In India, the Post Office offers several investment schemes that provide non-market-linked returns. Known as “small savings schemes,” these Post Office FD plans carry a sovereign guarantee. This makes sure that in case of default, investors receive 100% of their principal along with the accrued interest.
These schemes are managed by the National Savings Institute, which operates under the Ministry of Finance. Among the several small savings schemes is the Post Office Monthly Income Scheme (POMIS). It is designed for conservative investors who want a fixed monthly interest income.
As of August 15, 2025, POMIS offers an interest rate of 7.40% per annum, which is applicable for the quarter from July to September 2025. Rates are subject to change. Please check the latest interest rates before investing.
Want to know more? In this article, let’s understand this Post Office FD scheme in detail.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings plan approved by the Ministry of Finance. In this Post Office FD plan, you invest a one-time lump sum for 5 years and then receive monthly interest.
A POMIS account can be opened with a minimum deposit of ₹1,000 and in multiples of ₹1,000 thereafter. Once the account is active, the post office will credit the monthly interest to you at the applicable rate. However, the amount you invest should be within the scheme’s allowed limits (discussed later).
This Post Office FD scheme is a low-risk option ideal for conservative investors. Through it, you can earn a stable monthly income without exposure to market fluctuations. Please note that both your original investment and interest are guaranteed by the government of India (GoI).
Who Can Open a POMIS Account?
You can open a Post Office Monthly Income Scheme (POMIS) account if you are a resident individual in India and are a single adult. You may open more than one POMIS account (single or joint) within the permitted deposit limits.
Furthermore, accounts can also be opened online through the India Post e-Banking portal. Please note that an active Post Office Savings Account is required to use internet banking services.
Let’s check out some other cases as well:
Joint POMIS Account
A joint POMIS account can be opened by up to three adults as follows:
| Joint ‘A’ type | Joint ‘B’ type |
| All account holders must operate the account together, or the surviving holders after one’s death. | Any one account holder can operate the account individually, or the surviving holders after one’s death. |
POMIS Account for a Minor
A minor aged 10 years or above can open a POMIS account. Alternatively, a guardian can open the POMIS account for a minor.
Later, when the minor account holder turns 18, they must submit a new Account Opening Form and fresh KYC documents at the post office to convert it into an adult account.
What are the Latest Investment Limits of the POMIS in 2025?
To open a Post Office Monthly Income Scheme (POMIS) account, you must follow these deposit rules:
| Maximum Limit in a “Single Account” | Maximum Limit in a “Joint Account” |
| ₹9 lakh | ₹15 lakh |
If you hold multiple POMIS accounts, the total deposits across all your accounts cannot exceed ₹9 lakh in single accounts or ₹15 lakh in joint accounts.
What is the Latest POMIS Interest Rate?
As of August 15, 2025, the POMIS offers an interest rate of 7.40% p.a. This rate will remain applicable for the quarter July to September 2025. Rates are subject to change. Please check the latest interest rates before investing.
For those unaware, the GoI reviews the interest rates of fixed deposit schemes in the Post Office every quarter. However, the interest rate once booked remains valid for the entire duration of the scheme.
Is Premature Withdrawal Allowed in POMIS?
You cannot close a Post Office Monthly Income Scheme (POMIS) account before completing 1 year from the date of opening. Now, if you close the account after 1 year, the following penalty rules will apply:
| Premature Closure Time Limits | Penalty |
| After 1 year but before 3 years | 2% of your deposit amount will be deducted, and the remaining balance will be paid to you. |
| After 3 years but before maturity | 1% of your deposit amount will be deducted, and the remaining balance will be paid to you. |
Note: The above premature withdrawal rules are applicable as of August 14, 2025. Please check the latest rules before investing.
In 2025, Invest in FDs Online Via the GoldenPi Platform!
The Post Office Monthly Income Scheme (POMIS) is one of several fixed deposit schemes offered through post offices by the National Savings Institute, Government of India.
These schemes carry a 100% sovereign guarantee and are fully government-backed.
As of August 15, 2025, the POMIS offers an interest rate of 7.40% p.a. (July–September 2025) for a fixed tenure of 5 years. The interest is paid only on a monthly basis, and the principal is returned at maturity.
If you are looking beyond POMIS for more popular fixed deposit options from leading NBFCs and banks, you can explore them on the GoldenPi platform. Here, you can compare rates and book your FD online within minutes (without visiting any branch). Check out the various FD options from here.
Post Office FD Scheme FAQs
1. What is the latest Post Office Monthly Income Scheme (POMIS) interest rate in 2025?
As of August 15, 2025, this fixed deposit scheme in the post office offers an interest rate of 7.40% p.a., which is valid for the quarter of July to September 2025.
Interest rates are subject to change. Please refer to the latest interest rates before investing
2. Can the POMIS account be extended?
No, a POMIS account cannot be extended beyond its 5-year term. Once it matures, you must withdraw the funds. If you wish to continue, you can open a new POMIS account with the withdrawn amount (subject to the deposit limits).
3. What happens if the POMIS account holder dies before maturity?
If the account holder dies before maturity, the account will be closed. Next, the deposit will be refunded along with interest calculated up to the month before the refund is initiated.
For example, say the refund is supposed to be made in September. Now, interest will be calculated only up to August.
4. What happens if I can’t close my POMIS account at maturity?
If the POMIS account has matured but is not closed, the balance will continue to earn interest at the Post Office Savings Account rate until it is closed.
5. Can I take my total interest at maturity from the POMIS account?
No! POMIS pays interest only on a monthly basis. You cannot accumulate the interest and take it as a lump sum at maturity.
Please note that at the end of 5 years, you will receive only your principal amount back, as the interest would have already been paid out each month.
6. Can Senior Citizens Get Extra Interest from the POMIS Scheme?
No! The Post Office Monthly Income Scheme (POMIS) does not offer any additional interest for senior citizens. The same interest rate applies to all eligible investors.
Disclaimer: This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.
Fixed Deposit schemes are offered by the Post Office, which is regulated by the Government of India. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.
