Post Office Monthly Income Scheme. 7.4% annual paid MONTHLY. 5-year tenure. ₹9L individual / ₹15L joint max. Senior retirement income stream popular. Interest taxable.
POMIS = POST OFFICE MONTHLY INCOME SCHEME. Government-backed savings scheme with MONTHLY interest payout. KEY: (1) RATE: 7.4% per annum (FY 2026-27, reviewed quarterly). (2) INTEREST: paid MONTHLY to account. (3) TENURE: 5 YEARS. (4) ₹9 LAKH max individual / ₹15 LAKH max joint (2 holders). (5) NO LOCK-IN beyond initial — premature withdrawal allowed after 1 year (with penalty). (6) GOVERNMENT-BACKED — zero credit risk. (7) Popular with SENIOR CITIZENS for retirement income.
POMIS MONTHLY INCOME (7.4% annual): (1) ₹1L investment: ₹7,400 / 12 = ₹617 monthly. (2) ₹5L investment: ₹37,000 / 12 = ₹3,083 monthly. (3) ₹9L MAX individual: ₹66,600 / 12 = ₹5,550 monthly. (4) ₹15L MAX joint: ₹1,11,000 / 12 = ₹9,250 monthly. STRATEGIC: Senior couple can invest ₹15L joint + each ₹9L individual = ₹33L total → ~₹20K monthly income. STABLE income stream for retirees.
POMIS: 7.4% monthly, ₹9L individual cap, 5-yr tenure, govt-backed. SCSS (Senior Citizens Savings Scheme): 8.2% quarterly, ₹30L cap, 5-yr tenure, 60+ age only. BANK FD: 7-7.5% varies (monthly/quarterly/annual), unlimited, 1-10 yr flexible. COMPARISON: (1) SCSS BEST for seniors (highest rate, larger cap). (2) POMIS for non-seniors needing monthly income. (3) Bank FD for flexibility. (4) PPF (7.1%) for tax-free + long-term. STRATEGIC: Senior couple combo — SCSS ₹30L + POMIS ₹15L = ₹45L stable income generators.
POMIS TAX: (1) INTEREST FULLY TAXABLE at slab rate. (2) NO 80C deduction for POMIS investment. (3) NO TDS — investor self-pays tax via ITR. (4) MONTHLY interest credited to PO savings account / bank account. (5) NO indexation benefit. SENIOR CITIZENS: 80TTB ₹50K interest deduction available (includes POMIS interest). EXAMPLE: ₹9L POMIS investment, ₹66.6K annual interest. SENIOR: deduction ₹50K → ₹16.6K taxable at slab. SUB-60: ₹66.6K fully taxable at slab. POMIS less tax-efficient than tax-free bonds for HNW.
POMIS STRATEGY: (1) RETIREES seeking MONTHLY INCOME: ideal stable scheme. (2) JOINT ACCOUNT ₹15L max + individual ₹9L each: family ₹33L+ deployment. (3) NOT TAX-EFFICIENT: interest taxable. (4) COMBINE WITH SCSS for seniors (higher rate). (5) PREMATURE WITHDRAWAL: 1+ year — 2% penalty. 3+ years — 1% penalty. (6) AUTO-RENEWAL not available — reinvest at maturity. (7) NRI NOT ELIGIBLE for POMIS. (8) MAY 2025 NPS Vatsalya — alternative for children. (9) 5-YEAR TENURE locks rate — good if rates expected to fall. CONSULT financial advisor for retirement income mix.