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When it comes to safe investment options with guaranteed returns, the Indian Post Office continues to remain a trusted name among millions of investors. In an era of market volatility and fluctuating bank interest rates, the Post Office Monthly Income Scheme (POMIS) offers a stable alternative for those seeking fixed monthly earnings without risk.

This government-backed savings scheme is especially popular among retirees, senior citizens, and conservative investors who want their lump sum savings to generate regular income while keeping the principal fully protected.

What Is Post Office Monthly Income Scheme (POMIS)?

POMIS is a one-time investment scheme operated by India Post, where investors deposit a lump sum amount and receive interest payouts every month for a fixed tenure of five years.

The most reassuring aspect of this scheme is that it is fully backed by the Government of India, which means there is no exposure to market risks. Investors do not have to worry about fluctuations in stock markets, mutual funds, or interest rate uncertainty during the tenure.

Current Interest Rate and Investment Limits

As per the latest update for 2026, the Post Office MIS is offering an annual interest rate of 7.4%, which is paid out monthly. This rate is considered competitive when compared to many bank fixed deposits, especially for investors prioritising income stability.

Key investment limits include:

• Minimum investment: ₹1,000

• Maximum investment for a single account holder: ₹9 lakh

• Maximum investment for a joint account: ₹15 lakh

• A joint account can have up to three individuals

Monthly Income on ₹2 Lakh Investment

A common question among investors is how much income this scheme can generate with a modest investment.

If an individual invests ₹2 lakh in the Post Office MIS at an annual interest rate of 7.4%:

• Annual interest earned: ₹14,800

• Monthly income: approximately ₹1,233

Over the full five-year tenure, the investor earns:

• ₹73,980 as total interest

• ₹2 lakh principal amount returned in full at maturity

This makes the scheme ideal for meeting recurring household expenses or supplementing pension income.

Joint Account Facility and Withdrawal Rules

The Post Office MIS allows investors to open joint accounts, making it easier for couples or families to pool funds. In joint accounts, all holders have equal ownership of the investment.

In case of early withdrawal:

• Withdrawal after 1 year but before 3 years attracts a 2% penalty

• Withdrawal after 3 years attracts a 1% penalty

• No premature withdrawal is allowed within the first year

Despite the penalty, the scheme still remains attractive due to its overall safety and predictability.

How to Open a POMIS Account

To invest in this scheme, having a Post Office Savings Account is mandatory, as the monthly interest is credited directly into it.

The account opening process is simple:

• Visit the nearest post office

• Fill out the MIS application form

• Submit Aadhaar card, PAN card, and passport-size photographs

• Deposit the investment amount via cash or cheque

Once the account is active, monthly interest starts flowing automatically.