Post Office Scheme: If you’re considering a safe investment option that gives you steady returns every month, investing ₹1 lakh or ₹2 lakh in the Post Office Monthly Income Scheme (POMIS) might be the right choice. Especially for those who are risk-averse or looking for a secondary monthly income stream, POMIS offers stability backed by the Government of India. Let’s explore how much you’ll actually get back when you invest ₹1 lakh or ₹2 lakh in this scheme, and why it’s a solid option for many Indian families.
Post Office Scheme
| Feature | Details |
|---|---|
| Interest Rate (May 2025) | 7.4% p.a., payable monthly (Groww) |
| Tenure | 5 Years |
| Minimum Investment | ₹1,000 |
| Maximum Investment | ₹9 lakh (Single), ₹15 lakh (Joint) |
| Monthly Income (₹1 Lakh) | ₹616.67 |
| Total Return in 5 Years | ₹1.37 lakh (₹1 Lakh + ₹37,000 interest) |
| Official Website | India Post |
Investing ₹1 lakh or ₹2 lakh in the Post Office Monthly Income Scheme is a smart, safe, and predictable choice. You receive monthly income, enjoy government-backed security, and get your entire principal back after 5 years. It’s ideal for those looking to diversify their savings or secure a supplementary income.
What Is the Post Office Monthly Income Scheme (POMIS)?
POMIS is a government-backed savings scheme designed to provide investors with a guaranteed monthly interest on their deposits. It’s ideal for individuals who prefer predictable income, such as retirees or conservative investors. You invest a lump sum for 5 years and earn interest every month at a fixed rate, currently set at 7.4% per annum as of May 2025. The capital is returned to you after 5 years.
Post Office Scheme: How Much Will You Get Back? A Clear Breakdown
For ₹1 Lakh Investment:
- Monthly Interest: ₹616.67
- Total Interest (5 Years): ₹616.67 × 60 months = ₹37,000
- Maturity Amount: ₹1,37,000 (includes principal)
For ₹2 Lakh Investment:
- Monthly Interest: ₹1,233.33
- Total Interest (5 Years): ₹1,233.33 × 60 months = ₹74,000
- Maturity Amount: ₹2,74,000 (Source: 5paisa)
Features That Make POMIS Attractive
Steady Monthly Income
Receive monthly payouts directly to your linked savings account, making it ideal for monthly budgeting.
Government-Backed Safety
Your money is safe, with zero market risk, since POMIS is offered by the Indian Postal Department.
Fixed Returns
Unlike mutual funds or stock markets, POMIS offers fixed interest, so you always know what you’ll earn.
Suitable for All
Whether you’re a retired individual, homemaker, or conservative investor, POMIS fits well into most financial plans.
Key Terms You Should Know
- Tenure: 5 years fixed lock-in period
- Taxation: Interest earned is taxable, but no TDS is deducted
- Account Holding:
- Single Account: Up to ₹9 lakh
- Joint Account (up to 3 adults): Up to ₹15 lakh (Reference: The Economic Times)
How to Open a POMIS Account
Post Office Scheme Process
- Visit your nearest Post Office.
- Fill out the POMIS application form.
- Provide necessary documents:
- Aadhaar, PAN, Passport, etc.
- Address proof
- Passport-size photos
- Deposit the investment amount via cash, cheque, or demand draft.
- Nominate a beneficiary. (Source: Policybazaar)
Rules for Early Withdrawal
- Before 1 Year: No withdrawal allowed
- 1 to 3 Years: 2% penalty on principal
- 3 to 5 Years: 1% penalty on principal This ensures commitment while still offering flexibility in case of financial emergencies. (Reference: Policybazaar)
How to Calculate Returns
Use a free online calculator to estimate exact monthly returns:
- Groww Calculator
- Scripbox Calculator
- Policybazaar Calculator
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FAQs on Post Office Scheme
Q1. Is the Post Office MIS taxable?
Yes, the interest earned is taxable as per your income slab. However, there is no TDS deduction at the source.
Q2. Can NRIs invest in POMIS?
No, only resident Indian individuals are eligible.
Q3. Can I extend the scheme after 5 years?
You can reinvest in a new POMIS account, but the current one cannot be extended beyond 5 years.
Q4. Can I add funds later?
No. You must invest the full amount at once. To add more, open a separate POMIS account.
Q5. Can I transfer the account?
Yes, accounts can be transferred between post offices within India.
