Definition
Post Office Monthly Income Scheme (POMIS)
POMIS is a post office scheme that pays a fixed monthly interest income on a lump-sum deposit, with capital protection.
The Post Office Monthly Income Scheme (POMIS) lets you invest a lump sum and earn a fixed monthly interest payout at a government-set rate, with the principal returned at maturity after a defined tenure. It is popular with retirees and others seeking regular, predictable income.
There are investment limits for single and joint accounts, and the scheme offers sovereign safety. The monthly interest is taxable, and there is no Section 80C benefit on the deposit.
POMIS complements other retiree-income tools like the Senior Citizen Savings Scheme and annuities, and the monthly payout can be routed into an RD or fund to keep the income growing.
Related terms
- Senior Citizen Savings Scheme (SCSS)SCSS is a government savings scheme for people aged 60 and above, offering attractive, regular interest income with sovereign safety.
- Kisan Vikas Patra (KVP)KVP is a post office savings certificate that doubles your invested money over a fixed period at a government-set interest rate.
- AnnuityAn annuity is a financial product that pays a regular income stream, typically for life, in exchange for a lump sum — used mainly to secure income in retirement.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.