interest is credited every month, ensuring stable earnings.

Government-Backed Safety

• Fully secured under the small savings framework of India Post.

No TDS on Interest

• Interest is taxable, but no TDS is deducted at source.

Easy Liquidity (Post 1 Year)

• Premature withdrawals are allowed after one year with penalty deductions.

How to Open a POMIS Account

Opening a Post Office Monthly Income Scheme account is simple and can be done at any India Post branch.

Step-by-step process:

Visit the nearest Post Office and collect the POMIS application form.

Submit KYC documents, including Aadhaar, PAN, and a passport-size photograph.

Choose account type – single or joint.

Deposit the amount (cash, cheque, or online transfer as per post office rules).

Receive your account passbook and start earning monthly interest.

Why POMIS is a Smart Option for Risk-Averse Investors

POMIS is ideal for those seeking predictable monthly returns without exposure to market fluctuations.

• Retirees can use it as a pension supplement.

• Homemakers can receive monthly household support.

• Conservative investors can park surplus funds for steady passive income.

Additionally, investors can combine POMIS with other small savings schemes like PPF (7.10% tax-free) or Senior Citizens Savings Scheme (SCSS at 8.2%) to diversify income sources.

Bottom Line

The Post Office Monthly Income Scheme offers assured returns, government security, and convenient monthly payouts, making it perfect for retirees and low-risk investors. With the current interest rate of 7.10%, investors can earn up to ₹10,000 per month, creating a reliable income stream without financial stress.

Opening a POMIS account is simple, and with no market risk, it remains one of the most dependable income-oriented investments in India.